Question

In: Accounting

Using the percentage-of-receivables method for recording bad debt expense, estimated uncollectible accounts are $55,000. If the...

Using the percentage-of-receivables method for recording bad debt expense, estimated uncollectible accounts are $55,000. If the balance of Allowance for Doubtful Accounts is $11,000 debit before adjustment, what is the balance after adjustment?

A) $55,000

B) $11,000

C) $66,000

D) $44,000

Solutions

Expert Solution

ekkarill92 answered 2 years ago
Next > < Previous

Related Solutions

Using the percentage-of-receivables method for recording bad debts expense, estimated uncollectible accounts are €23,000. If the...
Using the percentage-of-receivables method for recording bad debts expense, estimated uncollectible accounts are €23,000. If the balance of the Allowance for Doubtful Accounts is €2,000 credit before adjustment, what is the balance of the Allowance for Doubtful Accounts end of that period? a. €2,000 b. €21,000 c. €23,000 d. €25,000
Analyzing and Reporting Receivable Transactions and Uncollectible Accounts Using Percentage- of-Sales Method to Estimate Bad Debt...
Analyzing and Reporting Receivable Transactions and Uncollectible Accounts Using Percentage- of-Sales Method to Estimate Bad Debt Expense At the beginning of the year, Penman Company had the following account balances. Accounts receivable...................... $356,000 Allowance for uncollectible accounts......... 21,400 During the year, Penman’s credit sales were $2,008,000, and collections on accounts receivable were $1,963,000. The following additional transactions occurred during the year. Feb. 17 Wrote off Bava’s account, $8,200. May 28 Wrote off Reed’s account, $4,800. Dec. 15 Wrote off Fischer’s...
Under the direct write-off method, when is bad debt expense (uncollectible accounts expense) recognized? Under the...
Under the direct write-off method, when is bad debt expense (uncollectible accounts expense) recognized? Under the allowance method, when is bad debt expense recognized? Name 1 reason why the direct write-off method is NOT allowed by FASB?
Ervin Company uses the allowance method to account for uncollectible accounts receivable. Bad debt expense is...
Ervin Company uses the allowance method to account for uncollectible accounts receivable. Bad debt expense is established as a percentage of credit sales. For 2021, net credit sales totaled $5,400,000, and the estimated bad debt percentage is 1.50%. No previously written-off accounts receivable were reinstated during 2021. The allowance for uncollectible accounts had a credit balance of $51,000 at the beginning of 2021 and $44,500, after adjusting entries, at the end of 2021. Required: 1. What is bad debt expense for 2021...
Crane Company uses the percentage-of-receivables basis to record bad debt expense. Accounts receivable (ending balance) $550,000...
Crane Company uses the percentage-of-receivables basis to record bad debt expense. Accounts receivable (ending balance) $550,000 (debit) Allowance for doubtful accounts (unadjusted) 5,300 (debit) The company estimates that 2% of accounts receivable will become uncollectible. (a) Prepare the adjusting journal entry to record bad debt expense for the year. (Credit account titles are automatically indented when amount is entered. Do not indent manually.) Account Titles and Explanation Debit Credit (b) What is the ending (adjusted) balance in Allowance for Doubtful...
Uncollectible Accounts—Percentage of Sales and Percentage of Receivables At the end of the current year, the...
Uncollectible Accounts—Percentage of Sales and Percentage of Receivables At the end of the current year, the accounts receivable account of Glenn's Nursery Supplies has a debit balance of $390,000. Credit sales are $2,780,000. Record the end-of-period adjusting entry on December 31, in general journal form, for the estimated uncollectible accounts. Assume the following independent conditions existed prior to the adjustment: 1. Allowance for Doubtful Accounts has a credit balance of $1,860. a. The percentage of sales method is used and...
Uncollectible Accounts—Percentage of Sales and Percentage of Receivables At the end of the current year, the...
Uncollectible Accounts—Percentage of Sales and Percentage of Receivables At the end of the current year, the accounts receivable account of Parker's Nursery Supplies has a debit balance of $344,120. Credit sales are $2,658,000. Record the end-of-period adjusting entry on December 31, in general journal form, for the estimated uncollectible accounts. Assume the following independent conditions existed prior to the adjustment: 1. Allowance for Doubtful Accounts has a credit balance of $1,985. a. The percentage of sales method is used and...
Accounting for uncollectible accounts using the allowance method (percent-of-receivables) and reporting receivables on the balance sheet...
Accounting for uncollectible accounts using the allowance method (percent-of-receivables) and reporting receivables on the balance sheet At January 1, 2016, Carl's Garage had Accounts Receivable of $ 34,000 and Allowance for Bad Debts had a credit balance of $ 3,000. During the year, Carl's Garage recorded the following: a.   Sales of $189,000 ($165,000 on account; $ 24,000 for cash). b.   Collections on account, $ 133,000. c.   Write-offs of uncollectible receivables, $ 2,800. Requirements 1.   Journalize Carl’s transactions that occurred during...
eBook Calculator Uncollectible Accounts—Percentage of Sales and Percentage of Receivables At the completion of the current...
eBook Calculator Uncollectible Accounts—Percentage of Sales and Percentage of Receivables At the completion of the current fiscal year ending December 31, the balance of Accounts Receivable for Yang's Gift Shop was $31,660. Credit sales for the year were $344,800. Required: Make the necessary adjusting entry in general journal form under each of the following assumptions. Show calculations for the amount of each adjustment and the resulting net realizable value. 1. Allowance for Doubtful Accounts has a credit balance of $335....
Jake Company records bad debt expense using the net credit sales method and has estimated that...
Jake Company records bad debt expense using the net credit sales method and has estimated that 5.5% of its credit sales will prove to be uncollectible. During 2019, Jake Company reported net credit sales of $120,000 and collected $150,000 cash from its credit customers. The $150,000 includes a $6,000 recovery of an account receivable written off in the previous year. During 2019, Jake Company wrote-off as uncollectible accounts receivable of $4,000. Jake Company reported accounts receivable at January 1, 2019...
ADVERTISEMENT
Subjects
ADVERTISEMENT
Latest Questions
ADVERTISEMENT