FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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Problem 5-13 (AICPA Adapted)
Namesake Conpany reported the following unadjusted
balances at year-end:
Debit
Credit
Accounts receivable
Allowance for doubtful accounts
Net credit sales
3,000,000
10,000
8,000,000
The entity estimated that 3% of the gross accounts receivable
would become uncollectible.
What amount should be reported as doubtful accounts
expense for the current year?
a. 240,000
b. 100,000
90,000
d. 80,000
с.
Problem 5-14 (AICPA Adapted)
Bestial Company reported the following accounts at
year-end before adjustments:
Debit
Credit
Allowance for doubtful accounts
5,000
Sales
Sales return
7,200,000
200,000
The entity estimated uncollectible accounts receivable at 2%
of net sales.
What amount of doubtful accounto expenee should be
reported for the current year?
a. 140,000
ь. 145,000
c. 141,000
d. 144,000
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Transcribed Image Text:Problem 5-13 (AICPA Adapted) Namesake Conpany reported the following unadjusted balances at year-end: Debit Credit Accounts receivable Allowance for doubtful accounts Net credit sales 3,000,000 10,000 8,000,000 The entity estimated that 3% of the gross accounts receivable would become uncollectible. What amount should be reported as doubtful accounts expense for the current year? a. 240,000 b. 100,000 90,000 d. 80,000 с. Problem 5-14 (AICPA Adapted) Bestial Company reported the following accounts at year-end before adjustments: Debit Credit Allowance for doubtful accounts 5,000 Sales Sales return 7,200,000 200,000 The entity estimated uncollectible accounts receivable at 2% of net sales. What amount of doubtful accounto expenee should be reported for the current year? a. 140,000 ь. 145,000 c. 141,000 d. 144,000
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