Question
In: Accounting
At the end of the year, Breyer Associates had a credit balance in its allowance for...
At the end of the year, Breyer Associates had a credit balance in its allowance for uncollectible accounts of $12,000 before adjustment. The balance in Breyer's gross accounts receivable is $600,000. Breyer's management estimates that 10% of its accounts receivable balance will not be collected.
What journal entry should Breyer record to adjust its allowance for uncollectible accounts? (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)
Solutions
Expert Solution
Bad Debt Expense = (Accounts receivable ending balance x
percentage estimated as uncollectible) – Existing credit balance in
allowance for doubtful accounts
= 600,000 x 10/100 - 12,000
= 60,000 - 12,000
= $48,000
Journal
| Transaction | General Journal | Debit | Credit |
| 1 | Bad debt expense | 48,000 | |
| Allowance for doubtful accounts | 48,000 | ||
| (To record bad debt expense) |
ekkarill92 answered 2 years agoRelated Solutions
At the end of the year, Breyer Associates had a credit balance in its allowance for uncollectible accounts of $9,000 before adjustment
At the end of the year, Breyer Associates had a credit balance in its allowance for uncollectible accounts of $9,000 before adjustment. The balance in Breyer's gross accounts receivable is $660,000. Breyer's management estimates that 6% of its accounts receivable balance will not be collected. What journal entry should Breyer record to adjust its allowance for uncollectible accounts? (if no entry is required for a transaction/event, select "No journal entry required" in the first account field.)
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Estimated
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Sam's Construction had a balance in its allowance for doubtful accounts at the end of 2014...
Sam's Construction had a balance in its allowance for doubtful
accounts at the end of 2014 of $44,500. Sam reported credit sales
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2014. At the end of the year, Sam estimates un-collectible accounts
receivable based on the year-end aging using the assumptions
provided at left.
What should Sam report as bad debt expense for 2015?
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Estimated
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0-30 days past...
QUESTION 39 Stargell had a credit balance of $5,360 in its allowance for uncollectible accounts at...
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Stargell had a credit balance of $5,360 in its allowance for
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been uncollectible. During the year, Stargell wrote off $6,660 of
accounts receivable. Gross accounts receivable at 12/31/20 is
$188,000.
What amount should reported as allowance for uncollectible accounts
in the year end balance sheet?
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Required:
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estimates uncollectible accounts based on an aging analysis as
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select "No journal entry required" in the first account
field.)
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1
%
43,000
1 to...
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Kiley Company had a $700 credit balance in Allowance for
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Number of Days Outstanding
TOTAL
Current
30
31-60
61-90
Over 90
Accounts receivable
155,000
120,000
12,000
10,000
5,000
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% Uncollectible
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3%
8%
17%
40%
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1,200
Instructions
Calculate the balance for the...
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