Answered step by step
Verified Expert Solution
Question
1 Approved Answer
please just answer c & d. Question 1 - Accounts Receivable, Bad Debts and Allowance for Doubtfull Accounts The December 31, 2022 Balance Sheet of
please just answer c & d.
Question 1 - Accounts Receivable, Bad Debts and Allowance for Doubtfull Accounts The December 31, 2022 Balance Sheet of a company showed Accounts Receivable of $480,000 and an Allowance for Doubtful Accounts balance of $20,000 (credit balance). The following transactions occurred during 2023, - sales of $6,000,000 ( $5,500,000 on account plus cash sales of $500,000 ), - sales returns \& allowances $$0 - normal collections on account \$5,380,000; - accounts written off $20,000. - previously written off accounts of $1,000 were recovered (collected). Required: (a) Show how Accounts Receivable would be presented on a Balance Sheet at December 31, 2022 (disclose gross, allowance and Net Realizable Value). (b) Journalize all 2023 transactions affecting Accounts Receivable or the "Allowance" account. (c) Prepare T-accounts for Accounts Receivable and Allowance for Doubtful Accounts and post the current year transactions. Indicate the unadjusted year end balances. (d) Using the percentage of receivables basis to estimate bad debt expense and assuming they estimate that uncollectible accounts will be 4% of accounts receivable: i. Write the adjusting journal entry required at December 31, 2023? (show calculations please) ii. What will Allowance for Doubtful Accounts be on December 31, 2023 Balance Sheet? iii. What will Bad debts expense be on the Income Statement for 2023 ? c) Prepare T-accounts for Accounts Receivable and Allowance for Doubtful Accounts Indicate unadjusted year end balances as well as adjusted balances for Financial Statements d) i) December 31, 2023 adjusting journal entry \begin{tabular}{|l|l|l|} \hline Bad debts expense & & \\ \hline Allowance for Doubtful Accounts & & \\ \hline \end{tabular} show calculation of amounts here. Step 1 and step 2. ii) Allowance for Doubtful Accounts Balance Sheet December 31, 2023 iii) Bad debts expense for the year 2023Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started