181-365 days past dueOver 365 days past dueTotalDateDec. 31Date3,1001,250b. If Allowance for Doubtful Accounts has a credit balance of $9,700, journalize the adjusting entry for the bad debt expense for the year. Ifan amount box does not require an entry, leave it blank.AccountDebit CreditDec. 31$722,450Account60.00%95.00%1,7361,8601,18830,111c. If Allowance for Doubtful Accounts has a debit balance of $9,700, journalize the adjusting entry for the bad debt expense for the year. Ifan 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 thenearest dollar.Age IntervalNot past due1-30 days past due31-60 days past due61-90 days past due91-180 days past due181-365 days past dueOver 365 days past dueTotalDateBalanceAccount$550,00096,50043,75022,2505,6003,1001,250$722,450Estimate ofUncollectibleAccountsPercentage2.50%4.00%9.50%16.00%31.00%60.00%95.00%Estimate ofUncollectibleAccountsAmount$13,7503,8604,1573,5601,7361,8601,188b. If Allowance for Doubtful Accounts has a credit balance of $9,700, journalize the adjusting entry for the bad debt expense for the year. Ifan amount box does not require an entry, leave it blank.Debit Credit30,111

The bad debt expense is recorded to increase the expense whereas the allowance for doubtful account…

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. an amount box does not require an entry, leave it blank. Date Account Debit Credit Dec. 31 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. Account Debit Credit Date Dec. 31

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. an amount box does not require an entry, leave it blank. Date Account Debit Credit Dec. 31 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. Account Debit Credit Date Dec. 31

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

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.$622,324
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 $7,470. 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 4
Prepare 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.
Under the allowance method, when $600 is authorised to be written off, the journal entry would be Select one: a. Debit Accounts Receivable $600, Credit Allowance for Doubtful Debts $200 b. Debit Bad Debts Expense $600, Credit Accounts Receivable $600 c. Debit Bad Debts Expense $600, Credit Allowance for Doubtful Debts $600 d. Debit Allowance for Doubtful Debts $600, Credit Accounts Receivable $600
The credit balance in Allowance for Uncollectible is P14,300 prior to the adjusting entries at the end of the period. The aging of accounts indicates that an allowance of P78,900 is needed. The amount of expense to record is a. P14,300. b. P64,600. c.P78,900. d. P93,200.
Under the direct write-off method of accounting for uncollectible accounts, Bad Debt Expense is recorded Oa. when a credit sale is past due O b. whenever a predetermined amount of credit sales has been made Oc. when an account is determined to be worthless O d. at the end of each accounting period
journalize the adjusting entry at December 31, assuming Macarty determines that Matisse's $900 balance is uncollectible. (b) If Allowance for Doubtful Accounts has a credit balance of $1,100 in the trial balance, journalize the adjusting entry at December 31, assuming bad debts are expected to be 10% of accounts receivable. veb-08.000.SI (c) If Allowance for Doubtful Accounts has a debit balance of $500 in the trial balance, journalize the adjusting entry at December 31, assuming bad debts are expected to be 8% of accounts receivable. 33 E8-5 Godfreid Company has accounts receivebie of 395,400 at March 31, 2017. Credit terms are 2/10, n/30. At March 31, 2017, there is a $2,100 credit balance in Allowance for Doubtful Accounts prior to adjustment. The corpany uses the percentage-of-receivables basis for estimating uncollectible accounts. The company's estimates of bad debts are as shown below. Determin prepare t (LO 2), AF d ok) storyand p o teersl2la lgtantg boviooo Balance, March 31…
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.$743
Dd.22.
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 $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 balance
At the beginning of the year, the balance in Allowance for Doubtful Accounts is a credit of $752. During the year, previously written off accounts of $141 are reinstated and accounts totaling $710 are written off as uncollectible. The end-of-year balance (before adjustment) in Allowance for Doubtful Accounts should be a.$183 b.$710 c.$141 d.$752
One company has estimated that $3150 of its accounts receiable will be uncollectible. If allownace for doubtful accounts already has a credit balance of $1102, and the percentage of receivables method is used, it sadjustment to recrod for the period will require a debit to what for what amount?