If HOTEL’s tax rate is 30%, what amount should it report as bad debts expense in the income statement as an effect of change
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If HOTEL’s tax rate is 30%, what amount should it report as
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- ABC Company's Allowance for Doubtful Accounts had a credit balance of P150,000 at December 31, 2019. During 2020, uncollectible accounts of P35,000 had been written off. The company estimates its bad debts expense to be 2% of net sales. The balance of the allowance account at the end of 2020 was P437,000.Required:Compute for ABC's net sales for 2020.Pineapple Company has recorded bad debts expense in the past at a rate of 1.5% of net sales. In 2021, Pineapple decides to increase the estimate to 2%. If the new rate has been used in prior years, cumulative bad debts expense would have been P380,000 instead of P285,000. In 2021, bad debts expense will be P120,000 instead of P90,000. What amount of bad debts should the company report in its statement of comprehensive income as a result of a change in the estimate? P.S. Answer is not 95,000XYZ Company showed the following account balances as of December 31, 2020 : Net sales -P400,000; Accounts receivable - P150,000; and Allowance for bad debts - P10,000. The policy of the business states that allowance for bad debts should be 7% of net sales, how much is the doubtful accounts expense on December 31, 2020?
- 39. Pineapple Company has recorded bad debts expense in the past at a rate of 1.5% of net sales. In 2021, Pineapple decides to increase the estimate to 2%. If the new rate has been used in prior years, cumulative bad debts expense would have been P380,000 instead of P285,000. In 2021, bad debts expense will be P120,000 instead of P90,000. What amount of bad debts should the company report in its statement of comprehensive income as a result of a change in the estimate? a. P120,000 b. P-0- c. P95,000 d. P64,600In 2022, Pane in the Glass window company sold 100 windows on account for $200 each, By 12/31/2022 , the company collected $13,000 from customers. The compony estimates bad debt expense equal to 3% of credit sales but didn't write off any accounts receivable. On the company's 2022 balance sheet: what was the gross accounts recelvable?Lucas Co. provides for bad debt expense at the rate of 1% of sales on account. The allowance for doubtful accounts balance on December 31, 2020 was P17,500. During the year 2021, Lucas wrote off P30,500 of uncollectible receivables and recovered P8,050 of bad debts written in prior years. Assuming that the sales on account for 2021 totaled to P2,000,000, how much will be the allowance for doubtful account balance at December 31, 2021 be? a.P15,050 b. P19,950 c. P45,550 d. P5,000
- The company had sales of $100,000 for the calendrer period 2021. The allowance for doubtful accounts total at the beginning of the year was $1500. $ 1800 of accounts receivable were written off during the year as uncollectible. Assuming the company estimates the allowance for bad debts to be 2% of sales, what is the year end adjusting entry? Would your answer be different if the company utilized the direct write off method? If so, how?Aerospace Electronics reports $570,000 in credit sales for 2018 and $635,500 in 2019. They have a $503,000 accounts receivable balance at the end of 2018, and $605,000 at the end of 2019. Aerospace uses the income statement method to record bad debt estimation at 6% during 2018. To manage earnings more favorably, Aerospace changes bad debt estimation to the balance sheet method at 8% during 2019. A. Determine the bad debt estimation for 2018. $fill in the blank 1 B. Determine the bad debt estimation for 2019. $fill in the blank 2 C. How does the new total bad debt expense affect net income and net accounts receivable? a. Bad debt expense is lower, net income is higher, and net receivables are higher. b. Bad debt expense is lower, net income is higher, and net receivables are lower. c. Bad debt expense is higher, net income is lower, and net receivables are higher. d. Bad debt expense is higher, net income is lower, and net receivables are lower.) Vandross Company has recorded bad debt expense in the past at a rate of 1½% of accounts receivable, based on an aging analysis. In 2020, Vandross decides to increase its estimate to 2%. If the new rate had been used in prior years, cumulative bad debt expense would have been $380,000 instead of $285,000. In 2020, bad debt expense will be $120,000 instead of $90,000. If Vandross’s tax rate is 30%, what amount should it report as the cumulative effect of changing the estimated bad debt rate?
- Aerospace Electronics reports $570,000 in credit sales for 2018 and $635,500 in 2019. They have a $503,000 accounts receivable balance at the end of 2018, and $605,000 at the end of 2019. Aerospace uses the income statement method to record bad debt estimation at 6% during 2018. To manage earnings more favorably, Aerospace changes bad debt estimation to the balance sheet method at 8% during 2019. A. Determine the bad debt estimation for 2018. $fill in the blank 1 B. Determine the bad debt estimation for 2019. $fill in the blank 2Aerospace Electronics reports $568,000 in credit sales for 2018 and $634,500 in 2019. They have a $501,000 accounts receivable balance at the end of 2018, and $602,000 at the end of 2019. Aerospace uses the income statement method to record bad debt estimation at 5% during 2018. To manage earnings more favorably, Aerospace changes bad debt estimation to the balance sheet method at 7% during 2019. A. Determine the bad debt estimation for 2018. B. Determine the bad debt estimation for 2019. C. How does the new total bad debt expense affect net income and net accounts receivable? Bad debt expense is lower, net income is higher, and net receivables are higher. b. Bad debt expense is lower, net income is higher, and net receivables are lower. C. Bad debt expense is higher, net income is lower, and net receivables are higher. d. Bad debt expense is higher, net income is lower, and net receivables are lower.Concord Company has recorded bad debt expense in the past at a rate of 1.5% of accounts receivable, based on an aging analysis. In 2020, Concord decides to increase its estimate to 2%. If the new rate had been used in prior years, cumulative bad debt expense would have been $436,900 instead of $327,675. In 2020, bad debt expense will be $107,600 instead of $80,700. If Concord's tax rate is 30%, what amount should it report as the cumulative effect of changing the estimated bad debt rate? (Do not leave any answer field blank. Enter O for amounts.) The cumulative effect of changing the estimated bad debt rate