1. At the beginning of the year, you had $65,000 in accounts receivable and an allowance...

1.
At the beginning of the year, you had $65,000 in accounts receivable and an allowance for doubtful accounts of $6,000 (net realizable value $59,000). During the year you made sales of $600,000, of which 80% were on account, and $12,000 of the sales on account were returned. You collected $430,000 in cash from your customers during the year, wrote off $3,000 in uncollectable accounts, and recovered $1,000 from previous years’ write-offs.

What is your bad debt expense for the year, assuming that 7% of your year-end accounts receivable will not be collected?
a) $7,210
b) $16,000
c) $3,840
d) $3,000
e) $4,000

Expert Solution

ekkarill92 answered 2 years ago

A company’s year-end balance in accounts receivable is $2,000,000. The allowance for uncollectible accounts had a...

A company’s year-end balance in accounts receivable is $2,000,000. The allowance for uncollectible accounts had a beginning-of-year credit balance of $30,000. An aging of accounts receivable at the end of the year indicates a required allowance of $38,000. If bad debt expense for the year was $40,000 and if credit sales for the year were $8,200,000 and $7,950,000 was collected from credit customers, what was the beginning-of-year balance in accounts receivable?

On 1 June, Mason and Boyce had Accounts Receivable and Allowance for Doubtful Debts accounts as...

On 1 June, Mason and Boyce had Accounts Receivable and Allowance for Doubtful Debts accounts as below. Ignore GST. accounts recievables 1/6 balance 849,555 allowance for doubtful debts 1/6 balance 12.100 During June, the following transactions occurred: 1. Revenue earned on credit, $1,195,000 . 2. Sales returns, $24,100. 3. Accounts receivable collected, $1,400,000 . 4. Accounts written off as uncollectable, $15,851. Based on an ageing of accounts receivable on 30 June, the firm determined that the Allowance for Doubtful...

Problem 9 : At the beginning of the year, ABC had $100,000 in Accounts Receivable and...

Problem 9 : At the beginning of the year, ABC had $100,000 in Accounts Receivable and $15,000 in Allowance for Doubtful Accounts. During the year ABC sold $900,000 of product on account and collected $930,000 in cash. In addition, ABC wrote-off $10,000 of outstanding Accounts Receivable because a customer declared bankruptcy. a) Determine the ending balance in Accounts Receivable and Allowance for Doubtful Accounts before any adjusting entry or provision for bad debt expense is recorded. b) Assuming ABC estimates...

On January 1, 2020, Novak Corp. had Accounts Receivable $140,800, Notes Receivable $24,000, and Allowance for...

On January 1, 2020, Novak Corp. had Accounts Receivable $140,800, Notes Receivable $24,000, and Allowance for Doubtful Accounts $12,300. The note receivable is from Willingham Company. It is a 4-month, 9% note dated December 31, 2019. Novak Corp. prepares financial statements annually at December 31. During the year, the following selected transactions occurred. Jan. 5 Sold $18,200 of merchandise to Sheldon Company, terms n/15. 20 Accepted Sheldon Company’s $18,200, 3-month, 8% note for balance due. Feb. 18 Sold $6,400 of...

On January 1, 2019, Wildhorse Co. had Accounts Receivable $144,300, Notes Receivable $30,000, and Allowance for...

On January 1, 2019, Wildhorse Co. had Accounts Receivable $144,300, Notes Receivable $30,000, and Allowance for Doubtful Accounts $18,300. The note receivable is from Willingham Company. It is a 4-month, 9% note dated December 31, 2018. Wildhorse Co. prepares financial statements annually at December 31. During the year, the following selected transactions occurred. Jan. 5 Sold $24,700 of merchandise to Sheldon Company, terms n/15. 20 Accepted Sheldon Company’s $24,700, 3-month, 8% note for balance due. Feb. 18 Sold $13,600 of...

At January 1, 2021, Tanner Company reported accounts receivable of $262,750 and had an allowance for...

At January 1, 2021, Tanner Company reported accounts receivable of $262,750 and had an allowance for doubtful accounts with a $13,690 credit balance. During 2021, Tanner Company had sales revenue of $531,250, recoveries of $6,190, cash collections from credit customers of $493,580 (the $493,580 does not include the recovery), and bad debt expense of $20,870. During 2021, Tanner Company wrote-off accounts receivable as being uncollectible (note - the amount of the write-offs has been intentionally omitted from this problem). At...

Jupiter Corporation had $8,500 balance in accounts receivable at the beginning of the current year. The...

Jupiter Corporation had $8,500 balance in accounts receivable at the beginning of the current year. The beginning balance of allowance for doubtful accounts was $2,000. Early in January, $500 worth of receivable were written off as uncollectible. What is the net realizable value of accounts receivable, after the write off? Select one: a. $7,000 b. $1,500 c. $8,000 d. $6,500 e. $6,000

At the beginning of the year, Tennyson Auto Parts had an accounts receivable balance of $31,800...

At the beginning of the year, Tennyson Auto Parts had an accounts receivable balance of $31,800 and a balance in the allowance for doubtful accounts of $2,980 (credit). During the year, Tennyson had credit sales of $624,300, collected accounts receivable in the amount of $602,700, wrote off $18,600 of accounts receivable, and had the following data for accounts receivable at the end of the period: Accounts Receivable Age Amount Proportion Expected to Default Current $22,400 0.01 1–15 days past due...

Start with the beginning balances for these T-accounts: Accounts Receivable, $ 102 comma 000$102,000, Allowance for...

Start with the beginning balances for these T-accounts: Accounts Receivable, $ 102 comma 000$102,000, Allowance for Uncollectible Accounts, $ 11 comma 000$11,000. Post the following 20182018 transactions to the T-accounts: a. Service revenue of $ 704 comma 000$704,000, all on account b. Collections on account, $ 718 comma 000$718,000 c. Write-offs of uncollectible accounts, $ 6 comma 000$6,000 d. Uncollectible-account expense (allowance method), $ 12 comma 000$12,000. What are the ending balances of Accounts Receivable and Allowance for Uncollectible Accounts?...

At January ?1, 2018?, White TopWhite Top Flagpoles had Accounts Receivable of $27,000? and Allowance for...

At January ?1, 2018?, White TopWhite Top Flagpoles had Accounts Receivable of $27,000? and Allowance for Bad Debts had a credit balance of .$4,000. During the? year, White TopWhite Top Flagpoles recorded the? following: ?(Click the icon to view the? transactions.)Read the requirements LOADING... .Requirement 1. Journalize White'sWhite's transactions that occurred during 20182018. The company uses the allowance method. ?(Record debits? first, then credits. Select the explanation on the last line of the journal entry? table. a.) Sales of $187,000...

Question