Winstead & Company has accounts receivable of $288,000 and a negative balance of $2,400 in the Allowance for Doubtful Accounts. Two-thirds of the accounts receivable are current and one-third is past due. The firm estimates that two percent of the current accounts and five percent of the past due accounts will prove to be uncollectible. The adjustment to provide for the bad debt expense under the aging method should be for what amount
Q: At the end of the current year, the accounts receivable account has a debit balance of $844,000 and…
A: Since, You have asked for part b, c and d. So, we will solve these three parts for you.
Q: Manilow Corporation operates in an industry that has a high rate of bad debt. Before any year-end…
A: Under the aging method, every category of accounts is analyzed to calculate the expected…
Q: Providing for Doubtful Accounts At the end of the current year, the accounts receivable account has…
A: The allowance for doubtful accounts is created to record estimated bad debt expense for the period.…
Q: At the end of the current year, the accounts receivable account has a debit balance of $821,000 and…
A: Allowance for doubtful accounts is a contra asset for Accounts receivable and it must have credit…
Q: Providing for Doubtful Accounts At the end of the current year, the accounts receivable account has…
A: Solution 1. Bad debt expense = ¼ (1% * $9,150,000) = $22,875 Journal entry: Bad debt expense ……….…
Q: Providing for Doubtful Accounts At the end of the current year, the accounts receivable account has…
A: Allowance for doubtful accounts means where we expect some debts to become bad in near future then…
Q: What adjusting entry will Tanning Company make if the Allowance for Doubtful Accounts has a credit…
A: Journal entry: Journal entry is the book of original entry where first transactions are recorded in…
Q: At the end of the current year, the accounts receivable account has a debit balance of $844,000 and…
A: Adjusting entry is the journal entry that has been made to record the adjustment of the accounts…
Q: Tanning Company analyzes its receivables to estimate bad debt expenses. The accounts receivable…
A: Calculate bad debt expense.
Q: An aging of a company's accounts receivable indicates that $7,327 are estimated to be uncollectible.…
A: The adjustment of bad debt expense is made to the allowance account such that the ending balance is…
Q: Tanning company analyzes its receivables to estimate bad debt expense. The accounts receivable…
A: Allowance for doubtful debts is considered as the contra asset item i.e used to decrease the value…
Q: Tanning Company analyzes its receivables to estimate bad debt expense. The accounts receivable…
A: Total balance required in Allowance for Doubtful Accounts = Accounts receivable*5% = $390,000*5% =…
Q: Manilow Corporation operates in an industry that has a high rate of bad debts. Before any year-end…
A: Workings: Total accounts receivable = $ 555000 Allowance for doubtful accounts = $ 40000
Q: Libre, Inc. has experienced bad debt losses of 4% of credit sales in prior periods. At the end of…
A: Under % of credit sales method, Bad debt expense is calculated as = Credit Sales * Estimated % of…
Q: At the end of the current year, the accounts receivable account has a debit balance of $969,000 and…
A: Bad debts expense = sales x 0.75% = $10,990,000 x 0.75% = $82,425
Q: At the end of the current year, the accounts receivable account has a debit balance of $636,000 and…
A: Bad debts (% of sales method) = Sales x Estimated (%) Uncollectible In (%) of sales method, existing…
Q: he Accounts Receivable balance for River Corporation is $407,000 as of January 31, 2020. Before…
A: A bad debt expense is usually incurred whenever receivables seem to be no longer recoverable because…
Q: As of December 31, Frappe Company has a balance of $5,000 in accounts receivable. Of this amount,…
A: Bad Debts Expense: Bad Debts are accounts receivable that a company does not expect to collect and…
Q: Providing for Doubtful Accounts At the end of the current year, the accounts receivable account has…
A: In order to increase the sales revenue, the business organizations sells their goods on a credit…
Q: Assume that Simple Co. had credit sales of $250,000 and cost of goods sold of $150,000 for…
A: Bad debt expense: It is an expense account. The amount of loss incurred from extending credit to the…
Q: The Accounts Receivable balance for River Corporation is $429,000 as of January 31, 2020. Before…
A: As posted multiple sub parts we are answering only first three sub parts kindly repost the…
Q: Flyer Company has provided the following information prior to any year-end bad debt adjustment: •…
A: SOLUTION- WORKING NOTE- CALCULATION OF BAD DEBT EXPENSE = CREDIT SALE * PERCENTAGE OF BAD DEBT…
Q: At the end of the current year, the accounts receivable account has a debit balance of $636,000 and…
A: Doubtful accounts: Doubtful accounts means accounts receivable that might become uncollectible or…
Q: Winstead & Company has accounts receivable of $120,000 and a negative balance of $1,000 in the…
A: Introduction: Accounts receivable: Its a current Asset Item which is to be shown in Balance sheet…
Q: the amount of bad debt expense is?
