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Guinevere Company has the following data extracted from its Accounts Receivable records at June 30, 2011 Customer Balance Current 31-75 days Over 75 days $8,000 $5,000 $2,000 $1,000 $2,000 $2,000 $4,000 $4,000 $9,000 $2,000 $1,000 $6,000 $3,000 $2,000 $1,000 $6,000 $6,000 $7,000 $3,000 $3,000 $1,000 Totals $39,000 $22,000 $8,000 $9,000 Guinevere's sales terms are 1/15 n/30 and it records sales at the gross amount of the invoice. - Guinevere's year end is June 30 The unadjusted balance in the Allowance for Doubtful Accounts at June 30 is $8,000 dr. Guinevere makes average sales of $2,000,000 per year and averages write offs of uncollectible balances of $100,000 per year. Sales for the year ended June 30, 2010 are $1,400,000 credit sales and $400,000 cash sales Guinevere has a very conservative receivables management strategy. - No adjusting entries have been recorded at June 30 Assume Customer F going bankrupt July 4. Assume also that on August 25 Guinevere receives a cheque in the mail from F Company for $6,000 with the following note attached. "The company has reorganized and is trying to restore its credit rating with all its former suppliers. Please accept this cheque with our apologies". Guinevere should: O Make a debit to Cash and credit Miscellaneous Income Make a debit to Cash and a credit to Accounts Receivable (after first reversing the write-off entry) O Some other entry O Make a debit to Cash and a credit to "Advances from Customers" Make a debit to Cash and credit Uncollectible Accounts Expense At December 31, 2012, Chambers Co. has gross accounts receivable of $127,000. There is a $10,000 credit balance in the allowance for doubtful accounts at the beginning of the year. During the year, the company had sales of $480,000, 30% of which were credit sales. The company uses the percentage of sales basis to estimate bad debt expense. Historically, bad debt expense has averaged 1.5% of credit sales. Actual write- offs of accounts receivable for 2012 amount to $3,240. The company's bad debt expense for 2012 is: O $2,160 O $10.000 O $7,200 O $1,905 O None of the other alternatives are correct The following is an Aged Accounts Receivable Listing for Company A at March 31, 2015 8,000 Customer Current 10-30 days 30-60 days 60+ % Uncollectible 0% 12% 3% 14% Adele 100,000 40,000 Bart 220,000 10,000 10,000 Carol 94,000 JO 7000 Dustin 80,000 75,000 12.000 4,000 10,000 The balance in the Allowance for Doubtful Accounts before any adjustment is $8,630 (the account is in its normal balance). What is the adjustment required to the Allowance for Doubtful Accounts to record provision for credit losses at March 31, 2015? O $4,390 debit $4,610 debit 0 $4,390 credit O None of the other alternatives are correct $4,610 credit General Toys Incorporated has an Accounts Receivable balance at year end of $160,000. The Allowance for Doubtful Accounts has a credit balance of $1,200 at year end. Upon review of the Accounts Receivable subsidiary you notice that there is $161,500 of debit balances and $1,500 of credit balances. At year end management prepared the following analysis: Aging Buckets Accounts Receivable Percentage doubtful Current $134.000 1% 0 - 60 days $15,000 5% 61-180 days $8,000 15% Over 6 months $4,500 35% Total $161,500 How much should be recorded for the provision for credit losses at year end for General Toys Incorporated based on management's analysis? None of the other alternatives are correct 0 $3,665 Dr. to allowance for doubtful accounts O O Od $3,665 Cr. to allowance for doubtful accounts $6,065 Cr. to allowance for doubtful accounts O $4,865 Cr. to allowance for doubtful accounts