The Noran Company estimates that 2% of its total credit sales will prove to be uncollectible....

The Noran Company estimates that 2% of its total credit sales will prove to be uncollectible. The existing balance in allowance for doubtful accounts account is $4,000. If the credit sales for the year 2018 are $50,000, the adjusting entry on December 31, 2018 would be made for the amount of ?
Lie Dharma Corp. sells on terms of net/60. Its accounts are on the average 30 days past due. Annual credit sales are $500,000. The investment in accounts receivable is:
Best Company store receive 60 days, 9 % note for $5000 dated April 15^th 2015 as a settlement for a debt. You are required to : a. Calculate the amount of interest to be paid. b.Journalize the transaction.

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ekkarill92 answered 2 years ago

a. Demron estimates that 2% of net credit sales will prove to be uncollectible. Prepare the...

a. Demron estimates that 2% of net credit sales will prove to be uncollectible. Prepare the adjusting entry required on December 31, 2017, to estimate uncollectible receivables. b. During 2018, credit sales were $716,000 (cost of sales $469,460); sales discounts of $20,000 were taken when accounts receivable of $733,600 were collected; and accounts written off during the year totalled $16,400. Prepare the entries for these transactions. Assume Perpetual inventory system is used. c. Record the adjusting entry required on December...

Castle Company provides estimates for its uncollectible accounts. The allowance for uncollectible accounts had a credit...

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A Company estimates that warranty costs will equal 2% of sales. In September, total sales equaled...

A Company estimates that warranty costs will equal 2% of sales. In September, total sales equaled $400,000 and warranty claims were $4,700. If the September ending balance in warranty payable was $7,200, what was the September beginning balance in warranty payable? A. $ 3,300 B. $ 3,900 C. $ 8,000 D. $10,500 E. $10,800

Assuming the company estimates bad debts at an amount equal to 2% of credit sales.

The following information relates to a company's accounts receivable: gross accounts receivable balance at the beginning of the year, $300,000; allowance for uncollectible accounts at the beginning of the year, $25,000 (credit balance); credit sales during the year, $1,500,000; accounts receivable written off during the year, $16,000; cash collections from customers, $1,450,000. Assuming the company estimates bad debts at an amount equal to 2% of credit sales. 1. Calculate bad debt expenses for the year. 2. Calculate the year-end balance in the...

1)Company XYZ had total credit sales of $1,235,000. Calculate bad debt expense assuming the company estimates...

1)Company XYZ had total credit sales of $1,235,000. Calculate bad debt expense assuming the company estimates bad debt at 1% of sales made during the year (using the income statement approach). Record the journal entry to record the bad debt estimation. Accounts Debit Credit [ Select ] ["Bad Debt Expense", "Accounts Receivable", "Allowance for Doubtful Accounts", "Cash"] ...

The accounts receivable turnover ratio of a company is 2; if its annual credit sales is...

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AD Company estimates that variable costs will be 70% of sales and fixed costs will total...

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Glacial Company estimates that variable costs will be 63.2% of sales, and fixed costs will total...

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A. J & B Company uses the percentage of sales approach to estimate its uncollectible accounts....

A. J & B Company uses the percentage of sales approach to estimate its uncollectible accounts. The company’s annual sales for its first financial year of operations ending July 31, 2020 was $500,000, cash sales contributed to 2% of the overall sales and the accounts receivable balance at year end was $75,000. Based on industry expectations, it estimated that 3% of its credit sales would be uncollectible. Required: Show all workings a. Calculate the bad debt expense at July 31,...

Assume that you have a company. And the management team estimates that 3% of sales will be uncollectible. Give any amount of sales and prepare the journal entry using the percent of sales method.

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