Question
Crane Company uses the percentage-of-receivables basis to record bad debt expense. Accounts receivable (ending balance) $550,000 (debit) Allowance for doubtful accounts (unadjusted) 5,300 (debit) The
Crane Company uses the percentage-of-receivables basis to record bad debt expense.
| Accounts receivable (ending balance) | $550,000 | (debit) | |
| Allowance for doubtful accounts (unadjusted) | 5,300 | (debit) |
The company estimates that 2% of accounts receivable will become uncollectible. (a) Prepare the adjusting journal entry to record bad debt expense for the year. (Credit account titles are automatically indented when amount is entered. Do not indent manually.)
| Account Titles and Explanation | Debit | Credit |
(b) What is the ending (adjusted) balance in Allowance for Doubtful Accounts?
| Ending (adjusted) balance in Allowance for Doubtful Accounts | $ |
(c) What is the cash (net) realizable value?
| Cash (net) realizable value | $ |
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Financial Accounting For Decision Makers
Authors: Dr Peter Atrill, Eddie Mclaney, Sin Autor
5th Edition
1405888210, 9781405888219
