Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

2. What would be the adjusting journal entry (what account to debit and credit, and the dollar amount) in each of the following independent scenarios

image text in transcribed

2. What would be the adjusting journal entry (what account to debit and credit, and the dollar amount) in each of the following independent scenarios (4pts each no narrative response required, only the journal entry and amounts): a. Soaps & Stuff uses the Percent-of-Sales method to estimate uncollectible accounts, estimating 3% of their sales as bad debts. October sales totaled $200,000. The Allowance for Bad Debt account has a credit balance of $1,000 on Sept. 30 (the previous month-end). What is the adjusting entry at the end of October? b. Rockin' Robin uses the Percent-of-Receivables method to estimate uncollectible accounts, estimating that 6% of their Total Receivables will be uncollectible. As of July 31, the total A/R balance is $100,000. The Allowance for Bad Debt account has a debit balance of $500 on June 30 (the previous month-end). What is the adjusting entry at the end of July? C. Javelins 'R' Us uses the Aging-of-Receivables method to estimate uncollectible accounts. On Dec. 31, the company analyzes their A/R Aging report and estimates that $5,000 will be uncollectible. The Allowance for Bad Debt account has a credit balance of $2,000 on Nov. 30 (the previous month-end). What is the adjusting entry at the end of December

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Communication In The Age Of Trump

Authors: Arthur S. Hayes

1st Edition

1433150301, 9781433150302

More Books

Students also viewed these Accounting questions