Accounts Receivable of Power Company during 2020 was $140,000; it's Sales Revenue was $500,000, Sales Return and Allowance $40,000 and Sales Discount $10,000. AFDA has a debit balance of $2.000.The adjusting entry at December 31, 2020 assuming that the expected bad debts are 4% of Accounts Receivable will include: * O AFDA $20,000 O AFDA $7,600 O AFDA $5,600 KO AFDA $3,600 O None of the above

Accounts Receivable of Power Company during 2020 was $140,000; it's Sales Revenue was $500,000, Sales Return and Allowance $40,000 and Sales Discount $10,000. AFDA has a debit balance of $2.000.The adjusting entry at December 31, 2020 assuming that the expected bad debts are 4% of Accounts Receivable will include: * O AFDA $20,000 O AFDA $7,600 O AFDA $5,600 KO AFDA $3,600 O None of the above

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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Moving to another question will save this response. Question 14 Sama company has the following unadjusted account balances at December 31, 2021; Total Sales of $720,000, Accounts Receivable of $205,000 and the allowance was estimated as 3.5% of the total Account Receivable. The Allowance for Doubtful Accounts had a credit balance of $2,400, before the estimate was made. Required: Prepare the adjusting journal entry to record bad debts expense for 2021. Answer in the following format [Note: This is just an example and is not related to the question] Jan 1 Dr. Cash...... 120 Cr. Owner capital.............. 120 10 (Mac) I %0 O
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FDN Company reported Accounts Receivable of P10,000,000 on December 31, 2021. Allowance for Doubtful Accounts was P1,000,000 on January 1, 2021. The following information is provided pertaining to the company's aging analysis. Time outstanding Accounts receivable Percent uncollectible Under 90 days P7,200,000 5% 91 180 days 1,800,000 7% 181 360 days 1,000,000 50% How much should be reported as Allowance for Doubtful Accounts as of December 31, 2021?