At year-end December 31, Chan Company estimates its bad debts as 0.70% of its annual credit sales of $882,000. Chan records its bad debts expense for that estimate. On the following February 1, Chan decides that the $441 account of P. Park is uncollectible and writes it off as a bad debt. On June 5, Park unexpectedly pays the amount previously written off. Determine the impact of the December 31, February 1, and June 5 transactions on the accounting equation. For each transaction, indicate whether there would be an increase, decrease, or no effect, for Assets Liabilition and Fau Note: Leave no cells blank

Innovative Tech Inc. (ITI) has been using the percentage of credit sales method to estimate bad debts. During November, ITI sold services on account for $130,000 and estimated that 3/4 of 1 percent of those sales would be uncollectible. Required: 1. Prepare the November adjusting entry for bad debts. 2. Starting in December, ITI switched to using the aging method. At its December 31 year-end, total Accounts Receivable is $89,900, aged as follows: (1) 1–30 days old, $74,000; (2) 31–90 days old, $12,000; and (3) more than 90 days old, $3,900. The average rate of uncollectibility for each age group is estimated to be (1) 12 percent, (2) 24 percent, and (3) 48 percent, respectively. Prepare a schedule to estimate an appropriate year-end balance for the Allowance for Doubtful Accounts. 3. Before the end-of-year adjusting entry is made, the Allowance for Doubtful Accounts has a $1,550 credit balance at December 31. Prepare the December 31 adjusting entry. 4. Show how the various accounts…

Required information [The following information applies to the questions displayed below.] At year-end December 31, Chan Company estimates its bad debts as 1.00% of its annual credit sales of $608,000. Chan records its bad debts expense for that estimate. On the following February 1, Chan decides that the $304 account of P. Park is uncollectible and writes it off as a bad debt. On June 5, Park unexpectedly pays the amount previously written off. Prepare Chan's journal entries to record the transactions of December 31, February 1, and June 5. View transaction list

At the beginning of the year, Mitchum Enterprises allows for estimated uncollectible accounts of $21,500. By the end of the year, actual bad debts total $23,500.   Determine the financial statement effects of writing off an uncollectible account. (Amounts to be deducted should be entered with minus sign.)

On December 31 of the current year, the unadjusted trial balance of a company using the percent of receivables method to estimate bad debt included the following: Accounts Receivable, debit balance of $95,250; Allowance for Doubtful Accounts, credit balance of $921; credit sales of $420,000. What amount should be debited to Bad Debts Expense, assuming 6% of outstanding accounts receivable at the end of the current year are estimated to be uncollectible? O $6,636. O $5,660. O $4,794. O $5,715. O $5,770.

Required information [The following information applies to the questions displayed below.) At year-end December 31, Chan Company estimates its bad debts as 0.70% of its annual credit sales of $729,000. Chan records its bad debts expense for that estimate. On the following February 1, Chan decides that the $365 account of P. Park is uncollectible and writes it off as a bad debt. On June 5, Park unexpectedly pays the amount previously written off. Prepare Chan's journal entries to record the transactions of December 31, February 1, and June 5.

At the end of its annual accounting period, Midi Company estimated its bad debts as 0.74% of its $1,760,000 of credit sales made during the year. On December 31, Midi made an addition to its Allowance for Doubtful Accounts equal to that amount. On the following February 1, management decided that the $2,600 account of Catherine Hicks was uncollectible and wrote it off as a bad debt. Four months later, on June 5, Hicks unexpectedly paid the amount previously written off. Give the journal entries required to record these transactions. View transaction list es Journal entry worksheet 1 2 3 4 Record the entry for estimated bad debts. Note: Enter debits before credits. Date Dec 31 General Journal Debit Credit

Millennium Associates records bad debt using the allowance, income statement method. They recorded $299,420 in accounts receivable for the year, and $773,270 in credit sales. The uncollectible percentage is 3.2%. On February 5, Millennium Associates identifies one uncollectible account from Molar Corp in the amount of $1,330. On April 15, Molar Corp unexpectedly pays its account in full. Record journal entries for the following. Year-end adjusting entry for 2017 bad debt February 5, 2018 identification entry Entry for payment on April 15, 2018

eBook Millennium Associates records bad debt using the allowance, income statement method. They recorded $358,420 in accounts receivable for the year, and $794,270 in credit sales. The uncollectible percentage is 3.6%. On February 5, Millennium Associates identifies one uncollectible account from Molar Corp in the amount of $1,530. On April 15, Molar Corp unexpectedly pays its account in full. Record journal entries for the following. A. Year-end adjusting entry for 2017 bad debt B. February 5, 2018 identification entry C. Entry for payment on April 15, 2018

At the end of the year, two similar companies were in the process of calculating bad debt expense for the year. Each company had credit sales of P 1,000,000 and a debit balance in Allowance for Uncollectible Accounts of P 2,000 before any year-end adjustment. The amount of accounts receivable written off during the year for both companies was P 8,000. The balance of Accounts Receivable is P 180,000. A Company estimates that 5% of accounts receivable will not be collected over the next year. B Company estimates that 5% of credit sales will not be collected over the next year. Required: For each company, determine: a) The uncollectible accounts expense for the year. b) The adjusting entry to be made of December 31. c) The balance in Allowance for Doubtful Accounts after adjustment