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 5.28P
Problem 5.28
LO 5
12/31/17 12/31/16
Required:
- Describe how the allowance amount at December 31, 2017, was most likely determined.
- If had debts expense for 2017 totaled $48,000, what was the amount of accounts receivable written off during the year? (Hint: Use the 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 $21,000 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 HiROE’s sales in 2017, compared to 2016? Explain your answer.
- Calculate the ratio of the Allowance for Uncollectible Accounts balance to the Accounts Receivable balance at December 31, 2016 and 2017. What factors might have caused the change in this ratio?
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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
Question 14
Santagos Industries gathered the following information from its accounting records for the year ended December 31, 2019, prior to adjustment:
Net credit sales for the year $730,000
Accounts receivable balance, Dec. 31, 2019 145,000
Allowance for doubtful
accounts balance, Dec. 31, 2019 1,850 Cr.
Santagos uses the allowance method of accounting for uncollectible accounts and estimates bad-debt expense at 1.5% of net credit sales.
Required:
a) Prepare the adjusting entry to record bad-debt expense on December 31, 2019.
b) Determine the balance in allowance for doubtful accounts after the adjusting entry is prepared.
c) Show how the receivables would be reported on the December 31, 2019, balance sheet for Santagos Industries.
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
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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