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Cogs for Dogs Co. has many customers who buy their shoes on account. The company started with an Allowance for Bac debts credit balance of
Cogs for Dogs Co. has many customers who buy their shoes on account. The company started with an Allowance for Bac debts credit balance of $10,000 on 1/1/20. During the year the company wrote-off bad debts summing to $13,000. Clog for Dogs Co. determines the allowance account as 3% of receivables. The current year receivables were $400,000. Before year end, ZooShoes paid a previously written off debt of $2,000 to Clogs for Dogs Co. 36) What would the journal entry for the ZooShoes account recovery look like? 37) Taking into account the information in Question 36 , what amount is the adjustment to the Allowance for Doubtf Accounts at year end? A $12,000 B. $11,000 C. $13,000 D. $10,000 38) What would the adjustment amount in Question 37 be if Clogs for Dogs had only written off $11,000 during the year (instead of $13,000) ? A. $12,000 B. $11,000 C. $13,000 D. $10,000 39) Assuming a beginning credit balance of $500 in the allowance account, what would be the adjusting journal entry be to establish the Allowance for Bad debts? 40) Where are all of my (Margo's) new blue sharpie permanent markers?? A. The same place as all of my missing socks B. Gollum stole the preciouses C. Students steal them as a prankI HA, "we basically pay for them anyway..." D. Professor Sawyer keeps sticking them in his pocket and takes them home, then turns around and blames everyone else
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