Principles of Accounting Volume 1
19th Edition
ISBN: 9781947172685
Author: OpenStax
Publisher: OpenStax College
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Textbook Question
Chapter 9, Problem 8MC
Conner Pride reports year-end credit sales in the amount of $567,000 and
A. $26,082
B. $6,164
C. $260,820
D. $61,640
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Conner Pride reports year-end credit sales in the amount of $567,000 and accounts receivable of $134,000. Conner uses the balance sheet method to report bad debt estimation. The estimation percentage is 4.6%. What is the estimated balance uncollectible using the balance sheet method?
A.$61,640
B.$260,820
C.$26,082
D.$6,164
Doer Company reports year-end credit sales in the amount of $390,000 and accounts receivable of $85,500. Doer uses the income statement method to report bad debt estimation. The estimation percentage is 3.5%. What is the estimated balance uncollectible using the income statement method?
A.$29,925
B.$2,992.50
C.$13,650
D.$136,500
9. Jars Plus recorded $861,430 in credit sales for the year and $488,000 in accounts
receivable. The uncollectible percentage is 2.3% for the income statement method, and
3.6% 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
$10,220, 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
$5,470, record the year-end entry for bad debt using the income statement method, and
then the entry using the balance sheet method.
Chapter 9 Solutions
Principles of Accounting Volume 1
Ch. 9 - Which of the following is not a criterion to...Ch. 9 - Which of the following best represents the...Ch. 9 - If a customer pays with a credit card and the...Ch. 9 - A car dealership sells a car to a customer for...Ch. 9 - Tines Commerce computes bad debt based on the...Ch. 9 - Doer Company reports year-end credit sales in the...Ch. 9 - Balloons Plus computes bad debt based on the...Ch. 9 - Conner Pride reports year-end credit sales in the...Ch. 9 - Which method delays recognition of bad debt until...Ch. 9 - Which of the following estimation methods...
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