Gideon Company uses the allowance method of accounting for uncollectible accounts. On May 3, the Gideon Company wrote off the $4,300 uncollectible account of its customer, A. Hopkins. The entry or entries Gideon makes to record the write off of the account on May 3 is:

Multiple Choice

• Accounts ReceivableA. Hopkins	4,300
  Bad debts expense		4,300
  Cash	4,300
  Accounts ReceivableA. Hopkins		4,300

• Accounts ReceivableA. Hopkins	4,300
  Allowance for Doubtful Accounts		4,300

• Cash	4,300
  Accounts ReceivableA. Hopkins		4,300

• Allowance for Doubtful Accounts	4,300
  Accounts ReceivableA. Hopkins		4,300

• Allowance for Doubtful Accounts	4,300
  Bad debts expense		4,300

A company ages its accounts receivables to determine its end of period adjustment for bad debts. At the end of the current year, management estimated that $35,250 of the accounts receivable balance would be uncollectible. Prior to any year-end adjustments, the Allowance for Doubtful Accounts had a debit balance of $1,025. What adjusting entry should the company make at the end of the current year to record its estimated bad debts expense?

Multiple Choice

• Accounts Receivable	35,250
  Bad Debts Expense	1,025
  Sales		36,275

• Bad Debts Expense	36,275
  Allowance for Doubtful Accounts		36,275

• Bad Debts Expense	34,225
  Allowance for Doubtful Accounts		34,225

• Bad Debts Expense	35,250
  Allowance for Doubtful Accounts		35,250

• Accounts Receivable	36,275
  Allowance for Doubtful Accounts		36,275

On December 31 of the current year, the unadjusted trial balance of a company using the percent of receivables method to estimate bad debt included the following: Accounts Receivable, debit balance of $98,100; Allowance for Doubtful Accounts, credit balance of $1,051. What amount should be debited to Bad Debts Expense, assuming 4% of outstanding accounts receivable at the end of the current year are estimated to be uncollectible?

Multiple Choice

• $2,873.

• $4,975.

• $1,981.

• $1,051.

• $3,924.

The following selected amounts are reported on the year-end unadjusted trial balance report for a company that uses the percent of sales method to determine its bad debts expense.

Accounts receivable	$	440,000	Debit
Allowance for Doubtful Accounts		1,300	Debit
Net Sales		2,150,000	Credit

All sales are made on credit. Based on past experience, the company estimates 3.0% of credit sales to be uncollectible. What adjusting entry should the company make at the end of the current year to record its estimated bad debts expense?

Multiple Choice

• Debit Bad Debts Expense $13,200; credit Allowance for Doubtful Accounts $13,200.

• Debit Bad Debts Expense $65,800; credit Allowance for Doubtful Accounts $65,800.

• Debit Bad Debts Expense $63,200; credit Allowance for Doubtful Accounts $63,200.

• Debit Bad Debts Expense $14,500; credit Allowance for Doubtful Accounts $14,500.

• Debit Bad Debts Expense $64,500; credit Allowance for Doubtful Accounts $64,500.