Question
In: Accounting
One might infer from a debit balance in Allowance for Doubtful Accounts that
One might infer from a debit balance in Allowance for Doubtful Accounts that
(a) a posting error has been made.
(b) more accounts have been written off than had been estimated would be uncollectible.
(c) the percentage of receivables basis is being used.
(d) bad debts expense has been overestimated.
Solutions
Expert Solution
(b) more accounts have been written off than had been estimated would be uncollectible.
Explanation - Allowance for doubtful accounts is a contra asset having credit balance. It is estimation of bad debt. If it has debit balance it means more accounts receivable have become uncollectible than what was originally estimated.
(b) more accounts have been written off than had been estimated would be uncollectible.
Nikita Chaplot answered 2 years agoRelated Solutions
The allowance for doubtful accounts has a debit balance of $1,000 at the end of the...
The allowance for doubtful accounts has a debit balance of
$1,000 at the end of the year (before adjustment), and
uncollectible accounts expense is estimated at $10,000. If accounts
receivable are $700,000, the amount of the adjusting entry to
record the allowance for doubtful accounts using the aging of
receivables method is:
Winstead & Company has Accounts receivable of $120,000 and a Debit balance of Allowance for Doubtful...
Winstead & Company has Accounts receivable of $120,000 and a
Debit balance of Allowance for Doubtful Accounts $1,000 in the
Allowance for Doubtful Accounts. and .The firm estimates that two
percent of the current accounts and five percent of the past due
account will prove to be uncollectible.
The adjusting entry to provide for the bad debts expenses under
the aging method should be for what amount?
Explain how allowance for doubtful accounts could have a debit balance? Explain in detail.
Explain how allowance for doubtful accounts could have a debit
balance? Explain in detail.
On December 31, 2013, when its Allowance for Doubtful accounts had a debit balance of $1,400,...
On December 31, 2013, when its Allowance for Doubtful accounts
had a debit balance of $1,400, Hunt co. estimates that 9% of its
accounts receivable balance of $90000 will become uncollectible and
records the necessary adjustment to Allowance for Doubtful
Accounts. On may 11, 2014, Hunt Co. determined that J. Byrd's
account was uncollectible and wrote of $1,200. On June 12, 2014,
Byrd paid the amount previously written off.
Prepare the journal entries on December 31, 2013, May 11, 2014,...
1)The allowance for doubtful accounts is reported as a contra-asset on the balance sheet Select one:...
1)The allowance for doubtful accounts is reported as a
contra-asset on the balance sheet
Select one:
True
False
2)When goods are shipped FOB destination, the revenue from the
sale is recognized on the shipment date.
Select one:
True
False
3)Tangible long-lived productive assets differ from intangible
long-lived productive assets in that tangible assets have physical
substance whereas intangible assets have no physical substance.
Select one:
True
False
4)Treasury stock is a corporation's own stock that was issued
and then repurchased,...
Aging of Receivables; estimating allowance for doubtful accounts Aging of receivables; estimating allowance for doubtful accounts...
Aging of Receivables; estimating allowance for doubtful
accounts
Aging of receivables; estimating allowance for doubtful
accounts
Fishy Fish company supplies flies and fishing gear to sporting
goods stores and outfitters throughout the western United States.
The accounts receivable clerk for Fishy Fish prepared the following
partially completed aging of receivables schedule as of the end of
business on December 31, 2015:
A
B
C
D
E
F
G
H
1
Not past Due
Days Past Due
2
3
Customer
Balance...
Allowance for Doubtful Accounts has a credit balance of $500 at the end of the year...
Allowance for Doubtful Accounts has a credit balance of $500 at
the end of the year (before adjustment), and bad debt expense is
estimated at 2% of credit sales. If credit sales are $848,200, the
amount of the adjusting entry to record the estimated uncollectible
accounts receivable
In the normal operation of business, you receive a check from a
customer and deposit it into your checking account. With your bank
statement, you are advised that this check for $775 is...
Donovan Carrier Corp has an Accounts Receivable Balance of $1,065,000 and an Allowance for Doubtful Accounts...
Donovan Carrier Corp has an Accounts Receivable Balance of
$1,065,000 and an Allowance for Doubtful Accounts of $99,500 as of
12/31/18. In 2019, Donovan has credit sales of $2,900,000 and
collections on account of $3,020,000. They write-off $103,000 in
uncollectible accounts in 2019. Their financial manager estimates
14% of their accounts receivable will be uncollectible as of
12/31/19.
REQUIRED : Provide the journal entry for Donovan for the account
write-offs for 2019.
REQUIRED : Provide the adjusting journal entry for...
Donovan Carrier Corp has an Accounts Receivable Balance of $1,065,000 and an Allowance for Doubtful Accounts...
Donovan Carrier Corp has an Accounts Receivable Balance of
$1,065,000 and an Allowance for Doubtful Accounts of $99,500 as of
12/31/18. In 2019, Donovan has credit sales of $2,900,000 and
collections on account of $3,020,000. They write-off $103,000 in
uncollectible accounts in 2019. Their financial manager estimates
14% of their accounts receivable will be uncollectible as of
12/31/19.
REQUIRED : Provide the journal entry for Donovan for the
account write-offs for 2019.
REQUIRED : Provide the adjusting journal entry for...
The balance in Allowance for Doubtful Accounts will directly impact the end-of-period adjustment for the bad...
The balance in Allowance for Doubtful Accounts will directly
impact the end-of-period adjustment for the bad debt expense when
using which of the following methods?
direct write-off method
allowance method based on aging the receivables
accrual method
declining value method
Indications that an account may be uncollectible include all of
the following except
the customer files for bankruptcy
the customer is making small but regular payments
the customer closes its business
the customer cannot be located
The operating expense recorded...
ADVERTISEMENT
ADVERTISEMENT
Latest Questions
- #Python 5. Write function called evaluate() that evaluates the following Python expressions or assignments as specified:...
- Suggest journal, research paper link reference. i need this as reference for writing a research with...
- Cryptography is used heavily in internet communications. True or false? Explain
- Suppose Rialto is the only movie cinema in a small college town, so it is essentially...
- With VMI, members of the supply chain share planning, demand, forecasting, and inventory information.
- Large lots are desirable in supply chain coordination despite increasing holding costs.
- ***Convert the C++ to Python*** #include <iostream> using std::cout; using std::cin; using std::endl; int charClass; char...
ADVERTISEMENT