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At December 31, 2011, Ethan Company reports the following results for its calendar-year. Cash sales$2,195,910 Credit sales 2,987,000 Accounts receivable$905,061 debit Allowance for doubtful accounts

At December 31, 2011, Ethan Company reports the following results for its calendar-year.

Cash sales$2,195,910 Credit sales 2,987,000

Accounts receivable$905,061 debit Allowance for doubtful accounts 21,430 debit

1.

Prepare the adjusting entry for this company to recognize bad debts under each of the following independent assumptions. (Round your intermediate calculations and and final answers to the nearest dollar amount. Omit the "$" sign in your response.)

a. Bad debts are estimated to be 3% of credit sales.
b. Bad debts are estimated to be 2% of total sales.
c. An aging analysis estimates that 6% of year-end accounts receivable are uncollectible.
Adjusting entries (all dated December 31, 2011).

General Journal Debit Credit
a. (Click to select)Accounts payableCashOffice suppliesBad debts expenseSalaries expenseAccounts receivableRent expenseAllowance for doubtful accounts
(Click to select)Accounts receivableOffice suppliesRent expenseSalaries expenseAccounts payableCashAllowance for doubtful accountsBad debts expense
b. (Click to select)CashOffice suppliesRent expenseAccounts receivableAccounts payableBad debts expenseSalaries expenseAllowance for doubtful accounts
(Click to select)Accounts payableAllowance for doubtful accountsAccounts receivableCashOffice suppliesSalaries expenseBad debts expenseRent expense
c. (Click to select)Accounts receivableCashRent expenseAccounts payableOffice suppliesAllowance for doubtful accountsSalaries expenseBad debts expense
(Click to select)Office suppliesRent expenseBad debts expenseCashAllowance for doubtful accountsSalaries expenseAccounts receivableAccounts payable

2.

Show how Accounts Receivable and the Allowance for Doubtful Accounts appear on its December 31, 2011, balance sheet given the facts in part 1a. (Amounts to be deducted should be indicated with minus sign. Omit the "$" sign in your response.)

Current assets:
(Click to select)SalesAccounts receivableBad debts expenseAllowance for doubtful accountsNotes receivable $
(Click to select)Accounts receivableLess: Allowance for doubtful accountsAdd: Allowance for doubtful accountsAccounts payableBad debts expense $

3.

.

Show how Accounts Receivable and the Allowance for Doubtful Accounts appear on its December 31, 2011, balance sheet given the facts in part 1c. (Round your intermediate calculations and final answers to the nearest dollar amount. Amounts to be deducted should be indicated with minus sign. Omit the "$" sign in your response.)

Current assets:
(Click to select)Notes receivableBad debts expenseAccounts receivableSalesAllowance for doubtful accounts $
(Click to select)Accounts receivableLess: Allowance for doubtful accountsBad debts expenseAccounts payableAdd: Allowance for doubtful accounts $

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