Question
Compute the ending balances (not the journal entry) in Allowance for Doubtful Accounts and Bad Debt Expense for each of the following independent situations. The
Compute the ending balances (not the journal entry) in Allowance for Doubtful Accounts and Bad Debt Expense for each of the following independent situations. The ending balance in Accounts Receivable is $90,000 and the credit Sales for the year totaled $1,100,000.
1. Credit balance of $1,500 in Allowance for Doubtful Accounts prior to adjustment. Uncollectibles are estimated at 2% of credit sales.
a) Allowance for Doubtful Accounts $__________ b) Net Realizable Accounts Receivable $__________
2. Debit balance of $1,400 in Allowance for Doubtful Accounts prior to adjustment. Uncollectibles are estimated at 2% of credit sales.
c) Allowance for Doubtful Accounts $__________ d) Bad Debt Expense $__________
3. Credit balance of $1,500 in Allowance for Doubtful Accounts prior to adjustment. Uncollectibles are estimated at 7% of accounts receivable.
e) Net Realizable Accounts Receivable $__________ f) Bad Debt Expense $__________
4. Debit balance of $1,400 in Allowance for Doubtful Accounts prior to adjustment. Uncollectibles are estimated at 7% of accounts receivable.
g) Allowance for Doubtful Accounts $__________ h) Bad Debt Expense $__________
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