(2) Accounting for Bad Debts The following data was associated with the accounts receivable and uncollectible accounts of Hilton, Inc.during 2003. (1) Prepare journal entries under the direct write off method to record the fact that: (2) Prepare journal entries under theallowance method to record the fact that: (If a journal entry is not needed, state no entry.) (a) The company estimates that $920,000 of baddebts will occur this year. Date entry as of 1/1/03. (b) John Smith did not pay his account of $50,000, and it was written off on 12/15/03.JC(2) Accounting for Bad Debts-The following data was associated with the accounts receivable and uncollectibleaccounts of Hilton, Inc. during 2003.(1) Prepare journal entries under the direct write off method to record the fact that:(2) Prepare journal entries under the allowance method to record the fact that:(If a journal entry is not needed, state no entry.)(a) The company estimates that $920,000 of bad debts will occur this year. Date entry asof 1/1/03.(b) John Smith did not pay his account of $50,000, and it was written off on 12/15/03.

The allowances for accounts which are anticipated and estimated to be bad means those accounts…

The following data was associated with the accounts receivable and uncollectible accounts of Hilton, Inc. during 2003. (1) Prepare journal entries under the direct write off method to record the fact that: (2) Prepare journal entries under the allowance method to record the fact that: (If a journal entry is not needed, state no entry.) (a) The company estimates that $920,000 of bad debts will occur this year. Date entry as of 1/1/03. (b) John Smith did not pay his account of $50,000, and it was written off on 12/15/03.

The following data was associated with the accounts receivable and uncollectible accounts of Hilton, Inc. during 2003. (1) Prepare journal entries under the direct write off method to record the fact that: (2) Prepare journal entries under the allowance method to record the fact that: (If a journal entry is not needed, state no entry.) (a) The company estimates that $920,000 of bad debts will occur this year. Date entry as of 1/1/03. (b) John Smith did not pay his account of $50,000, and it was written off on 12/15/03.

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...

