![FINANCIAL ACCOUNTING](https://compass-isbn-assets.s3.amazonaws.com/isbn_cover_images/9781259964947/9781259964947_smallCoverImage.jpg)
FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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![181-365 days past due
Over 365 days past due
Total
Date
Dec. 31
Date
3,100
1,250
b. If Allowance for Doubtful Accounts has a credit balance of $9,700, journalize the adjusting entry for the bad debt expense for the year. If
an amount box does not require an entry, leave it blank.
Account
Debit Credit
Dec. 31
$722,450
Account
60.00%
95.00%
1,736
1,860
1,188
30,111
c. If Allowance for Doubtful Accounts has a debit balance of $9,700, journalize the adjusting entry for the bad debt expense for the year. If
an amount box does not require an entry, leave it blank.
Debit Credit
↑](https://content.bartleby.com/qna-images/question/0d56d87b-1ee4-40b0-9831-f06655864a4b/5097f2bd-d08e-4255-bd42-1e17b4d943ab/i4dsn3j_thumbnail.jpeg)
Transcribed Image Text:181-365 days past due
Over 365 days past due
Total
Date
Dec. 31
Date
3,100
1,250
b. If Allowance for Doubtful Accounts has a credit balance of $9,700, journalize the adjusting entry for the bad debt expense for the year. If
an amount box does not require an entry, leave it blank.
Account
Debit Credit
Dec. 31
$722,450
Account
60.00%
95.00%
1,736
1,860
1,188
30,111
c. If Allowance for Doubtful Accounts has a debit balance of $9,700, journalize the adjusting entry for the bad debt expense for the year. If
an amount box does not require an entry, leave it blank.
Debit Credit
↑
![A partially completed aging of receivables schedule for Lindy Designs follows:
a. Determine the amount estimated to be uncollectible by completing the aging of receivables schedule. Round calculations to the
nearest dollar.
Age Interval
Not past due
1-30 days past due
31-60 days past due
61-90 days past due
91-180 days past due
181-365 days past due
Over 365 days past due
Total
Date
Balance
Account
$550,000
96,500
43,750
22,250
5,600
3,100
1,250
$722,450
Estimate of
Uncollectible
Accounts
Percentage
2.50%
4.00%
9.50%
16.00%
31.00%
60.00%
95.00%
Estimate of
Uncollectible
Accounts
Amount
$
13,750
3,860
4,157
3,560
1,736
1,860
1,188
b. If Allowance for Doubtful Accounts has a credit balance of $9,700, journalize the adjusting entry for the bad debt expense for the year. If
an amount box does not require an entry, leave it blank.
Debit Credit
30,111](https://content.bartleby.com/qna-images/question/0d56d87b-1ee4-40b0-9831-f06655864a4b/5097f2bd-d08e-4255-bd42-1e17b4d943ab/oskfcx7_thumbnail.jpeg)
Transcribed Image Text:A partially completed aging of receivables schedule for Lindy Designs follows:
a. Determine the amount estimated to be uncollectible by completing the aging of receivables schedule. Round calculations to the
nearest dollar.
Age Interval
Not past due
1-30 days past due
31-60 days past due
61-90 days past due
91-180 days past due
181-365 days past due
Over 365 days past due
Total
Date
Balance
Account
$550,000
96,500
43,750
22,250
5,600
3,100
1,250
$722,450
Estimate of
Uncollectible
Accounts
Percentage
2.50%
4.00%
9.50%
16.00%
31.00%
60.00%
95.00%
Estimate of
Uncollectible
Accounts
Amount
$
13,750
3,860
4,157
3,560
1,736
1,860
1,188
b. If Allowance for Doubtful Accounts has a credit balance of $9,700, journalize the adjusting entry for the bad debt expense for the year. If
an amount box does not require an entry, leave it blank.
Debit Credit
30,111
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- After the accounts are adjusted and closed at the end of the fiscal year, Accounts Receivable has a balance of $622,324 and Allowance for Doubtful Accounts has a balance of $20,510. What is the net realizable value of the accounts receivable? a.$601,814 b.$642,834 c.$20,510 d.$622,324arrow_forwardDetermine 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 $7,470. Amount added $fill in the blank 1 Ending balance $fill in the blank 2 b. Credit balance of $410 in Allowance for Doubtful Accounts just prior to adjustment. Bad debt expense is estimated at 2% of credit sales, which totaled $976,000 for the year. Amount added $fill in the blank 3 Ending balance $fill in the blank 4arrow_forwardPrepare the year-end adjusting entry for bad debts according to each of the following situations: Bad debt expense is estimated by adjusting the allowance for uncollectible accounts to the balance that reduces the carrying value of accounts receivable to the amount of cash expected to be collected. The allowance for uncollectible accounts is estimated to be 10% of the year-end balance in accounts receivable. Bad debt expense is estimated by adjusting the allowance for uncollectible accounts to the balance that reduces the carrying value of accounts receivable to the amount of cash expected to be collected. The allowance for uncollectible accounts is determined by an aging of accounts receivable.arrow_forward
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- At the beginning of the year, the balance in the Allowance for Doubtful Accounts is a credit of $743. During the year, $344 of previously written off accounts were reinstated and accounts totaling $756 are written off as uncollectible. The end-of-year balance (before adjustment) in the Allowance for Doubtful Accounts should be the one listed below. a.$331 b.$756 c.$344 d.$743arrow_forwardDd.22.arrow_forwardDetermine 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 $300 in Allowance for Doubtful Accounts just prior to adjustment. Using the aging method, the balance of Allowance for Doubtful Accounts is estimated as $8,500. Amount added $fill in the blank 1 Ending balance $fill in the blank 2 b. Credit balance of $500 in Allowance for Doubtful Accounts just prior to adjustment. Bad debt expense is estimated at 2% of credit sales, which totaled $1,000,000 for the year. Amount added $fill in the blank 3 Ending balancearrow_forward
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