A: Allowance method:- In the allowance method bad debts are estimated even before they occur in…
Q: a. The allowance account before adjustment has a negative balance of $(18,500). Bad debt expense is…
A: Solution:- Given, The accounts receivable account has a balance = $2,875,000 Sales for the year =…
Q: Providing for Doubtful Accounts At the end of the current year, the accounts receivable account has…
A: The bad debt expense of $611,250 is computed by multiplying total sale of $81,500,000 with the…
Q: Providing for Doubtful Accounts At the end of the current year, the accounts receivable account has…
A: Allowance for doubtful accounts means where we expect some debts to become bad in near future then…
Q: Providing for Doubtful Accounts At the end of the current year, the accounts receivable account has…
A: Bad Debts: Bad debt is an Expense. It is non-payment by the debtors. It is uncollectible from the…
Q: The company uses two aging categories to estimate uncollectible accounts. Accounts less than 60 days…
A: Uncollectible current accounts = current accounts x 3% = $34,600 x 3% = $10380
Q: Blackhorse Productions, Incorporated, used the aging of accounts receivable method to estimate that…
A: Introduction: Journals: Recording of a business transactions in a chronological order. First step in…
Q: BEBE Co. has outstanding accounts receivable totaling P2.50 million as of December 31 and sales on…
A: The allowance for doubtful accounts is created to record estimated bad debt expense for the period.
Q: At the close of its first year of operations, December 31, 2004, Linn Company had accounts…
A: Allowance for doubtful accounts = Bad debt expense - Amount wrote off = ₱90,000 - ₱40,000 = ₱50,000
Q: At the beginning of current year, Rampant Company reported that the allowance for doubtful accounts…
A: The answer is stated below:
Q: the end of the current year, the accounts receivable account has a debit balance of $1,184,000 and…
A: Answer to (A) Calculation of doubtful account amount : = Sales x 1% x (1/2) =13,420,000 x 1% x (1/2)…
Q: At the end of the current year, the accounts receivable account has a debit balance of $881,000 and…
A: There are two methods of estimating allowance for doubtful debts, namely Percentage of Sales method…
Q: Williams Company’s Accounts Receivable Account has a balance of $900,000, and the Allowance for…
A: Allowance for bad debts is an estimated amount of uncollectible accounts receivable. The provision…
Q: ankine Company estimates its bad debt expense by aging its accounts receivable and applying…
A: Calculation of amount of adjustment required on December 31 In the given question, the company…
Q: An aging of a company's accounts receivable indicates that the estimate of uncollectible accounts…
A: Bad Debts Expense to be recorded = Required credit balance in Allowance for Doubtful Accounts…
Q: An aging of a company's accounts receivable indicates that $5,539 are estimated to be uncollectible.…
A: Amount of bad debts expense = Estimated uncollectible accounts - Unadjusted balance of Allowance for…
Q: Pichai Party Supplies reported an allowance for doubtful accounts of $24,000 at the beginning of the…
A: In the given case, we need to compute the accounts receivables write-offs during the year by the…
Q: Winstead & Company has accounts receivable of $120,000 and a negative balance of $1,000 in the…
A:
Q: Providing for Doubtful Accounts At the end of the current year, the accounts receivable account has…
A: a. 27,400,000 x 3/4 x 1% = $205,500
Q: Vaughn Manufacturing has outstanding accounts receivable totaling $ 6.47 million as of December 31…
A: The addition to allowance for doubtfut debts account is calculated as under: = % of expected…
Q: Providing for Doubtful Accounts At the end of the current year, the accounts receivable account has…
A: As posted multiple sub parts we are answering only first three sub parts kindly repost the…
Q: Based on its past collection experience, Brody Company provides for bad debts at the rate of 2…
A: Option b is correct.
