On January 1, 2017, the balance in Great Lakes Co.'s Allowance for Bad Debts account was $15,600. During the year, a total of $10,500 of delinquent accounts receivable were written off as bad debts. The balance in the Allowance for Bad Debts account at December 31, 2017, was $21,900. What was the total amount of bad debts expense recognized during the year? As a result of a comprehensive analysis, it is determined that the December 31, 2017, balance of Allowance for Bad Debts should be $18,900. Show, in general journal format the adjustment required.

On January 1, 2017, the balance in Great Lakes Co.'s Allowance for Bad Debts account was $15,600. During the year, a total of $10,500 of delinquent accounts receivable were written off as bad debts. The balance in the Allowance for Bad Debts account at December 31, 2017, was $21,900. What was the total amount of bad debts expense recognized during the year? As a result of a comprehensive analysis, it is determined that the December 31, 2017, balance of Allowance for Bad Debts should be $18,900. Show, in general journal format the adjustment required.

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter9: Accounting For Receivables

Section: Chapter Questions

Problem 4PB: Bristax Corporation recorded $1,385,660 in credit sales for the year, and $732,410 in accounts...

See similar textbooks

Similar questions

At the end of its first year operations , December 31, 2014, Darden Inc. reported the following information. Accounts receivable , net of allowance for doubtful accounts (950,000) Customer accounts written off as uncollectible during 2014 (24,000) Bad debt expense for 2014 (84,000) What should be the balance in accounts receivable at December 31, 2014 , before subtracting the allowance for doubtful?
At the close of its first year of operations, December 31, 2017, Ming Company had accounts receivable of $1,620,000, after deducting the related allowance for doubtful accounts. During 2017, the company had charges to bad debt expense of $270,000 and wrote off, as uncollectible, accounts receivable of $120,000. What should the company report on its balance sheet at December 31, 2017, as accounts receivable before the allowance for doubtful accounts?
On January 1, 2017, the balance in Great Lakes Co.'s Allowance for Bad Debts account was $15,600. During the year, a total of $10,500 of delinquent accounts receivable were written off as bad debts. The balance in the Allowance for Bad Debts account at December 31, 2017, was $21,900. Question: As a result of comprehensive analysis, it is determined that the December 31, 2017, balance of Allowance for Bad Debts should be $18,900. Show, in general journal format the adjustment required.
On December 31, 2015, the accounts receivable account and allowance for doubtful accounts of Beckman Corporation have the balances of $600,000 debit and $5,000 debit, respectively. Net sales for the year 2015 are $1,000,000. The company uses percentage of receivables method to account for bad debts and the percentage for estimated uncollectible is 5%. The amount of adjusting entry for bad debt expense that would be recorded on December 31, 2015 is: a. $30,000 b. $35,000 c. $50,000 d. $29,750
At the beginning of 2017, Miyazaki Company's Accounts Receivable balance was $105,000, and the balance in Allowance for Doubtful Accounts was $1,950. Miyazaki's sales in 2017 were $787,500, 80% of which were on credit. Collections on account during the year were $502,500. The company wrote off $3,000 of uncollectible accounts during the year. Identify and analyze the adjustments to recognize bad debts assuming that amounts expected to be uncollectible are 6% of the year-end accounts receivable.
The Manda Panda Company uses the allowance method to account for bad debts. At the beginning of 2018, theallowance account had a credit balance of $75,000. Credit sales for 2018 totaled $2,400,000 and the year-endaccounts receivable balance was $490,000. During this year, $73,000 in receivables were determined to be uncollectible. Manda Panda anticipates that 3% of all credit sales will ultimately become uncollectible. The fiscal yearends on December 31.Required:1. Does this situation describe a loss contingency? Explain.2. What is the bad debt expense that Manda Panda should report in its 2018 income statement?3. Prepare the appropriate journal entry to record the contingency.4. What is the net accounts receivable value Manda Panda should report in its 2018 balance sheet?
