Accounting help
38. GAAP requires most companies to use the A. direct write-off method to estimate bad debts B. allowance method to estimate bad debts C. amortization method to estimate bad debts D. 360-day method to estimate bad debts 39. The Allowance for Bad Debts account has a credit balance of $2,000. The company's management estimates that 2 % of net credit sales will be uncollectible for the year 2015. Net credit sales for the year amounted to $250,000. What will be the amount of Bad Debts Expense reported on the income statement for 2015? A. $5,000 B. $3,075 C. $2,875 D. $2,675 40. The Allowance for Bad Debts account has a credit balance of $2,000 before the adjusting entry for bad debt expense. The company's management estimates that 2% of net credit sales will be uncollectible for the year 2015. Net credit sales for the year amounted to $250,000. What will be the balance of the Allowance for Bad Debts reported on the balance sheet at December 31, 2015? A. $7,275 B. $3,075 C. $7,000 D. $5,285 41. The Allowance for Bad Debts has a credit balance of $9,000 before the adjusting entry for bad debt expense. After analyzing the accints in the accounts receivable subsidiary ledger using the aging method, the company's manageiat eetmates that uncollectible accounts will be S15,000. What will be the amount of bad debts expense reporied on the income statement? A. $24,000 B.$6,000 C. $15,000 D. $9,000 42. The Allowance for Bad Debts account has a debit balance of $6,000 before the adjusting entry for bae debt expense. After analyzing the accounts in the accounts receivable subsidiary ledger, the company's management estimates that uncollectible accounts will be $10,000. What will be the amount of the adjustment in the Allowance for Bad Debts account? A. $15,250 B. $10,000 C. $14,900 D. $16,000 43. A company reports net accounts receivable of $150,000 on its December 31, 2015 balance sheet, The Allowance for Bad Debts has a credit balance of $15,000. What is the balance in Accounts Receivable? A.$155,000 B. $150,000 C. $165,000 D. $135,000
