Accounts Receivable of Zein Company during 2020 was $90,000, it's Sales Revenue was $750,000, Sales Return and Allowance $100,000 and Sales Discount $60,000. AFDA has a credit balance of $2,000.The adjusting entry at December 31, 2020 assuming that the expected bad debts are 6% of Accounts Receivable will include: * AFDA $37,400 AFDA $33,400 AFDA $7,400 AFDA $3,400 None of the above

Accounts Receivable of Zein Company during 2020 was $90,000, it's Sales Revenue was $750,000, Sales Return and Allowance $100,000 and Sales Discount $60,000. AFDA has a credit balance of $2,000.The adjusting entry at December 31, 2020 assuming that the expected bad debts are 6% of Accounts Receivable will include: * AFDA $37,400 AFDA $33,400 AFDA $7,400 AFDA $3,400 None of the above

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter6: Cash And Receivables

Section: Chapter Questions

Problem 6MC: Prior to adjustments, Barrett Companys account balances at December 31, 2019, for Accounts...

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McKinney Co. estimates its uncollectible accounts as a percentage of credit sales. McKinney made credit sales of 1,500,000 in 2019. McKinney estimates 2.5% of its sales will be uncollectible. Prepare the journal entry to record bad debt expense for McKinney at the end of 2019.
Dortmund Stockyard reports $896,000 in credit sales for 2018 and $802,670 in 2019. It has a $675,000 accounts receivable balance at the end of 2018, and $682,000 at the end of 2019. Dortmund uses the balance sheet method to record bad debt estimation at 8% during 2018. To manage earnings more favorably, Dortmund changes bad debt estimation to the income statement method at 6% during 2019. A. Determine the bad debt estimation for 2018. B. Determine the bad debt estimation for 2019. C. Describe a benefit to Dortmund Stockyard in 2019 as a result of its earnings management.
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Prior to adjustments, Barrett Companys account balances at December 31, 2019, for Accounts Receivable and the related Allowance for Doubtful Accounts were 1,200,000 and 60,000, respectively. An aging of accounts receivable indicated that 106,000 of the December 31, 2019, receivables may be uncollectible. The net realizable value of accounts receivable at December 31, 2019, was: a. 1,034,000 b. 1,094,000 c. 1,140,000 d. 1,154,000
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