FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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Assume that Mingenback Company estimates its
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- HIRDT CO. USES THE PERCENTAGE-OF- RECEIVABLES BASIS TO RECORD BAD DEBT EXPENSE AND CONCLUDES THAT 3% OF ACCOUNTS RECEIVABLE WILL BECOME UNCOLLECTIBLE. ACCOUNTS RECEIVABLE ARE $401,100 AT THE END OF THE YEAR, AND THE ALLOWANCE FOR DOUBTFUL ACCOUNTS HAS A CREDIT BALANCE OF $3,110. IF THE ALLOWANCE FOR DOUBTFUL ACCOUNTS HAD A DEBIT BALANCE OF $890 INSTEAD OF A CREDIT BALANCE OF $3,110, PREPARE THE ADJUSTING JOURNAL ENTRY FOR BAD DEBT EXPENSE.arrow_forwardZebra Company reported the following for 2022: Credit sales = $419884 Accounts Receivable = $16376 Allowance for Doubtful Accounts = $291 (credit balance) Bad Debt is estimated at 0.31 of 1% of sales After the adjusting entry is recorded, what is the value of Allowance for Doubtful Accounts? ROUND TO THE NEAREST DOLLARarrow_forwardThe company estimates 1% of sales revenue should be used to estimate for bad debt expense. what is the amount and what accountsarrow_forward
- I'm not so sure about my answer please help me.....arrow_forwardBidiyah Co. estimates that RO 6,500 of its accounts receivable to be uncollectible. If Allowance for Doubtful Accounts has a RO 1,200 debit balance, the company should record a: Select one: O a. None of the answers are correct O b. debit to Bad Debt Expense for RO 5,300. O c credit to Allowance for Doubtful Accounts for RO 6,500. Od. debit to Allowance for Doubtful Accounts for RO 5,300. O e. credit to Bad Debt Expense for RO 7,700.arrow_forwardAl Khuwair Corporation's has the following data: Accounts Receivable RO 520,000 Allowance for Doubtful Accounts (debit) 5,500 Bad debts are 8% of outstanding receivables. The company should record bad debt expense as: Select one: a. RO 440 b. RO 41,600 c. RO 525,500 d. None of the answers are correct e. RO 47,100arrow_forward
- 5. The Adams Company had total credit sales for the year of $1,500,000. As of year end, but before estimating bad debts, the company had a $130,000 debit balance in accounts receivable and a $500 credit balance in the allowance for uncollectible accounts. If the Adams Company estimates bad debts as 4% of ending accounts receivable, the journal entry of the Adams Company will be: a. Bad debt expense Allowance for doubtful accounts b. Bad debt expense Accounts receivable c. Bad debt expense Accounts receivable d. Bad debt expense Allowance for doubtful accounts $4,700 $5,200 $5,200 $5,700 $4,700 $5,200 $5,200 $5,700arrow_forwardEarrings Depot records bad debt using the allowance, balance sheet method. They recorded $97,440 in accounts receivable for the year and $288,550 in credit sales. The uncollectible percentage is 5.5%. What is the bad debt estimation for the year using the balance sheet method?arrow_forwardUSE TGHE FOLLOWING TO SOLVE FOR QUESTION7 ONLY Tooele Company’s controller estimated bad debt expense using the percentage of accountsreceivable method. Total sales for the year were $500,000 of which 250,000 are on account.The ending balance in accounts receivable was $100,000. An examination of the outstandingaccounts at the end of the year indicates that approximately 12 percent of these accounts willultimately prove to be uncollectible. Before any adjusting entries, the balance in theAllowance for Doubtful Accounts is $700 (CREDIT). Which is part of the correct adjustingentry to record bad debt expense for the year?(The Allowance for Doubtful Accounts is also known as the Allowance for Bad Debts or theAllowance for Uncollectible Accounts.)a. CREDIT Allowance for Bad Debts for $11,300b. DEBIT Allowance for Bad Debts for $11,300c. CREDIT Allowance for Bad Debts for $12,000d. CREDIT Allowance for Bad Debts for $12,700e. DEBIT Allowance for Bad Debts for $14,700 5. Use the…arrow_forward
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