The trial balance before adjustment of Oriole Inc. shows the following balances. Accounts Receivable Allowance for Doubtful Accounts Sales Revenue Dr. $117,000 2,150 Cr. $884,000 Give the entry for estimated bad debts assuming that the allowance is to provide for doubtful accounts on the basis of (a) 4% of accounts receivable assuming Allowance for Doubtful Accounts has the balance given in the problem data, and (b) 5% of accounts receivable assuming Allowance for Doubtful Accounts has a $2,110 credit balance. (If no entry is required, select "No Entry" for account titles and enter 0 for the amounts. Credit account titles are automatically indented when the amount is entered. D not indent manually.)

The trial balance before adjustment of Oriole Inc. shows the following balances. Accounts Receivable Allowance for Doubtful Accounts Sales Revenue Dr. $117,000 2,150 Cr. $884,000 Give the entry for estimated bad debts assuming that the allowance is to provide for doubtful accounts on the basis of (a) 4% of accounts receivable assuming Allowance for Doubtful Accounts has the balance given in the problem data, and (b) 5% of accounts receivable assuming Allowance for Doubtful Accounts has a $2,110 credit balance. (If no entry is required, select "No Entry" for account titles and enter 0 for the amounts. Credit account titles are automatically indented when the amount is entered. D not indent manually.)

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter9: Accounting For Receivables

Section: Chapter Questions

Problem 6PA: Funnel Direct recorded $1,345,780 in credit sales for the year and $695,455 in accounts receivable....