Q: Using the aging method for recording bad debt expense, estimated uncollectible accounts are $80,000.…
A: Calculation of balance after adjustment and cash flow from financing activity are as follows
Q: Florence Company had a debit balance of $1,500 in the Allowance for Doubtful Accounts account and a…
A: Answer: Bad debt expense is an expenses which company does not expect to receive and the company is…
Q: net credit sales will be uncollectible
A: Allowance for doubtful accounts shows the amount of receivables that are are not considered as…
Q: Flyer Company has provided the following information prior to any year-end bad debt adjustment: Cash…
A: Bad Debt Expense- A bad debt expense is acknowledged when a receivable is no longer collectible for…
Winstead & Company has accounts receivable of $288,000 and a negative balance of $2,400 in the Allowance for Doubtful Accounts.
Two-thirds of the accounts receivable are current and one-third is past due. The firm estimates that two percent of the current accounts and five percent of the past due accounts will prove to be uncollectible.
The adjustment to provide for the
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
- Bristax Corporation recorded $1,385,660 in credit sales for the year, and $732,410 in accounts receivable. The uncollectible percentage is 3.1% for the income statement method and 4.5% for the balance sheet method. A. Record the year-end adjusting entry for 2018 bad debt using the income statement method. B. Record the year-end adjusting entry for 2018 bad debt using the balance sheet method. C. Assume there was a previous debit balance in Allowance for Doubtful Accounts of $20,550; record the year-end entry for bad debt using the income statement method, and then the entry using the balance sheet method. D. Assume there was a previous credit balance in Allowance for Doubtful Accounts of $17,430; record the year-end entry for bad debt using the income statement method, and then the entry using the balance sheet method.At the end of 20-3, Martel Co. had 410,000 in Accounts Receivable and a credit balance of 300 in Allowance for Doubtful Accounts. Martel has now been in business for three years and wants to base its estimate of uncollectible accounts on its own experience. Assume that Martel Co.s adjusting entry for uncollectible accounts on December 31, 20-2, was a debit to Bad Debt Expense and a credit to Allowance for Doubtful Accounts of 25,000. (a) Estimate Martels uncollectible accounts percentage based on its actual bad debt experience during the past two years. (b) Prepare the adjusting entry on December 31, 20-3, for Martel Co.s uncollectible accounts.Shimmer Products is considering which bad debt estimation method works best for its company. It is deciding between the income statement method, balance sheet method of receivables, and balance sheet aging of receivables method. If it uses the income statement method, bad debt would be estimated at 5.6% of credit sales. If it were to use the balance sheet method, it would estimate bad debt at 13.7% percent of accounts receivable. If it were to use the balance sheet aging of receivables method, it would split its receivables into three categories: 0–30 days past due at 5%, 31–90 days past due at 21%, and over 90 days past due at 30%. There is currently a zero balance, transferred from the prior years Allowance for Doubtful Accounts. The following information is available from the year-end income statement and balance sheet. There is also additional information regarding the distribution of accounts receivable by age. Prepare the year-end adjusting entry for bad debt, using A. Income statement method B. Balance sheet method of receivables C. Balance sheet aging of receivables method D. Which method should the company choose, and why?
