Financial Accounting
4th Edition
ISBN: 9781259307959
Author: J. David Spiceland, Wayne M Thomas, Don Herrmann
Publisher: McGraw-Hill Education
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Chapter 5, Problem 5.7BE
To determine
Allowance for uncollectible accounts:
Allowance for uncollectible account is a contra asset account, whose normal balance is a credit balance. The amount of allowance for uncollectible account represents the amount of accounts receivable which are not expected to be collected.
Bad debt expense is an expense account. The amounts of loss incurred from extending credit to the customers are recorded as bad debt expense. Estimated future uncollectible accounts receivable are known as bad debt expense.
To record: The
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DI-TWO Corporation had the following accounts
and their balances on December 31 before any
adjustments:
Sales
P5,000,000
Accounts Receivable
600,000
Allowance for doubtful
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DI-TWO Corporation had the following accounts
and their balances on December 31 before any
adjustments:
Sales
P5,000,000
Accounts Receivable
600,000
Allowance for doubtful
accounts
25,000
CAN SOMEONE HELP ME FIGURE OUT THE TOTAL ESTIMATED UNCOLLECTIBIES AND THE BAD DEBIT EXPENSE ?
Skysong Company has accounts receivable of $112,400 at March 31, 2020. Credit terms are 2/10, n/30. At March 31, 2020, there is a $1,500 credit balance in Allowance for Doubtful Accounts prior to adjustment. The company uses the percentage-of-receivables basis for estimating uncollectible accounts. The company's estimate of bad debts is shown below.
Chapter 5 Solutions
Financial Accounting
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- Patrick Company had the following information in 2021: E (Click the icon to view the information.) If uncollectible accounts are determined by the aging-of-receivables method to be $1,280, the uncollectible account expense for 2021 would be $480. Using the aging-of-receivables method, the balance of the Allowance account after the adjusting entry at year-end 2021 would be - X Data table O A. $800. B. $1,280. Accounts receivable 12/31/21 %24 13,000 OC. $520. OD. $480. Allowance for uncollectible-accounts credit balance 12/31/21 (before adjustment) 800 Credit service revenue during 2021 43,000 Cash service revenue during 2021 13,000 Collections from customers on account during 2021 42,000 Print Donearrow_forward1. What is the required allowance for doubtful accounts at year-end? 2. How much would be the doubtful accounts expense for the current year? Please include solutions with the answers. Thank you.arrow_forward1. What is the balance of Accounts receivable as of December 31, 2022? 3,854,000 3,674,000 3,774,000 5,154,000 2. What is the amount of the current accounts receivable that might prove to be uncollectible? 65,400 63,400 67,000 77,080 3. What is the balance of the allowance for uncollectible accounts before adjustments on December 31, 2022? 60,000 credit 81,000 credit 20,000 debit 161,000 credit 4. How much increase in the allowance for uncollectible accounts is required on December 31, 2022? 57,400 40,320 43,600 137,400 5. What is the balance of the allowance for uncollectible accounts after all the necessary adjusting entries on December 31, 2022? 127,480 60,000 113,800 117,400arrow_forward
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