Crane Company has accounts receivable of $99,216 at March 31, 2027. At March 31, 2027, there is a $ 2,184 balance in Allowance for Doubtful Accounts prior to adjustment. The company uses the percentage - of-receivables basis for estimating uncollectible accounts. The company's estimates of bad debts are as follows.Determine the total estimated uncollectibles for 2027. The total estimated uncollectibles (b) Indicate the amount to record as bad debt expense on March 31, 2027. Determine the total estimated uncollectibles for 2027. The total estimated uncollectibles $ (b) * Your answer is incorrect. Indicate the amount to record as bad debt expense on March 31, 2027. Bad Debt Expense $ 9016 2254 Attempts: 2 of 2 used

Ervin Company uses the allowance method to account for uncollectible accounts receivable. The allowance account is adjusted based on bad debt expense as a percentage of credit sales. For 2024, net credit sales totaled $5,900,000, and the estimated bad debt percentage is 1.50%. No previously written-off accounts receivable were reinstated during 2024. The allowance for uncollectible accounts had a credit balance of $56,000 at the beginning of 2024 and $47,000, after adjusting entries, at the end of 2024. Required: 1. What is bad debt expense for 2024 as a percent of net credit sales? 2. Assume Ervin makes no other adjustment of bad debt expense during 2024. Determine the amount of accounts receivable written off during 2024. 3. If the company uses the direct write-off method, what would bad debt expense be for 2024?

Alpha Security Ltd commenced operations on 1 July 2021. By the end of the first year of operations, the accountant identified that $2,673 (GST Inclusive) of receivables would be uncollectible and wrote these debts off as bad debts using the direct write off method.     In addition to reviewing the business’ credit policies, management decided to adopt the allowance method for accounting for bad debts. On this directive, the accountant established an Allowance for Doubtful Debts amounting to $3,940 at 30 June 2022.   During the financial year ended 30 June 2023, receivables totalling $3,432 (GST Inclusive) were deemed uncollectible and were written off as bad. Furthermore, $473 (GST Inclusive) was recovered in respect of bad debts previously written off. The total balance of receivables at 30 June 2023 after accounting for bad debts amounted to $120,549 (GST Inclusive, this amount is after the bad debts had been written off). After discussions regarding the level of bad debts after the…

Raintree Cosmetic Company sells its products to customers on a credit basis. An adjusting entry for bad debt expense is recorded only at December 31, the company’s fiscal year-end. The 2020 balance sheet disclosed the following:      Current assets:     Receivables, net of allowance for uncollectible accounts of $39,000 $ 477,000     During 2021, credit sales were $1,795,000, cash collections from customers $1,875,000, and $44,000 in accounts receivable were written off. In addition, $3,900 was collected from a customer whose account was written off in 2020. An aging of accounts receivable at December 31, 2021, reveals the following:     Percentage of Year-End Percent Age Group Receivables in Group Uncollectible 0−60 days 70 % 5 % 61−90 days 20   15   91−120 days 5   20   Over 120 days 5   40     Required:1. Prepare summary journal entries to account for the 2021 write-offs and the collection of the receivable previously written off.2. Prepare the year-end…

On December 31, 2021, when its Allowance for Doubtful Accounts had a debit balance of $1,293, Pharoah Company estimates that 8% of its accounts receivable balance of $88,900 will become uncollectible and records the necessary adjustment to Allowance for Doubtful Accounts. On May 11, 2022, Pharoah Company determined that B. Jared’s account was uncollectible and wrote off $1,166. On June 12, 2022, Jared paid the amount previously written off.Prepare the journal entries on December 31, 2021, May 11, 2022, and June 12, 2022. (Credit account titles are automatically indented when amount is entered. Do not indent manually. Record journal entries in the order presented in the problem.)

14. On December 31, 2021, Andy Inc. has a debit balance of $1,500 for the Allowance for Uncollectible Accounts before any year-end adjustment. Andy Inc. also has the following information for its accounts receivable and the estimated percentages of bad debts for different past-due amounts: A. B. C. D. Age Group (days past due) 0-30 31-60 61-90 $6,500. $1,500. $5,000. $8,000. Accounts Receivable $50,000 $20,000 $10,000 Estimated Percent Uncollectible 5% What is the amount of bad debt expense to be reported on Andy Inc.'s financial statements for 2021 using the aging method? 10% 20%

As of January 1, 2024, Barley Company had a credit balance of $520,000 in its allowance for uncollectible accounts. Based on experience, 2% of Barley’s gross accounts receivable have been uncollectible. During 2024, Barley wrote off $650,000 of accounts receivable. Barley’s gross accounts receivable as December 31, 2024 is $18,000,000. How much bad debt expense should Barley record for 2024?

Johnson Company calculates its allowance for uncollectible accounts as 20% of its ending balance in gross accounts receivable. The allowance for uncollectible accounts had a credit balance of $21,000 at the beginning of 2021. No previously written-off accounts receivable were reinstated during 2021. At 12/31/2021, gross accounts receivable totaled $350,200, and prior to recording the adjusting entry to recognize bad debts expense for 2021, the allowance for uncollectible accounts had a debit balance of 38,400 Required: 1. What was the balance in gross accounts receivable as of 12/31/2020? 2. What journal entry should Johnson record to recognize bad debt expense for 2021? 3. Assume Johnson made no other adjustment of the allowance for uncollectible accounts during 2021. Determine the amount of accounts receivable written off during 2021. 4. If Johnson instead used the direct write-off method, what would bad debt expense be for 2021? Required 1 Required 2 Required 3 Required 4 What was…

At December 31, 2021, Larkspur Company had a credit balance of $16,200 in Allowance for Doubtful Accounts. During 2022, Larkspur wrote off accounts totaling $13,800. One of those accounts ($3,100) was later collected. At December 31, 2022, an aging schedule indicated that the balance in Allowance for Doubtful Accounts should be $27,300.Prepare journal entries to record the 2022 transactions of Larkspur Company. (Credit account titles are automatically indented when amount is entered. Do not indent manually.) Account Titles and Explanation Debit Credit enter an account title to record amount written off enter a debit amount enter a credit amount enter an account title to record amount written off enter a debit amount enter a credit amount (To record amount written off)     enter an account title to reverse write-off enter a debit amount enter a credit amount enter an account title to reverse write-off enter a debit amount enter a credit…

Jars Plus recorded $861,430 in credit sales for the year and $488,000 in accounts receivable. The uncollectible percentage is 2.3% for the income statement method, and 3.6% for the balance sheet method. Record the year-end adjusting entry for 2018 bad debt using the income statement method. Record the year-end adjusting entry for 2018 bad debt using the balance sheet method. Assume there was a previous debit balance in Allowance for Doubtful Accounts of $10,220, record the year-end entry for bad debt using the income statement method, and then the entry using the balance sheet method. Assume there was a previous credit balance in Allowance for Doubtful Accounts of $5,470, record the year-end entry for bad debt using the income statement method, and then the entry using the balance sheet method.