- Tonis Tech Shop has total credit sales for the year of 170,000 and estimates that 3% of its credit sales will be uncollectible. Allowance for Doubtful Accounts has a credit balance of 275. Prepare the adjusting entry at year-end for the estimated bad debt expense. (a) Based on an aging of its accounts receivable, Kyles Cyclery estimates that 3,200 of its year-end accounts receivable will be uncollectible. Allowance for Doubtful Accounts has a debit balance of 280 at year-end. Prepare the adjusting entry at year-end for the estimated uncollectible accounts.Determining Bad Debt Expense Using the Aging Method 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: Required: 1. Determine the desired post adjustment balance in allowance for doubtful accounts. 2. Determine the balance in allowance for doubtful accounts before the bad debt expense adjusting entry is posted. 3. Compute bad debt expense. 4. Prepare the adjusting entry to record bad debt expense.Jars Plus recorded $861,430 in credit sales for the year and $488,000 in accounts receivable. The uncollectible percentage is 2.3% for the income statement method, and 3.6% for the balance sheet method. A. Record the year-end adjusting entry for 2018 bad debt using the income statement method. B. Record the year-end adjusting entry for 2018 bad debt using the balance sheet method. C. Assume there was a previous debit balance in Allowance for Doubtful Accounts of $10,220, record the year-end entry for bad debt using the income statement method, and then the entry using the balance sheet method. D. Assume there was a previous credit balance in Allowance for Doubtful Accounts of $5,470, record the year-end entry for bad debt using the income statement method, and then the entry using the balance sheet method.
- Tanning Company analyzes its receivables to estimate bad debt expenses. The accounts receivable balance is $350,000 and credit sales are $1,300,000. An aging of accounts receivable shows that approximately 10% of the outstanding receiveables will be uncollectible. What adjusting entry will Tanning Company make if Allowance for Doubtful Accounts has a credit balance of $2500 before adjustment?Winstead & Company has accounts receivable of $120,000 and a negative balance of $1,000 in the Allowance for Doubtful Accounts. Two-thirds of the accounts receivable are current and one-third is past due. The firm estimates that two percent of the current accounts and five percent of the past due accounts will prove to be uncollectible. The adjustment to provide for the bad debt expense under the aging method should be for what amount? $ 8,050Tanning company analyzes its receivables to estimate bad debt expense. The accounts receivable balance is 390,000 in credit sales are 1.3 million. An aging of accounts receivable shows that approximately 5% of the outstanding receivables will be uncollectible. What adjusting entry will tanning company make if the allowance for doubtful accounts has a credit balance of 2500 before adjustment?
- Blackhorse Productions, Inc., used the aging of accounts receivable method to estimate that its Allowance for Doubtful Accounts should be $23,550. The account had an unadjusted credit balance of $11,900 at that time. a. The appropriate bad debt adjustment was recorded. b. Later, an account receivable for $2,900 was determined to be uncollectible and was written off. Required: For each transaction listed above, indicate the amount and direction +for increase or -for decrease) of effects on the financial statement accounts and on the overall accounting equation. (Enter any decreases to Assets, Liabilities, or Stockholders Equity with a minus sign.) Assets Liabilities Stockholders' EquityTanning Company analyzes its receivables to estimate bad debt expense. The accounts receivable balance is $286,000 and credit sales are $1,000,000. An aging of accounts receivable shows that approximately 4% of the outstanding receivables will be uncollectible. What adjusting entry will Tanning Company make if the Allowance for Doubtful Accounts has a credit balance of $2,000 before adjustment? Select the correct answer. Bad Debt Expense$8,940 Accounts Receivable$8,940 Bad Debt Expense$10,440 Allowance for Doubtful Accounts$10,440 Bad Debt Expense$9,440 Allowance for Doubtful Accounts$9,440 Bad Debt Expense$8,440 Accounts Receivable$8,440Assume that Simple Co. had credit sales of $259,000 and cost of goods sold of $159,000 for the period. Simple uses the aging method and estimates that the appropriate ending balance in the Allowance for Doubtful Accounts is $3,900. Before the end-of-period adjustment is made, the Allowance for Doubtful Accounts has a credit balance of $340. What amount of Bad Debt Expense would the company record as an end-of-period adjustment?