On December 31, 2017, when its accounts receivable were $252,000 and its account Allowance for Doubtful Accounts had an unadjusted debit balance of $1,700, Oak Ridge Corp. estimated that $14,100 of its accounts receivable would become uncollectible, and it recorded the bad debts adjusting entry. On May 11, 2018, Oak Ridge determined that Fei Ya Cheng’s account was uncollectible and wrote off $1,600. On November 12, 2018, Cheng paid the amount previously written off. What is the carrying amount of the receivables on (1) December 31, 2017; (2) May 11, 2018; and (3) November 12, 2018, assuming that the total amount of accounts receivable of $252,000 is unchanged on each of these three dates except for any changes recorded above.
Bad debts analysis-Allowance account On January 1, 2013, the balance hera Co.'s Allowance for Bad Debts account was $4,860. During the year, a total of $11,950 of delinquent accounts receivable was written off as bad debts. The balance in the Allowance for Bad Debts account at December 31, 2013, was a $5,240. Required: What was the total amount of bad debts expense recognized during the year? (Hint: Make a T-account for the Allowance for Bad Debts account.) . As a result of a comprehensive analysis, it is determined that the December 31, 2013, balance of Allowance for Bad Debts should be $11,600. Show in the hori-
The Accounts Receivable balance and Allowance for Bad Debts for Signature Lamp Company at December 31, 2017, was $10,800 and $2,000 (credit balance), respectively. During 2018, Signature Lamp Company completed the following transactions:a. Sales revenue on account, $273,400 (ignore Cost of Goods Sold).b. Collections on account, $223,000.c. Write-offs of uncollectibles, $5,900. Post the transactions to the Accounts Receivable, Allowance for Bad Debts, and Bad Debts Expense T-accounts, and determine the ending balance of each account. Journalize Signature Lamp’s adjustment to record bad debts expense assuming Hilltop estimates bad debts as 10% of accounts receivable. Post the adjustment to the appropriate T-accounts.
On December 31, 2016, Vesta Company’s accounts receivable balance was of $1,200,000, and an analysis of their accounts receivable suggests that the Allowance for Doubtful Accounts should be 2% of accounts receivable. The balance in the Allowance for Doubtful Accounts on January 1, 2016 was $23,880 (credit). During the year 2016, Triton wrote off $25,800 of bad debts. What amount should be reported as the Bad debt expense for the year 2016? A) $24,800 B) $25,920 C) $24,000 D) $22,080
The following information is extracted from Shelton Corporation’s accounting records at the beginning of 2016: Accounts Receivable $63,000 Allowance for Doubtful Accounts 1,400 (credit) During 2016, sales on credit amounted to $575,000, $557,400 was collected on outstanding receivables and $2,600 of receivables were written off as uncollectible. On December 31, 2016, Shelton estimates its bad debts to be 4% of the outstanding gross accounts receivable balance. Required: 1. Prepare the journal entry necessary to record Shelton’s estimate of bad debt expense for 2016. 2. Prepare the Accounts Receivable section of Shelton’s December 31, 2016, balance sheet. 3. Compute Shelton’s receivables turnover. (Round to one decimal place.) 4. If Sheldon uses IFRS, what might be the heading for the accounts receivable section in Requirement 2?
Novak Corp. has accounts receivable of $90,300 at March 31, 2017. Credit terms are 2/10, n/30. At March 31, 2017, there is a $2,284 credit 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 shown below. Balance, March 31 Estimated PercentageUncollectible Age of Accounts 2017 2016 Current $61,700 $74,140 2 % 1–30 days past due 12,600 8,520 5 31–90 days past due 9,200 2,260 28 Over 90 days past due 6,800 1,160 49 $90,300 $86,080 Determine the total estimated uncollectibles. The total estimated uncollectibles $Enter a dollar amount Prepare the adjusting entry at March 31, 2017, to record bad debt expense. (Credit account…