A company used the percent of sales method to determine its bad debts expense. At the end of the current year, the company's unadjusted trial balance reported the following selected amounts: Accounts receivable Allowance for uncollectible accounts Net sales 299,000 debit 360 credit 1,080,000 credit All sales are made on credit. Based on past experience, the company estimates 0.5% of credit sales to be uncollectible. What amount should be debited to Bad Debts Expense when the year-end adjusting entry is prepared? Multiple Choice O $5,400 O $54,000 O O $2,700 O $1,135 O $1,495 O A company ages its accounts receivables to determine its end of period adjustment for bad debts. At the end of the current year, management estimated that $41,875 of the accounts receivable balance would be uncollectible. Prior to any year-end adjustments, the Allowance for Doubtful Accounts had a credit balance of $3,518. What adjusting entry should the company make at the end of the current year to record its estimated bad debts expense? Multiple choice O 45,393 Bad Debt Expense Allowance for Doubtful Accounts 45,393 Bad Debt Expense Allowance for Doubtful Accounts 38,357 38,357 Bad Debt Expense Allowance for Doubtful Accounts 41,875 41,875 Account Receivable Bad Debt expense Sales 41,875 3,5181 45,393 Sales 38,357 Account Receivable Allowance for Doubtful Accounts 38,357 The following information is from the annual financial statements of Nancy Company. Net sales Account receivable, net (year-end) 2013 2012 2011 $342,000 $266,000 $313,000 51,400 48,500 45,200 What is the accounts receivable turnover ratio for 2012? Multiple Choice O 5.68 6.65 O 6.92 O 48,367 O 5.50 A company used the percent of sales method to determine its bad debts expense. At the end of the current year, the company's unadjusted trial balance reported the following selected amounts: Accounts receivable Allowance for uncollectible accounts Net sales 299,000 debit 360 credit 1,080,000 credit All sales are made on credit. Based on past experience, the company estimates 0.5% of credit sales to be uncollectible. What amount should be debited to Bad Debts Expense when the year-end adjusting entry is prepared? Multiple Choice O $5,400 O $54,000 O O $2,700 O $1,135 O $1,495 O A company ages its accounts receivables to determine its end of period adjustment for bad debts. At the end of the current year, management estimated that $41,875 of the accounts receivable balance would be uncollectible. Prior to any year-end adjustments, the Allowance for Doubtful Accounts had a credit balance of $3,518. What adjusting entry should the company make at the end of the current year to record its estimated bad debts expense? Multiple choice O 45,393 Bad Debt Expense Allowance for Doubtful Accounts 45,393 Bad Debt Expense Allowance for Doubtful Accounts 38,357 38,357 Bad Debt Expense Allowance for Doubtful Accounts 41,875 41,875 Account Receivable Bad Debt expense Sales 41,875 3,5181 45,393 Sales 38,357 Account Receivable Allowance for Doubtful Accounts 38,357 The following information is from the annual financial statements of Nancy Company. Net sales Account receivable, net (year-end) 2013 2012 2011 $342,000 $266,000 $313,000 51,400 48,500 45,200 What is the accounts receivable turnover ratio for 2012? Multiple Choice O 5.68 6.65 O 6.92 O 48,367 O 5.50
