Related questions
Concept explainers
12/31/2019: At the end of the first year of operations, Yolandi Company had $900,000 in sales and
For the end of 2019, after the
|
Bad debt expense |
|
|
Allowance for doubtful accounts |
|
|
For the end of 2019, what is the company’s net realizable value? |
|
12/31/2020: During 2020, $10,000 in accounts receivable were written off. At the end of the second year of operations, Yolandi Company had $1,000,000 in sales and accounts receivable of $400,000. Yolandi’s management has estimated that 1.5% of sales will be uncollectible.
For the end of 2020, after the adjusting entry for bad debts was journalized, what is the balance in the following accounts:
|
Bad debt expense |
|
|
Allowance for doubtful accounts |
|
|
For the end of 2020, what is the company’s net realizable value? |
|
12/31/2019: At the end of the first year of operations, Yolandi Company had $900,000 in sales and accounts receivable of $350,000. Yolandi’s management has estimated that $9,000 in accounts receivable would be uncollectible (use the aging method).
For the end of 2019, after the adjusting entry for bad debts was journalized, what is the balance in the following accounts:
|
Bad debt expense |
|
|
Allowance for doubtful accounts |
|
|
For the end of 2019, what is the company’s net realizable value? |
|
12/31/2020: During 2020, $10,000 in accounts receivable were written off. At the end of the second year of operations, Yolandi Company had $1,000,000 in sales and accounts receivable of $400,000. Yolandi’s management has estimated that $17,000 in accounts receivable would be uncollectible (use the aging method).
|
Bad debt expense |
|
|
Allowance for doubtful accounts |
|
|
For the end of 2020, what is the company’s net realizable value? |
|
Trending nowThis is a popular solution!
Step by stepSolved in 2 steps
- On December 31, 2021, the balance in Megan's Products Accounts Receivable was $680,000 and net credit sales amounted to $3,800,000 during 2021. An aging analysis of the accounts receivable indicated that $40,000 in accounts are expected to be uncollectible. Instructions Prepare the adjusting entries to record estimated bad debt expense using the percentage-of-receivables basis under each of the following independent assumptions. You need not include dollar signs, but please do insert commas when needed. (a) Allowance for Doubtful Accounts has a credit balance of $3,200 before adjustment. (b) Allowance for Doubtful Accounts has a debit balance of $730 before adjustment. (1) Percentage-of-receivables basis: (a) Bad Debt Expense..... Allowance for Doubtful Accounts... (b) Bad Debt Expense..... Allowance for Doubtful Accounts... 4arrow_forwardRaintree Cosmetic Company sells its products to customers on a credit basis. An adjusting entry for bad debt expense is recorded only at December 31, the company's fiscal year-end. The 2023 balance sheet disclosed the following: Current assets: Receivables, net of allowance for uncollectible accounts of $36,000 $ 462,000 During 2024, credit sales were $1,780,000, cash collections from customers $1,860,000, and $41,000 in accounts receivable were written off. In addition, $3,600 was collected from a customer whose account was written off in 2023. An aging of accounts receivable at December 31, 2024, reveals the following: Age Group 0-60 days 61-90 days 91-120 days Percentage of Year- End Receivables in Group Percent Uncollectible 70% 20 5% 15 5 20 5 40 Over 120 days Required: 1. Prepare summary journal entries to account for the 2024 write-offs and the collection of the receivable previously written off. 2. Prepare the year-end adjusting entry for bad debts according to each of the…arrow_forward10arrow_forward
- Provide Correctarrow_forwardConcord, Inc. had net sales in 2025 of $1,428,800. At December 31, 2025, before adjusting entries, the balances in selected accounts were Accounts Receivable $392,000 debit, and Allowance for Doubtful Accounts $4,240 credit. If Concord estimates that 9% of its receivables will prove to be uncollectible. Prepare the December 31, 2025, journal entry to record bad debt expense. (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. List debit entry before credit entry.)arrow_forwarda) Prepare all journal entries to record the activity for the items above for 2020 b) Prepare any journal entries required at December 31, 2020 to record bad debt expense for the yeararrow_forward
- 12/31/2020: During 2020, $10,000 in accounts receivable were written off. At the end of the second year of operations, Yolandi Company had $1,000,000 in sales and accounts receivable of $400,000. XYZ’s management has estimated that $17,000 in accounts receivable would be uncollectible. For the end of 2020, after the adjusting entry for bad debts was journalized, what is the balance in the following accounts: Bad debt expense: Allowance for doubtful accounts: For the end of 2020, what is the company's net realizable value?arrow_forward12/31/2020: During 2020, $10,000 in accounts receivable were written off. At the end of the second year of operations, Yolandi Company had $1,000,000 in sales and accounts receivable of $400,000. Yolandi’s management has estimated that $17,000 in accounts receivable would be uncollectible. Bad debt expense Allowance for doubtful accounts For the end of 2020, what is the company’s net realizable value?arrow_forwardDuring 2018, yellow Corp. made sales of 370,000 on account. The balances in its Account Receivable and Allowance for doubtful accounts on December 31,2018 were $100,000 and 15,000(credit) respectively. An aging schedule indicated that $22,000 of the receivables would prove uncollectible. The amount of bad debts expenses that had to be recorded was?arrow_forward
- On the year end of July 31, 2020, Rainbow Appliances had the following account balances before adjustments for bad debt was made. Net Credit Sales for the period $1,028,000 CR Accounts Receivable $656,000 DR AFDA $1,900 DR Do not enter dollar signs or commas in the input boxes. a) Use the year-end balances reported on the balance sheet and the aging schedule shown below to calculate the allowance for doubtful accounts. Aging Category Bad Debt % Balance Estimated Bad Debt Less than 30 days 2% $422,000 31-60 days 4% $105,000 61-90 days 11% $75,000 91-120 days 28% $37,000 Over 120 days 52% $17,000 Total $656,000 Prepare the journal entry to record bad debt expense for the year: Date Account Title and Explanation Debit Credit Jul 31 To record bad debt expense b) Assume instead that Rainbow Appliances used the income statement approach for estimating bad debt. If historical data indicates that approximately 2% of net credit sales are uncollectible, what amount is expected to be…arrow_forwardi need the answer quicklyarrow_forwardHogenson Company estimates bad debt expense at 0.60% of credit sales. The company reported accounts receivable and allowance for uncollectible accounts of $481,000 and $1,480 respectively on December 31, 2018. During 2019, Hogenson Company's credit sales and collections were $325,000 and $316,000, respectively, and $1,870 in accounts receivable were written off. Determine the company’s net realizable value of accounts receivable on December 31, 2019. A. $488,440.B. $484,700.C. $486,570. D. $469,020.arrow_forward
AccountingAccountingISBN:9781337272094Author:WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.Publisher:Cengage Learning,
Accounting Information SystemsAccountingISBN:9781337619202Author:Hall, James A.Publisher:Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis...AccountingISBN:9780134475585Author:Srikant M. Datar, Madhav V. RajanPublisher:PEARSON
Intermediate AccountingAccountingISBN:9781259722660Author:J. David Spiceland, Mark W. Nelson, Wayne M ThomasPublisher:McGraw-Hill Education
Financial and Managerial AccountingAccountingISBN:9781259726705Author:John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting PrinciplesPublisher:McGraw-Hill Education