At the end of the current year, the accounts receivable account has a debit balance of...

At the end of the current year, the accounts receivable account has a debit balance of $1,095,000 and sales for the year total $12,420,000.

The allowance account before adjustment has a debit balance of $14,800. Bad debt expense is estimated at 3/4 of 1% of sales.
The allowance account before adjustment has a debit balance of $14,800. An aging of the accounts in the customer ledger indicates estimated doubtful accounts of $47,400.
The allowance account before adjustment has a credit balance of $5,300. Bad debt expense is estimated at 1/4 of 1% of sales.
The allowance account before adjustment has a credit balance of $5,300. An aging of the accounts in the customer ledger indicates estimated doubtful accounts of $44,000.

Solutions

Expert Solution

Determination of the amount of the adjustment entry to provide for doubtful accounts:

A) Amount of the adjustment entry to be provided for doubtful accounts:

It is equal to the estimated bad debt expense

= (Sales × 1%) × (1/4)

= ($12420000×1%) × (1/4)

= $124200×(1/4)

= $31050

B) Amount of adjustment entry to be provided for doubtful accounts:

It is equal to the estimated amount of doubtful accounts in addition to the the debit balance amount in allowance account.

= $47400+$14800

= $62200

*$14800 has been added since the allowance account has debit balance

C) Amount of the adjustment entry to be provided for doubtful accounts:

It is equal to the estimated bad debts expense

= (Sales × 1%) × (3/4)

= ($12420000×1%)×(3/4)

= $124200×(3/4)

= $93150

D) Amount of the adjustment entry to be provided for doubtful accounts:

It is equal to the estimated amount of doubtful accounts after deducting the credit balance amount in allowance account

= $60600 - $7300

= $53300

Any doubt comment below i will explain or resolve until you got....
PLEASE.....UPVOTE....ITS REALLY HELPS ME....THANK YOU....SOOO MUCH....
Please comment if any querry i will resolve as soon as possible

ekkarill92 answered 1 year ago

Next > < Previous

Related Solutions

At the end of the current year, the accounts receivable account has a debit balance of...

At the end of the current year, the accounts receivable account has a debit balance of $932,000 and sales for the year total $10,570,000. The allowance account before adjustment has a debit balance of $12,600. Bad debt expense is estimated at 1/2 of 1% of sales. The allowance account before adjustment has a debit balance of $12,600. An aging of the accounts in the customer ledger indicates estimated doubtful accounts of $40,300. The allowance account before adjustment has a credit...

At the end of the current year, the accounts receivable account has a debit balance of...

At the end of the current year, the accounts receivable account has a debit balance of $777,000 and sales for the year total $8,810,000. The allowance account before adjustment has a debit balance of $10,500. Bad debt expense is estimated at 3/4 of 1% of sales. The allowance account before adjustment has a debit balance of $10,500. An aging of the accounts in the customer ledger indicates estimated doubtful accounts of $33,600. The allowance account before adjustment has a credit...

roviding for Doubtful Accounts At the end of the current year, the accounts receivable account has...

roviding for Doubtful Accounts At the end of the current year, the accounts receivable account has a debit balance of $703,000 and sales for the year total $7,970,000. The allowance account before adjustment has a credit balance of $9,500. Bad debt expense is estimated at 3/4 of 1% of sales. The allowance account before adjustment has a credit balance of $9,500. An aging of the accounts in the customer ledger indicates estimated doubtful accounts of $30,400. The allowance account before...

Providing for Doubtful Accounts At the end of the current year, the accounts receivable account has...

Providing for Doubtful Accounts At the end of the current year, the accounts receivable account has a debit balance of $821,000 and sales for the year total $9,310,000. The allowance account before adjustment has a debit balance of $11,100. Bad debt expense is estimated at 1/4 of 1% of sales. The allowance account before adjustment has a debit balance of $11,100. An aging of the accounts in the customer ledger indicates estimated doubtful accounts of $35,500. The allowance account before...

Providing for Doubtful Accounts At the end of the current year, the accounts receivable account has...

Providing for Doubtful Accounts At the end of the current year, the accounts receivable account has a debit balance of $1,147,000 and sales for the year total $13,000,000. The allowance account before adjustment has a credit balance of $15,500. Bad debt expense is estimated at 3/4 of 1% of sales. The allowance account before adjustment has a credit balance of $15,500. An aging of the accounts in the customer ledger indicates estimated doubtful accounts of $49,600. The allowance account before...

At the end of the current year, Accounts Receivable has a balance of $969,540 Allowance for...

At the end of the current year, Accounts Receivable has a balance of $969,540 Allowance for Doubtful Accounts has a credit balance of $5,287 and sales for the year total $2,224,000. Bad debt expense is estimated at ½ of 1% of sales. a. Determine the amount of the adjusting entry for bad debt expense. $ b. Determine the adjusted balances of Accounts Receivable, Allowance for Doubtful Accounts, and Bad Debt Expense. Adjusted Balance Accounts Receivable $ Allowance for Doubtful Accounts...

Problem 2. At the end of the current year, Accounts Receivable has a balance of...

Problem 2. At the end of the current year, Accounts Receivable has a balance of $550,000; Allowance for Doubtful Accounts has a credit balance of $5,500; and net sales for the year total $2,500,000. Using the aging method (analysis of receivables), the proper balance of Allowance for Doubtful Accounts is estimated as $25,000. Determine the amount of the adjusting entry for uncollectible accounts and journalize the entry. Date Account Title Debit Credit Determine the adjusted balances of the following...

At the end of the current year, Accounts Receivable has a balance of $98,880; Allowance for...

At the end of the current year, Accounts Receivable has a balance of $98,880; Allowance for Doubtful Accounts has a debit balance of $3,556; and sales for the year total $1,108,000. Bad debt expense is estimated at 1/2 of 1% of sales. a. Determine the amount of the adjusting entry for bad debt expense. $ b. Determine the adjusted balances of Accounts Receivable, Allowance for Doubtful Accounts, and Bad Debt Expense. Adjusted Balance Accounts Receivable$ Allowance for Doubtful Accounts Bad...

At the end of the current year, Accounts Receivable has a balance of $803,120; Allowance for...

At the end of the current year, Accounts Receivable has a balance of $803,120; Allowance for Doubtful Accounts has a credit balance of $5,189; and sales for the year total $2,213,000. Bad debt expense is estimated at 1/2 of 1% of net sales. a. Determine the amount of the adjusting entry for bad debt expense. $ b. Determine the adjusted balances of Accounts Receivable, Allowance for Doubtful Accounts, and Bad Debt Expense. Adjusted Balance Accounts Receivable $ Allowance for Doubtful...

At the end of the current year, Accounts Receivable has a balance of $3,000,000; Allowance for...

At the end of the current year, Accounts Receivable has a balance of $3,000,000; Allowance for Doubtful Accounts has a debit balance of $475,000; and Net Sales for the year total $6,500,000. Bad Debt Expense is estimated at 3/4 of 1% of Net Sales. Calculate the dollar amount required to record the allowance amount. Prepare the adjusting journal entry for the Allowance for Doubtful Accounts: Date Accounts Dr Cr Calculate the Net Accounts Receivable Balance

Subjects