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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Chapter 5, Problem 5.30P
Problem 5.30
LO 5
Analysis of
| Accounts receivable | $630,000 | |
| Less: Allowance for bad debts | (00,000) | $540,000 |
The company’s accounting records revealed the following information for the year ended December 31, 2017:
| Sales (all on account) | $4,800,000 |
| Cash collections from customers | 4,350,000 |
| Accounts written off | 105,000 |
| Bad debts expense (accrued at 12/31/17) | 165,000 |
Required:
Calculate the net realizable value of accounts receivable at December 31, 2017, and prepare the appropriate balance sheet presentation for Gibbs Co. as of that point in time. (Hint: Use T-accounts to analyze the Accounts Receivable and Allowance for Bad Debts accounts.)
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Question 8
Al Bakara company report the following results for its calendar year December 31,2021.
Cash sales
200,000
Credit sales
180,000
Account receivable
22,000 (debit)
Account payable
46,000 (credit)
Allowances for doubtful accounts
2,000 (debit)
The company estimates bad debts to be 2% of annual total sale.
Required:
1- Prepare the adjusting entry to record the estimated bad debt.
Answer in the following format [Note: This is just an example and is not related to the question]
Jan 1 Dr. Cash..........
..120
Cr. Owner capital..............120
unts appear on Al Bal
Question 9
Concord Company provides for bad debt expense at the rate of 3% of accounts receivable. The following data are available for 2018:
Allowance for doubtful accounts, 1/1/18 (Cr.)
$ 11300
Accounts written off as uncollectible during 2018
10400
Ending accounts receivable
1204000
The Allowance for Doubtful Accounts balance at December 31, 2018, should be
$37020.
$900.
$36120.
$35220.
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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