Part AAlbert Trading Limited used the statement of financial position approach to estimate theimpairment loss of receivable. An aging of account receivable at 31 December 2019 revealedthat S68,000 of the $835,000 outstanding accounts receivable will prove uncollectible. TheAllowance for Impairment has a debit balance of $6,200 prior to adjustment.Required:(Explanation of the Journal Entry is not required)Prepare an adjusting entry on 31 December 2019 to recognize the impairment loss of receivable.Part BOn 12 January 2020, Peter Lee, a major customer, declared bankruptey, and Albert Trading,determined that a receivable from Peter Lee in the amount of $3,400 was worthless.Required:(Explanation of the Journal Entry is not required)Prepare the journal entry required by Albert Trading in this situation.

Accounts Receivable: It is the money owed to the company by its customers. This happens because of…

Answered: Part A Albert Trading Limited used the…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Question Content Area Allowance for Doubtful Accounts has a credit balance of $1,065 at the end of the year (before adjustment), and an analysis of the receivables indicates uncollectible accounts of $11,265. Which of the following entries journalizes the proper adjustment for bad debt expense? a. debit Bad Debt Expense for $12,330; credit Allowance for Doubtful Accounts for $12,330 b. debit Bad Debt Expense for $10,200; credit Allowance for Doubtful Accounts for $10,200 c. debit Allowance for Doubtful Accounts for $12,330; credit Bad Debt Expense for $12,330 d. debit Allowance for Doubtful Accounts for $10,200; credit Bad Debt Expense for $10,200
Before year-end adjusting entries, VKS Company's account balances at December 31, 2021, for accounts receivable and the related allowance for uncollectible accounts were P500,000 and P45,000, respectively. An aging of accounts receivable indicated that P62,500 of the December 31 receivables are expected to be uncollectible. How much is the net realizable value of accounts receivable after adjustment?
Johnson Company caleulates its allowance for uncollectible'accounts as 10% of its ending balance in gross accounts recelvable. The allowance for uncollectible accounts had a credit balance of $12.000 at the beginning of 2021 No previously written-off accounts receivable were reinstated during 2021. At 12/31/2021, gross accounts receivable totnled $200,100, and prior to recording the adjusting entry to recognize bad debts expense for 2021, the allowance for uncollectible accounts had a debit balance of 22,000. Required: 1. What was the balance in gross accounts receivable as of 12/31/2020? 2. What journal entry should Johnson record to recognize bed 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?
Mazie Supply Co. uses the percent of accounts receivable method. On December 31, it has outstanding accou $148,000, and it estimates that 5% will be uncollectible. Prepare the year-end adjusting entry to record bad debts expense under the assumption that the Allowance f has: (a) a $2,516 credit balance before the adjustment. (b) a $740 debit balance before the adjustment. View transaction list Journal entry worksheet 1 Jhry Prepare the year-end adjusting entry to record bad debts expense under the assumption that the Allowance for Doubtful Accounts has a $740 debit balance before the adjustment. <
Analysis of Receivables Method At the end of the current year, Accounts Receivable has a balance of $870,000, Allowance for Doubtful Accounts has a debit balance of $8,000, and sales for the year total $3,920,000. Using the aging method, the balance of Allowance for Doubtful Accounts is estimated as $43,200. a. Determine the amount of the adjusting entry for uncollectible accounts. b. Determine the adjusted balances of Accounts Receivable, Allowance for Doubtful Accounts, and Bad Debt Expense. Accounts Receivable Allowance for Doubtful Accounts Bad Debt Expense c. Determine the net realizable value of accounts receivable.
Please answer this question with brief solution. I need the answer ASAP thank you!
Adjusting journal entry for the allowance for doubtful account.
Allowance for Doubtful Accounts has a credit balance of $1,468 at the end of the year (before adjustment), and an analysis of customers' accounts indicates uncollectible receivables of $20,012. Which of the following entries records the proper adjustment for bad debt expense? a.debit Allowance for Doubtful Accounts, $18,544; credit Bad Debt Expense, $18,544 b.debit Bad Debt Expense, $18,544; credit Allowance for Doubtful Accounts, $18,544 c.debit Allowance for Doubtful Accounts, $21,480; credit Bad Debt Expense, $21,480 d.debit Bad Debt Expense, $21,480; credit Allowance for Doubtful Accounts, $21,480
On December 31, 2021, Vaden Corporation had the following account balances related to credit sales and receivables prior to recording adjusting entries: Accounts receivable $350,000 Allowance for doubtful accounts 400 (credit balance) Sales revenue (all credit sales) 1,050,000 Required: Prepare the necessary year-end adjusting entry to estimate bad debt expense for each of the following independent assumptions: Accounts Receivable is aged into three categories – Current $210,000, 30 – 60 days past due - $80,000 and >60 days past due - $60,000. Additionally, the amount uncollectible for each category is 5% for current, 10% for 30-60 days and 25% for > 60 days. It is estimated that 2% of credit sales for the year will prove to be uncollectible.
Percent of accounts receivable method At each calendar year-end, Futaim Electric Co. uses the percent of accounts receivable method to estimate bad debts. On December 31, 2019, it has outstanding accounts receivable of AED310,000, and it estimates that 2.5% will be uncollectible. Required: Prepare the adjusting entry to record bad debts expense for year 2019 under the assumption that the Allowance for Doubtful Accounts has (a) a AED2,400 credit balance before the adjustment and (b) a AED1,800 debit balance before the adjustment.
The balances on December 31 before any adjustments : Sales - 5,000,000 Accounts receivable -600,000 Allowance for doubtful accounts-25,000 Assuming on December 31,2019, the company determined that 2% of sales is uncollectible. Question 1. What js the adjusting entry to recognize this? Question 2. What is the balance of the allowance for doubtful accounts after effecting the adjustment? Question 3. What is the net realizable balance of the Accounts Receivable?
At December 31, 2018, the Leni Inc. account balances before the year-end adjusting entries are the following, Accounts receivable- P50000 Allowance for uncollectible accounts P4500 According to aging of accounts receivable, P6250 of the December 31 receivables are expected to be uncollectible. How much is the net realizable value of accounts receivable after adjustment?

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