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Please help, I don't understand any of these!! Thank you!!!! A company has $101,000 in outstanding accounts receivable and it uses the allowance method to
Please help, I don't understand any of these!! Thank you!!!!
A company has $101,000 in outstanding accounts receivable and it uses the allowance method to account for uncollectible accounts. Experience suggests that 3% of outstanding receivables are uncollectible. The current balance before adjustments) in the allowance for doubtful accounts is an $910 debit. The journal entry to record the adjustment to the allowance account includes a debit to Bad Debts Expense for: Multiple Choice 0 O $3.940 0 $2,120 0 O $3,030 0 None of these is correct 0 $910 A company has $106,000 in outstanding accounts receivable and it uses the allowance method to account for uncollectible accounts. Experience suggests that 5% of outstanding receivables are uncollectible. The current balance (before adjustments) in the allowance for doubtful accounts is an $960 credit. The journal entry to record the adjustment to the allowance account includes a debit to Bad Debts Expense for: Multiple Choice O $5,252 O $5,300 O $5,348 O $4.340 O $6.260 A company uses the percent of sales method to determine its bad debts expense. At the end of the current year, the company's unadjusted trial balance reported the following selected amounts: Accounts receivable Allowance for uncollectible accounts Net Sales $392,000 debit 6 70 credit 970,000 credit All sales are made on credit. Based on past experience, the company estimates that 0.6% of net credit sales are uncollectible. What amount should be debited to Bad Debts Expense when the year-end adjusting entry is prepared? Multiple Choice 0 O $4704 0 O $2,404 0 O $5,820 0 O $1734 0 O $6,044 Craigmont uses the allowance method to account for uncolectible accounts. Its year-end unadjusted trial balance shows Accounts Receivable of $120,500, allowance for doubtful accounts of $825 credit and sales of $100,000. If uncollectible accounts are estimated to be 0.8% of sales, what's the amount of the bad debts expense ad usting entry? Multiple Choice o o 37,215 o o $8,040 o 38,165 o Sa, B65 o o s8,240Step by Step Solution
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