Accounting: What the Numbers Mean
11th Edition
ISBN: 9781259535314
Author: David Marshall, Wayne William McManus, Daniel Viele
Publisher: McGraw-Hill Education
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Textbook Question
Chapter 5, Problem 5.27P
Problem 5.27
LO 5
12/31/17 12/31/16
$472,800
Required:
- If $23,600 of accounts receivable were written off during 2017, what was the amount of bad debts expense recognized for the year? (Hint: Use a T-account model of the Allowance account, plug in the three amounts that you know, and solve for the unknown.)
- The December 31, 2017, Allowance account balance includes $6,200 for a past due account that is not likely to be collected. This account has not been written off. If it had been written off, what would have been the effect of the write-off on:
Working capital at December 31, 2017?- Net income and
ROI for the year ended December 31, 2017? - What do you suppose was the level of Avanti’s sales in 2017, compared to 2016? Explain your answer.
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Students have asked these similar questions
Question 15
A company has provided the following information for Allowance for Doubtful Accounts:
Allowance for Doubtful Accounts Beginning Balance = $2,700
Wrote-off $2,100 of uncollectible accounts
Allowance for Doubtful Accounts Ending Balance = 3,200
How much did the company record as Bad Debt Expense?
$3,800
None of these are correct.
$2,600
$500
O $1,600
12.10 Doubtful debts – ageing method *
LO3
On 1 June, McLean, Roberts and Associates had Accounts Receivable and Allowance for
Doubtful Debts accounts as set out below. Ignore GST.
Accounts Receivable
1/6
Balance
847 000
Allowance for Doubtful Debts
1/6
Balance
12 250
During June, the following transactions occurred:
1. fees earned on credit, $1 200 000
2. fees refunded, $25 000
3. accounts receivable collected, $1450 000
4. accounts written off as uncollectable, $14 740.
Based on an ageing of accounts receivable on 30 June, the firm decided that the Allowance
for Doubtful Debts account should have a credit balance of $13 000 on the balance sheet as at
30 June.
Required
(a) Prepare general journal entries to record the four transactions above and to adjust the
Allowance for Doubtful Debts account.
(b) Show how accounts receivable and the allowance for doubtful debts would appear on the
balance sheet at 30 June.
(c) On 29 July, Blundell Ltd, whose $1870 account had been written off as…
Multiple Choice Question 110
Using the percentage-of-receivables method for recording bad debt expense, estimated uncollectible accounts are
$45000. If the balance of the Allowance for Doubtful Accounts is an $9000 debit before adjustment, what is the amount
of bad debt expense for that period?
$9000
$54000
$45000
$36000
Chapter 5 Solutions
Accounting: What the Numbers Mean
Ch. 5 - Prob. 5.1MECh. 5 - Prob. 5.2MECh. 5 - Mini-Exercise 5.3 LO 5 Accounts receivable, bad...Ch. 5 - Mini-Exercise 5.4 LO 5 Bad debts...Ch. 5 - Mini-Exercise 5.5 LO 7, 8 Cost flow...Ch. 5 - Mini-Exercise 5.6 LO 7, 8 Cost flow...Ch. 5 - Prob. 5.7ECh. 5 - Prob. 5.8ECh. 5 - Prob. 5.9ECh. 5 - Prob. 5.10E
Ch. 5 - Exercise 5.11 LO 5 Bad debts analysis-Allowance,...Ch. 5 - Exercise 5.12 LO 5 Bad debts analysis-Allowance...Ch. 5 - Exercise 5.13 LO 5 Cash discounts-ROI Annual...Ch. 5 - Prob. 5.14ECh. 5 - Exercise 5.15 LO 6 Notes receivable-interest...Ch. 5 - Exercise 5.16 LO 6 Notes receivable-interest...Ch. 5 - Exercise 5.17 LO 7, 8 LIFO versus FIFO-matching...Ch. 5 - Prob. 5.18ECh. 5 - Prob. 5.19ECh. 5 - Prob. 5.20ECh. 5 - Exercise 5.21 LO 5, 6, 8 Transaction...Ch. 5 - Exercise 5.22 LO 5. 8, 10 Transaction...Ch. 5 - Exercise 5.23 LO 5, 6, 7 Transaction...Ch. 5 - Exercise 5.24 LO 7, 8, 10 Transaction...Ch. 5 - Prob. 5.25PCh. 5 - Prob. 5.26PCh. 5 - Problem 5.27 LO 5 Bad debts analysis-Allowance...Ch. 5 - Problem 5.28 LO 5 Bad debts analysis-Allowance...Ch. 5 - Problem 5.29 LO 5 Analysis of accounts receivable...Ch. 5 - Problem 5.30 LO 5 Analysis of accounts receivable...Ch. 5 - Problem 5.31 LO 7, 8 Cost flow assumptions-FIFO...Ch. 5 - Problem 5.32 LO 7, 8 Cost flow assumptions-FIFO,...Ch. 5 - Prob. 5.33PCh. 5 - Prob. 5.34PCh. 5 - Problem 5.35 LO 7 Effects of inventory errors If...Ch. 5 - Prob. 5.36PCh. 5 - Case 5.37 LO 5, 7, 8 Focus company-accounts...Ch. 5 - Case 5.38
LO 5, 7
Comparative analysis of current...
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Accounts Receivable and Accounts Payable; Author: The Finance Storyteller;https://www.youtube.com/watch?v=x_aUWbQa878;License: Standard Youtube License