A trial balance before adjustments included the following: Debit Credit Sales P 425,000 Sales returns and allowances P 14,000 Accounts receivable 53,000 Allowance for doubtful accounts 760 If the estimate of uncollectible is made by taking 10% of gross accounts receivables, the amount of adjustment is

A trial balance before adjustments included the following: Debit Credit Sales P 425,000 Sales returns and allowances P 14,000 Accounts receivable 53,000 Allowance for doubtful accounts 760 If the estimate of uncollectible is made by taking 10% of gross accounts receivables, the amount of adjustment is

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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At December 31, Gill Co. reported accounts receivable of $236,000 and an allowance for uncollectible accounts of $1,450 (credit) before any adjustments. An analysis of accounts receivable suggests that the allowance for uncollectible accounts should be 2% of accounts receivable. The amount of the adjustment for uncollectible accounts would be: Multiple Choice $1,450 $4.980 $3,270. $4,720
Determine the amount to be added to Allowance for Doubtful Accounts in each of the following cases and indicate the ending balance in each case. a. Credit balance of $410 in Allowance for Doubtful Accounts just prior to adjustment. Using the aging method, the balance of Allowance for Doubtful Accounts is estimated as $7,690. Amount added Ending balance b. Credit balance of $410 in Allowance for Doubtful Accounts just prior to adjustment. Bad debt expense is estimated at 1% of credit sales, which totaled $1,032,000 for the year. Amount added Ending balance LA ?
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At December 31, Gill Co. reported accounts receivable of $281,000 and an allowance for uncollectible accounts of $1,600 (credit) before any adjustments. An analysis of accounts receivable suggests that the allowance for uncollectible accounts should be 3% of accounts receivable. The amount of the adjustment for uncollectible accounts would be: Multiple Choice $8,340. $1,600. $8,430. $6,830.
d) Golden Music Company uses the allowance method to estimate uncollectible accounts receivable. An aging of the accounts receivable revealed the following: Estimated Percentage Uncollectible Current Accounts $17,000 $1,500 $1,200 $500 $900 $21,100 1% 1-30 days past due 31–60 days past due 61–90 days past due Over 90 days past due Total Accounts Receivable 3% 6% 12% 25% On 31 December 2021, the company has found out that a customer went bankrupt and management agreed that the accounts receivable of $900 included above which is past due for over 90 days can be written off. i) Compute the total estimated uncollectible accounts receivable as at 31 December 2021. ii) Prepare the journal entry year-end to write off the accounts receivable of $900 and the adjusting journal entry to record the bad debts for the year ended 31 December 2021.
Suzuki Supply reports the following amounts at the end of 2021 (before adjustment).Credit Sales for 2021 $260,000 Accounts Receivable, December 31, 2021 55,000 Allowance for Uncollectible Accounts, December 31, 2021 1,100 (credit )Required: 1. Record the adjustment for uncollectible accounts using the percentage-of-receivables method. Suzuki estimates 12% of receivables will not be collected. 2. Record the adjustment for uncollectible accounts using the percentage-of-credit-sales method. Suzuki estimates 3% of credit sales will not be collected. 3. Calculate the effect on net income (before taxes) and total assets in 2021 for each method.
A trial balance before adjustments included the following: Debit Credit Sales 425,000 Sales returns and allowance 14,000 Accounts receivable 43,000 Allowance for doubtful accounts 760 a. If the estimate of uncollectibles is made by taking 2% of net sales, the amount of the adjustment is $ Answer 1 Question 5 b. If the estimate of uncollectibles is made by taking 10% of gross account receivables, the amount of the adjustment is $ Answer 2 Question 5
Determine the amount to be added to Allowance for Doubtful Accounts in each of the following cases and indicate the ending balance in each case. a. Credit balance of $350 in Allowance for Doubtful Accounts just prior to adjustment. Using the aging method, the balance of Allowance for Doubtful Accounts is estimated as $7,220. Amount added Ending balance b. Credit balance of $350 in Allowance for Doubtful Accounts just prior to adjustment. Bad debt expense is estimated at 2% of credit sales, which totaled $980,000 for the year. Amount added Ending balance MacBook Pro
Allowance for doubtful accounts has a credit balance of $9000 at the end of the year, before adjustments. Sales for the year amounted to $1740000, and sales returns and allowances amounted to $63000. If uncollectible accounts expense is estimated at 2% of the net sales, the amount of the appropriate adjusting entry will be (nearest whole dollar)
A trial balance before adjustments included the following: Sales - ₱425,000; sales returns and allowances - ₱14,000; accounts receivable - ₱43,000; Allowance for doubtful accounts -₱760. If the estimate of uncollectible is made by taking 2% of net sales, the amount of bad debts expense for the year is:
Allowance for Doubtful Accounts has a credit balance of $23000 at the end of the year, before adjustments. Sales for the year amounted to $1190000, and sales returns and allowances amounted to $112000. If uncollectible accounts expense is estimated at 1% of net sales, the amount of the appropriate adjusting entry will be (nearest whole dollar): Add your answer
before adjustments at year-end: Problem 5-1 (IAA) Marvelous Company reported the following information Accounts receivable Notes receivable Allowance for doubtful accounts 500,000 200,000 20,000 5,000,000 Sales Sales return and allowances Sales discount 30,000 20,000 Required: Prepare adjusting entry to provide for doubtful accounts under each of the following independent assumptions: a. Past experience indicates that 75% of all sales are credit sales and that an average 2% 'of credit sales may prove uncollectible. b. One percent of gross sales may prove uncollectible. c. An analysis of the aging of trade receivables indicates that accounts receivable in the amount of P80,000 may prove uncollectible. d. The policy is to maintain an allowance for doubtful accounts equal to 10% of the outstanding accounts receivable.