At the end of the current year, using the aging of accounts receivable method, management estimated that $23,750 of the accounts receivablebalance would be uncollectible. Prior to any year-end adjustments, the Allowance for Doubtful Accounts had a credit balance of $455. Whatadjusting entry should the company make at the end of the current year to record its estimated bad debts expense?Multiple ChoiceBad Debts Expense23,295Allowance for Doubtful Accounts23,295ОAccounts Receivable24,205Allowance for Doubtful Accounts24,205ОBad Debts Expense24,205Allowance for Doubtful Accounts24,205Bad Debts ExpenseAllowance for Doubtful AccountsAccounts ReceivableBad Debts Expense23,75023,75023,750455 Bad Debts ExpenseAllowance for Doubtful Accounts23,29523,295Accounts Receivable24,205Allowance for Doubtful Accounts24,205Bad Debts Expense24,205Allowance for Doubtful Accounts24,205Bad Debts ExpenseAllowance for Doubtful AccountsAccounts ReceivableBad Debts ExpenseSales23,75023,75023,75045524,205

Step 1: Required allowance for bad debts If you use the aging of account receivables method, the 3%…

Answered: At the end of the current year, using…

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter9: Accounting For Receivables

Section: Chapter Questions

Problem 5Q: Which account type is used to record bad debt estimation and is a contra account to Accounts...

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QUESTION 10 Match the term on the left to the appropriate classification or description on the right. v Allowance for doubtful accounts A. Discounts for early payment of A/R, recorded as contra- revenues v Net accounts receivable B. An account that the firm credits when it records bad debt v Sales discounts expense v Write-offs of A/R C. Entries that reduce gross accounts receivable D. Gross accounts receivable minus Allowance for doubtful accounts
PROGRAMS v SELF-DEVELOPMENT E-LIBRARY ZAIN HANDBOOKS 11 12 13 14 15 When recording bad debt expense under the allowance method, at the end of the accounting period? is credited, and is debited O a accounts receivable; bad debt expense. O b. allowance for doubtfut accounts accounts receivable O c. bad debt expense; allowance for doubtful accounts O d. allowance for doubtful accounts: bad debtexpense. Hc POCOPHONE SHOT ON POCOPHONE F1 10:04 11/2/7 10
Question 7
Select the best answer for the question 12. What account will be debited to record an accounts receivable amount considered to be a bad debt if the direct write-off method of accounting is used? O A. Cash OB. Allowance for Doubtful Accounts OC. Sales OD. Uncollectible Accounts Expense Mark for review (Will be highlighted on the review page) revious Questio Next Question >> Jm
19-Under allowance method,the journal entry to record uncollectible accounts expense is a. Dr. Accounts Receivable and Cr. Bad debts expense b. Dr. Allowance for Doubtful Accounts and Cr. Bad debts Expense c. Dr. Bad debts expense and Cr. Allowance for Doubtful Accounts d. Dr. Bad debts expense and Cr. Accounts Receivable
Question 7 of 18 Which of the following methods of determining bad debt expense best achieves the matching concept? Select the correct response: Aging of accounts receivable Percentage of ending accounts receivable Direct write-off Percentage of net credit sales < Previous
8- Under allowance method,the journal entry to record uncollectible accounts expense is a. Dr. Allowance for Doubtful Accounts and Cr. Bad debts Expense b. Dr. Bad debts expense and Cr. Accounts Receivable c. Dr. Accounts Receivable and Cr. Bad debts expense d. Dr. Bad debts expense and Cr. Allowance for Doubtful Accounts
A6 What are the advantages and disadvantages of using the following Allowance for Expected Credit Losses (AECL) estimates? 1) AECL based of 3rd party credit ratings and Aging of accounts receivab 2) AECL based on Customer Response Score (CR 3) AECL based on write-off history and regionS)le
An allowance doubtful debts account is created to estimate ___. Select one: A. the expected number of debtors B. the expected number of creditors C. the amount of expected bad debts recovered D. the amount of expected bad debts
A B UD C |7. If bad debts expense is determined by estimating uncollectible accounts receivable, the entry to record the write-off of a specific uncollectible account would decrease: allowance for uncollectible accounts. net income. net book value of accounts receivable. bad debts expense. 8. If management intentionally underestimates bad debts expense, then net income is A overstated and assets are understated. B understated and assets are overstated C understated and assets are understated. D overstated and assets are overstated 9. Which of these items will not appear in the retained earnings statement? A Net Loss B Prior period adjustment, net of taxes с Cumulative effect on prior years of a change in accounting principles, net of tax D Dividends. E All of the above appear in the statement of retained earnings
The difference between accounts receivable and allowance for doubtful accounts is O a. the bad debt expense O b. the net realizable value of accounts receivable O c. the accounts receivable turnover O d. none of these choices
Ee 152.

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