PLEASE HELP. The system says both are wrong.
1.
Don't know why this answer is wrong.
2. Same issue with this question.
Chou Company uses the aging approach to estimate bad debt expense. The ending balance of each account receivable is aged on the basis of three time periods as follows: (1) not yet due, $285,000; (2) up to 120 days past due, $51,000; and (3) more than 120 days past due, $29,000. Experience has shown that for each age group, the average loss rate on the amount of the receivables at year-end due to uncollectibility is (1) 3.0 percent, (2) 11 percent, and (3) 31 percent, respectively. At December 31, the end of the current year, the Allowance for Doubtful Accounts balance is $400 (credit) before the end-of-period adjusting entry is made. Required: 1. Prepare the appropriate bad debt expense adjusting entry for the current year. 2. Show how the various accounts related to accounts receivable should be shown on the December 31, current year, balance sheet. Answer is not complete. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Prepare the appropriate bad debt expense adjusting entry for the current year. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) No Date General Journal Credit Debit 22,750 December 31 Bad debt expense Allowance for doubtful accounts 22,750 - Required 1 Required 2 Chou Company uses the aging approach to estimate bad debt expense. The ending balance of each account receivable is aged on the basis of three time periods as follows: (1) not yet due, $285,000; (2) up to 120 days past due, $51,000; and (3) more than 120 days past due, $29,000. Experience has shown that for each age group, the average loss rate on the amount of the receivables at year-end due to uncollectibility is (1) 3.0 percent, (2) 11 percent, and (3) 31 percent, respectively. At December 31, the end of the current year, the Allowance for Doubtful Accounts balance is $400 (credit) before the end-of-period adjusting entry is made. Required: 1. Prepare the appropriate bad debt expense adjusting entry for the current year. 2. Show how the various accounts related to accounts receivable should be shown on the December 31, current year, balance sheet. Answer is not complete. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Show how the various accounts related to accounts receivable should be shown on the December 31, current year, balance sheet. (Amounts to be deducted should be indicated by a minus sign.) CHOU COMPANY Partial Balance Sheet As of December 31 Accounts receivable Allowance for doubtful accounts Accounts receivable $365,000 (22,750) 342,250 $ 684,500 At the end of the prior year, Durney's Outdoor Outfitters reported the following information. 11.11 points Accounts Receivable, Dec. 31, prior year Accounts Receivable (Gross) (A) $ Allowance for Doubtful Accounts (XA) Accounts Receivable (Net) (1) $ 48,199 8,439 39,760 During the current year, sales on account were $305,798, collections on account were $290,400, write-offs of bad debts were $7,024, and the bad debt expense adjustment was $4.740. Required: 1-a. Complete the Accounts Receivable and Allowance for Doubtful Accounts T-accounts to determine the balance sheet values. Disregard income tax considerations. 1-b. Complete the amounts related to Accounts Receivable and Bad Debt Expense that would be reported on the income statement for the current year. 1-c. Complete the amounts related to Accounts Receivable and Bad Debt Expense that would be reported on the balance sheet for the current year. X Answer is not complete. Complete this question by entering your answers in the tabs below. Req 1A Reg 1B Req 1C Complete the Accounts Receivable and Allowance for Doubtful Accounts T-accounts to determine the balance sheet values. Disregard income tax considerations. Beg. bal. Sales on account Accounts Receivable (Gross) 48,199 305,798 290,400 Collections on acct. 7,024 Write-offs Allowance for Doubtful Accounts 8,439 7,024 4,740 Beg. bal. Bad debt expense Write-offs End. bal. 56,573 6,155 End. bal. Req 1A Req 1B > At the end of the prior year, Durney's Outdoor Outfitters reported the following information. Accounts Receivable, Dec. 31, prior year Accounts Receivable (Gross) (A) $ Allowance for Doubtful Accounts (XA) Accounts Receivable (Net) (A) $ 11.11 points 48,199 8,439 39,760 During the current year, sales on account were $305,798, collections on account were $290,400, write-offs of bad debts were $7,024, and the bad debt expense adjustment was $4,740. Required: 1-a. Complete the Accounts Receivable and Allowance for Doubtful Accounts T-accounts to determine the balance sheet values. Disregard income tax considerations. 1-b. Complete the amounts related to Accounts Receivable and Bad Debt Expense that would be reported on the income statement for the current year. 1-c. Complete the amounts related to Accounts Receivable and Bad Debt Expense that would be reported on the balance sheet for the current year. Answer is not complete. Complete this question by entering your answers in the tabs below. Req 1A Req 1B Req 1C Complete the amounts related to Accounts Receivable and Bad Debt Expense that would be reported on the income statement for the current year. DURNEY'S OUTDOOR OUTFITTERS Income Statement (Partial) For the Year Ended December 31 Selling, general, and administrative expenses: Bad debt expense $4,740 At the end of the prior year, Durney's Outdoor Outfitters reported the following information. 11.11 points Accounts Receivable, Dec. 31, prior year Accounts Receivable (Gross) (A) $ Allowance for Doubtful Accounts (XA) Accounts Receivable (Net) (A) $ 48,199 8,439 39,760 During the current year, sales on account were $305,798, collections on account were $290,400, write-offs of bad debts were $7,024, and the bad debt expense adjustment was $4,740. Required: 1-a. Complete the Accounts Receivable and Allowance for Doubtful Accounts T-accounts to determine the balance sheet values Disregard income tax considerations. 1-b. Complete the amounts related to Accounts Receivable and Bad Debt Expense that would be reported on the income statement for the current year. 1-c. Complete the amounts related to Accounts Receivable and Bad Debt Expense that would be reported on the balance sheet for the current year. X Answer is not complete. Complete this question by entering your answers in the tabs below. Req 1A Req 1B Req 1C Complete the amounts related to Accounts Receivable and Bad Debt Expense that would be reported on the balance sheet for the current year. (Amounts to be deducted should be indicated by a minus sign.) DURNEY'S OUTDOOR OUTFITTERS Balance Sheet (Partial) As of December 31 Current assets: Accounts receivable Allowance for doubtful accounts Accounts receivable X 56,573 6,155 50,418 X 113,146