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Bristax Corporation recorded $1,385,660 in credit sales for the year, and $732,410 in accounts receivable. The uncollectible percentage is 3.1% for the income statement method and 4.5% for the balance sheet method. A. Record the year-end adjusting entry for 2018 bad debt using the income statement method. B. Record the year-end adjusting entry for 2018 bad debt using the balance sheet method. C. Assume there was a previous debit balance in Allowance for Doubtful Accounts of $20,550; record the year-end entry for bad debt using the income statement method, and then the entry using the balance sheet method. D. Assume there was a previous credit balance in Allowance for Doubtful Accounts of $17,430; record the year-end entry for bad debt using the income statement method, and then the entry using the balance sheet method.
The following accounts receivable information pertains to Marshall Inc. Determine the estimated uncollectible bad debt from Marshall Inc. using the balance sheet aging of receivables method, and record the year-end adjusting journal entry for bad debt.
Blackhorse Productions, Incorporated, used the aging of accounts receivable method to estimate that its Accounts should be $19,950. The account had an unadjusted credit balance of $11,000 at that time. Required: Prepare journal entries for each of the following. (If no entry is required for a transaction/event, select in the first account field.) a. The appropriate bad debt adjustment was recorded. b. Later, an account receivable for $1,100 was determined to be uncollectible and was written off. View transaction list Journal entry worksheet 1 2 Record the end-of-period adjustment for bad debts under the aging of accounts receivable method. Note: Enter debits before credits. Transaction General Journal Debit Credit View general journal Record entry Clear entry
The following accounts were found in the ledger of the Company on December 31 of the current year: Dr. Accounts Receivable - P356,800; Cr. Allowance for bad debts - P8,760; Cr. Cash Sales - P913,800; Cr. Credit Sales - P1,851,000. Analysis indicates that 5% of the outstanding accounts receivable will not be collected. How much will be adjustment necessary on December 31 for Allowance for bad debts?
(Recording Bad Debts) At the end of 2017, Aramis Company has accounts receivable of $800,000 and an allowance for doubtful accounts of $40,000. On January 16, 2018, Aramis Company determined that its receivable from Ramirez Company of $6,000 will not be collected, and management authorized its write-off.Instructions(a) Prepare the journal entry for Aramis Company to write off the Ramirez receivable.(b) What is the net realizable value of Aramis Company’s accounts receivable before the write-off of the Ramirez receivable?(c) What is the net realizable value of Aramis Company’s accounts receivable after the write-off of the Ramirez receivable?
Junko Enterprises uses the percentage of receivables method for estimating bad debts. At 1/1/23, Junko Enterprises had a credit balance in Allowance for Bad Debts of $900,000. Prepare journal entries for the following events: a) On Oct. 2, 2023, Junko realized that a specific account receivable of $920,000 had gone bad and had to be written off. b) An account receivable of $50,000 was collected on Oct. 25, 2023. This account had previously been written off as a bad debt in 2022. c) Junko has determined that Allowance for Bad Debts would be $970,000 at the end of 2023.
Big Bowl, Inc. uses the aging method to estimate its bad debts. The information below has been collected regarding the company's outstanding customer accounts and their probability of collection: Account Age 0-30 days Probability of Non-Collection Amount Owed 0.5% $652,800 31-60 days 1.0% 205,700 61-90 days 1.5% 128,000 91-120 days 3.0% 75,500 Over 120 days 15.0% 29,000 The balance in Big Bowl's' Allowance for Uncollectible Accounts account at year end before adjusting for a bad debt estimate is $360. Calculate the following amounts for Big Bowl, Inc.: A. Expected bad debt expense B. Total balance in accounts receivable C. Net realizable value of Big Bowl's accounts receivable
Blackhorse Productions, Inc., used the aging of accounts receivable method to estimate that its Allowance for Doubtful Accounts should be $23,550. The account had an unadjusted credit balance of $11,900 at that time. a. The appropriate bad debt adjustment was recorded. b. Later, an account receivable for $2,900 was determined to be uncollectible and was written off. Required: For each transaction listed above, indicate the amount and direction +for increase or -for decrease) of effects on the financial statement accounts and on the overall accounting equation. (Enter any decreases to Assets, Liabilities, or Stockholders Equity with a minus sign.) Assets Liabilities Stockholders' Equity
Sheridan Company reports the following financial information before adjustments. Accounts Receivable Allowance for Doubtful Accounts Sales Revenue (all on credit) Sales Returns and Allowances Dr. $150,000 50,660 Cr. $2,650 821,100
(Bad-Debt Accounting) Simms Company has significant amounts of trade accounts receivable. Simms uses the allowance method to estimate bad debts instead of the direct write-off method. During the year, some specific accounts were written off as uncollectible, and some that were previously written off as uncollectible were collected.Instructions(a) What are the deficiencies of the direct write-off method?(b) Briefly describe the allowance method to estimate bad debts and the theoretical justification for its use?(c) How should Simms account for the collection of the specific accounts previously written off as uncollectible?
Blackhorse Productions, Incorporated, used the aging of accounts receivable method to estimate that its Allowance for Doubtful Accounts should be $19,250. The account had an unadjusted credit balance of $12,000 at that time. Required: Prepare journal entries for each of the following. (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field.) a. The appropriate bad debt adjustment was recorded. b. Later, an account receivable for $1,200 was determined to be uncollectible and was written off. View transaction list Journal entry worksheet く 1 2 Record the end-of-period adjustment for bad debts under the aging of accounts receivable method. Note: Enter debits before credits. Transaction General Journal Debit Credit
Blackhorse Productions, Incorporated, used the aging of accounts receivable method to estimate that its Allowance for Doubtful Accounts should be $19,350. The account had an unadjusted credit balance of $10,000 at that time. Required: Prepare journal entries for each of the following. (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field.) a. The appropriate bad debt adjustment was recorded b. Later, an account receivable for $1000 was determined to be uncollectible and was written off. View transaction but Journal entry worksheet Record the end-of-period adjustment for bad debts under the aging of accounts receivable method. Note: Enter dets before creats. Transaction General Journal Debit Credit Cleary Resend untry