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Funnel Direct recorded $1,345,780 in credit sales for the year and $695,455 in accounts receivable. The uncollectible percentage is 4.4% for the income statement method and 4% for the balance sheet method. A. Record the year-end adjusting entry for 2018 bad debt using the income statement method. B. Record the year-end adjusting entry for 2018 bad debt using the balance sheet method. C. Assume there was a previous credit balance in Allowance for Doubtful Accounts of $13,888; record the year-end entry for bad debt using the income statement method, and then the entry using the balance sheet method.
Bristax Corporation recorded $1,385,660 in credit sales for the year, and $732,410 in accounts receivable. The uncollectible percentage is 3.1% for the income statement method and 4.5% for the balance sheet method. A. Record the year-end adjusting entry for 2018 bad debt using the income statement method. B. Record the year-end adjusting entry for 2018 bad debt using the balance sheet method. C. Assume there was a previous debit balance in Allowance for Doubtful Accounts of $20,550; record the year-end entry for bad debt using the income statement method, and then the entry using the balance sheet method. D. Assume there was a previous credit balance in Allowance for Doubtful Accounts of $17,430; record the year-end entry for bad debt using the income statement method, and then the entry using the balance sheet method.
Jars Plus recorded $861,430 in credit sales for the year and $488,000 in accounts receivable. The uncollectible percentage is 2.3% for the income statement method, and 3.6% for the balance sheet method. A. Record the year-end adjusting entry for 2018 bad debt using the income statement method. B. Record the year-end adjusting entry for 2018 bad debt using the balance sheet method. C. Assume there was a previous debit balance in Allowance for Doubtful Accounts of $10,220, record the year-end entry for bad debt using the income statement method, and then the entry using the balance sheet method. D. Assume there was a previous credit balance in Allowance for Doubtful Accounts of $5,470, record the year-end entry for bad debt using the income statement method, and then the entry using the balance sheet method.
Tines Commerce computes bad debt based on the allowance method. They determine their current years balance estimation to be a credit of $45,000. The previous period had a credit balance in Allowance for Doubtful Accounts of $12,000. What should be the reported figure in the adjusting entry for the current period? A. $12,000 B. $45,000 C. $33,000 D. $57,000
The following accounts receivable information pertains to Select Distributors. A. Determine the estimated uncollectible bad debt for Select Distributors in 2018 using the balance sheet aging of receivables method. B. Record the year-end 2018 adjusting journal entry for bad debt. C. Assume there was a previous debit balance in Allowance for Doubtful Accounts of $233,180; record the year-end entry for bad debt, taking this into consideration. D. Assume there was a previous credit balance in Allowance for Doubtful Accounts of $199,440; record the year-end entry for bad debt, taking this into consideration. E. On March 21, 2019, Select Distributors identifies Aida Normans account as uncollectible in the amount of $10,890. Record the entry for identification.
Entries for bad debt expense under the direct write-off and allowance methods The following selected transactions were taken from the records of Rustic Tables Company for the year ending December 31: A. Journalize the transactions under the direct write-off method. B. Journalize the transactions under the allowance method, assuming that the allowance account had a beginning balance of 36,000 at the beginning of the year and the company uses the analysis of receivables method. Rustic Tables Company prepared the following aging schedule for its accounts receivable: C. How much higher (lower) would Rustic Tables net income have been under the direct write-off method than under the allowance method?
The trial balance before adjustment of Grouper Inc. shows the following balances. Dr. Cr. Accounts Receivable $102,600 Allowance for Doubtful Accounts 1,995 Sales Revenue (all on credit) $775,200 Give the entry for estimated bad debts assuming that the allowance is to provide for doubtful accounts on the basis of (a) 4% of gross accounts receivable and (b) 5% of gross accounts receivable and Allowance for Doubtful Accounts has a $1,905 credit balance. (If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. Credit account titles are automatically indented when the amount is entered. Do not indent manually.) No. Account Titles and Explanation Debit Credit (a) ? ? ? allowance for doubtful accounts ? ? (b) ? ? ? ? ? ?
A company has accounts receivable of $1,000,000 at 12/31 and estimates that the allowance for doubtful accounts should be 2% of this balance. If allowance for doubtful accounts has a debit balance of $1,000 prior to adjustment, the adjusting entry necessary to properly adjust the allowance will include a debit to bad debt expenses in the amount of $19,000 debit to bad debt expenses in the amount of $21,000 credit to allowance for doubtful account in the amount of $20,000 dedit to allowance for doubtful account in the amount of $20,000
sheridan company uses the percentage of receiveables method for recording bas debt expense. the axcounts receiveable balance is 608000 and credit sales are 2620000z. management estimates 4% of accounts receiveable will be un collectible. what adjusting entry will sheidan comany make to record bad bedt expense if the allowance for doubtful accounts has 5500 balance
For each of the following scenarios, indicate the amount of the adjusting journal entry for Bad Debt Expense to be recorded, the balance in Allowance for Doubtful Accounts after adjustment at December 31, and the net realizable value of Accounts Receivable at December 31. a. Based on an analysis of Simmons Company's $380,000 balance in Accounts Receivable at December 31, it was estimated that $15,500 will be uncollectible. There is a credit balance of $1,200 in Allowance for Doubtful Accounts before adjustment. Bad Debt Expense $ Allowance for Doubtful Accounts at Dec. 31 Net Realizable Value of Accounts Receivable at Dec. 31 b. Blake Company had credit sales of $900,000 at year-end, an Accounts Receivable balance of $425,000 at December 31, and an Allowance for Doubtful Accounts credit balance of $11,000 before adjustment. Blake estimates bad debt expense as ¾ of 1% of credit sales. Bad Debt Expense $ Allowance for Doubtful Accounts at Dec. 31 Net Realizable…
Assume that accounts receivable and the allowance for doubtful accounts (AFDA )ending balances were RO400,000 debit and RO5000 credit balances respectively at December 31, and the uncollectible accounts is estimated to be 6% of accounts receivable. The adjusting entry to achieve the correct AFDA adjusted ending balance under percentage of accounts receivables method would be; a. None of the given options b. Dr Bad debt expenses A/C OMR 24000 and Cr Allowance for doubtful accounts A/C OMR 24000 c. Dr Bad debt expenses A/C OMR 19000 and Cr Allowance for doubtful accounts A/C OMR 19000 d. Dr Bad debt expenses A/C OMR 5000 and Cr Allowance for doubtful accounts A/C OMR 5000 Clear my choice
At the end of the current year, Accounts Receivable has a balance of $782,970 Allowance for Doubtful Accounts has a credit balance of $5,240 and sales for the year total $3,692,000. Bad debt expense is estimated at ½ of 1% of sales. a. Determine the amount of the adjusting entry for bad debt expense.$ b. Determine the adjusted balances of Accounts Receivable, Allowance for Doubtful Accounts, and Bad Debt Expense. c. Determine the net realizable value of accounts receivable.$