Allowance Method for Accounting for Bad Debes At the burring of 2012,7 Tech Couny Anonsable de R$149,000, then in Allowance for noreful Arenarts was $2,50111.17 Tch' wees in 2017 WA $1,150,000, HUIS : mich were on credit. One contrat during the prawer $71/1,000. The many arcf$4,000 of uncelcctible accounts during the year Reguired: 1. Identify and analyze the sales during 2017 Aativity Operating Accounts Cash Increaso. Accounts Receivable Tennis, Sales Revenue Increase HMV) Balance Shot and income Statement Prashers CN. Net How does this entry affect the accounting ecuation? If ancial statement tem is not affected, select 'No Entry and leave the amount box blanc. If the effect on a trencal statement item is negathe ,, a decrease, be sure to enter the answer with a minus sign Balance Sheet Income Statement Stockholders Assets Labilities Equity Revenues Cash 222,000 No Entry 0 ol 1,110,000 Sales Revenue 1.110,000 No Entry Atxounts Receivable 8.88,000 No Entry O No Entry No Entry Expenses Income 1.110,000 0 o Preces Check, What O Identify and rule the anat en related to the collection of rendering 2017. Activity Operating Account Cash Inc, Account Recuivable Decres sumanits) Balance Shest only Preces Nuk Hun dot this entry ar Tact the accounting cuation? If a frandal statement item is not affected, select "No Entry and cave the amount bax blanc Ir the circct on a rinandal statement item is negative, I., a decrease, be sure to enter the answer with a minus sgn. Balance Sheet Income Statement Stockholders Net Asset Liabilities Equity Revenue Expens Income Cash 710,000 No Entry o 0 No Entry 0 0 ol No Entry Na Entry Accounts Runnival -710,000 No Entry o o Nn Entry o 0 Fercher Nyers Identify and analyze the transactions related to the write-ot: ct accounts receivable during 2017 Operating Allowance for Doubtful Accounts Decrease accounts Receivable Decrease Statements) Balance Sheet only Feest Car Wars Ilow does this entry srfect the accounting equation? If a financial staili e affecte: "No Fry and the corner box lilarik. If the feet on a financial la iluminat , I., adema, tanterie answer with a minign. Ramber: if a cria cauti il, it will the effect of thing the correpancing financial statement item. If a conta cocunt & dexed, it will have the effect of increasing the corresponding financial statement item. Kance sheet Income Statement Stockholders Net Assets Liabilities Equity Revensies Expenses Income Allowance for Doubtful Accounts 4,000 Nn Entry o o Na Entry No Entry - 0 0 Account Rurulable -4,000 No Entry ol Na Entry . Ne Entry D 0 Terrors O Nas 2. Identify and analyze the adjustments to recognize bad debts assuming that (a) bad debts expense is 1% of trecitales and (b) amounts expected to be unccllectible are 5% of the year-erc accounts receivable. 1. Identify and analyse the adjustments to regni balsa-uming that balletis expensis 4 of credit ale Artinity Operating Accounts Allowance for Doubtful Accounts Increase, Bad Debts Expense Increase . Statements) Balance Sheet and name Statement - Charles How does this wytrysrfect the counting ustion? If a financial state neviens ned, sed "No Ency and are the amount box lank. Ottona marcial cement en la negative, i., a deserto the act with a minus sign. Ratif at Blois sed, it will have the creator asing the corresponding financial statement item. If a conta account is dressed, it wil have the circct of increasing the corresponding finandal statement item. Balance Sheet Income Statement Stockholders' Nst Assets) Liabilities Equity Revenues Expenses Income Allowance for both Arraunts -35,520 No Entry - 0 -35,520 No Entry o Bad Debts ExpP 35,520 -35,5207 Forch Ou Nos Com b. Identify and analyze the schstments to recogrize bad debts assuming that amounts expected to be uncolest ble are 5% of the year-end courts receivable Atlity Operating 4.Counts Allowance for Doubtful Accounts Increase, Bad Debts Expense Increase Statements) Balance Sheet and Income Statement Paustos Char Now Harm or the viry Tact the Arcting til If a financial statement item is not affected, select "No Erary and kave the amount box blank. If the affect on a hinancial statement com a negative, i., a decrease be sure to enter the answer with a minus sign. Remember if a contra 20count is increased, it will have the clfect of de/casing the caresponding Mnancial statement item. If a conta account is depressed. It will have the cffcct of increasing the corresponding Finandal statement item. Balance Sheet Income Statement Stockholders' AANS Liabilities Equity Revenue Expenses Income Allowance for Doulatul Accounts No Entry No Entry Bad Debts Expense Net 20,010 X 3. What is the net realizable value of accounts receivable on December 31, 2017, under each assumption in part (2)? Using the percentage of sales approach, the net realizable value of the receivables is? Using the percentage of year-end receivables approach, the net realizable value of the receivables is? $ 4. The recognition of bad debts expense reduces the net realizable value by the amount recorded in bad debts expense and the allowance for doubtful accounts . The write-off of accounts has no effect on the net realizable value. Feedback Check My Work Feedback Check My Work Allowance Method for Accounting for Bad Debes At the burring of 2012,7 Tech Couny Anonsable de R$149,000, then in Allowance for noreful Arenarts was $2,50111.17 Tch' wees in 2017 WA $1,150,000, HUIS : mich were on credit. One contrat during the prawer $71/1,000. The many arcf$4,000 of uncelcctible accounts during the year Reguired: 1. Identify and analyze the sales during 2017 Aativity Operating Accounts Cash Increaso. Accounts Receivable Tennis, Sales Revenue Increase HMV) Balance Shot and income Statement Prashers CN. Net How does this entry affect the accounting ecuation? If ancial statement tem is not affected, select 'No Entry and leave the amount box blanc. If the effect on a trencal statement item is negathe ,, a decrease, be sure to enter the answer with a minus sign Balance Sheet Income Statement Stockholders Assets Labilities Equity Revenues Cash 222,000 No Entry 0 ol 1,110,000 Sales Revenue 1.110,000 No Entry Atxounts Receivable 8.88,000 No Entry O No Entry No Entry Expenses Income 1.110,000 0 o Preces Check, What O Identify and rule the anat en related to the collection of rendering 2017. Activity Operating Account Cash Inc, Account Recuivable Decres sumanits) Balance Shest only Preces Nuk Hun dot this entry ar Tact the accounting cuation? If a frandal statement item is not affected, select "No Entry and cave the amount bax blanc Ir the circct on a rinandal statement item is negative, I., a decrease, be sure to enter the answer with a minus sgn. Balance Sheet Income Statement Stockholders Net Asset Liabilities Equity Revenue Expens Income Cash 710,000 No Entry o 0 No Entry 0 0 ol No Entry Na Entry Accounts Runnival -710,000 No Entry o o Nn Entry o 0 Fercher Nyers Identify and analyze the transactions related to the write-ot: ct accounts receivable during 2017 Operating Allowance for Doubtful Accounts Decrease accounts Receivable Decrease Statements) Balance Sheet only Feest Car Wars Ilow does this entry srfect the accounting equation? If a financial staili e affecte: "No Fry and the corner box lilarik. If the feet on a financial la iluminat , I., adema, tanterie answer with a minign. Ramber: if a cria cauti il, it will the effect of thing the correpancing financial statement item. If a conta cocunt & dexed, it will have the effect of increasing the corresponding financial statement item. Kance sheet Income Statement Stockholders Net Assets Liabilities Equity Revensies Expenses Income Allowance for Doubtful Accounts 4,000 Nn Entry o o Na Entry No Entry - 0 0 Account Rurulable -4,000 No Entry ol Na Entry . Ne Entry D 0 Terrors O Nas 2. Identify and analyze the adjustments to recognize bad debts assuming that (a) bad debts expense is 1% of trecitales and (b) amounts expected to be unccllectible are 5% of the year-erc accounts receivable. 1. Identify and analyse the adjustments to regni balsa-uming that balletis expensis 4 of credit ale Artinity Operating Accounts Allowance for Doubtful Accounts Increase, Bad Debts Expense Increase . Statements) Balance Sheet and name Statement - Charles How does this wytrysrfect the counting ustion? If a financial state neviens ned, sed "No Ency and are the amount box lank. Ottona marcial cement en la negative, i., a deserto the act with a minus sign. Ratif at Blois sed, it will have the creator asing the corresponding financial statement item. If a conta account is dressed, it wil have the circct of increasing the corresponding finandal statement item. Balance Sheet Income Statement Stockholders' Nst Assets) Liabilities Equity Revenues Expenses Income Allowance for both Arraunts -35,520 No Entry - 0 -35,520 No Entry o Bad Debts ExpP 35,520 -35,5207 Forch Ou Nos Com b. Identify and analyze the schstments to recogrize bad debts assuming that amounts expected to be uncolest ble are 5% of the year-end courts receivable Atlity Operating 4.Counts Allowance for Doubtful Accounts Increase, Bad Debts Expense Increase Statements) Balance Sheet and Income Statement Paustos Char Now Harm or the viry Tact the Arcting til If a financial statement item is not affected, select "No Erary and kave the amount box blank. If the affect on a hinancial statement com a negative, i., a decrease be sure to enter the answer with a minus sign. Remember if a contra 20count is increased, it will have the clfect of de/casing the caresponding Mnancial statement item. If a conta account is depressed. It will have the cffcct of increasing the corresponding Finandal statement item. Balance Sheet Income Statement Stockholders' AANS Liabilities Equity Revenue Expenses Income Allowance for Doulatul Accounts No Entry No Entry Bad Debts Expense Net 20,010 X 3. What is the net realizable value of accounts receivable on December 31, 2017, under each assumption in part (2)? Using the percentage of sales approach, the net realizable value of the receivables is? Using the percentage of year-end receivables approach, the net realizable value of the receivables is? $ 4. The recognition of bad debts expense reduces the net realizable value by the amount recorded in bad debts expense and the allowance for doubtful accounts . The write-off of accounts has no effect on the net realizable value. Feedback Check My Work Feedback Check My Work