Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Providing for Doubtful Accounts At the end of the current year, the accounts receivable account has a debit balance of $ 1 , 0 5

Providing for Doubtful Accounts
At the end of the current year, the accounts receivable account has a debit balance of $1,058,000 and sales for the year total $12,000,000.
The allowance account before adjustment has a credit balance of $14,300. Bad debt expense is estimated at 1/4 of 1% of sales.
The allowance account before adjustment has a credit balance of $14,300. An aging of the accounts in the customer ledger indicates estimated doubtful accounts of $45,800.
The allowance account before adjustment has a debit balance of $8,900. Bad debt expense is estimated at 3/4 of 1% of sales.
The allowance account before adjustment has a debit balance of $8,900. An aging of the accounts in the customer ledger indicates estimated doubtful accounts of $73,900.
Determine the amount of the adjusting entry to provide for doubtful accounts under each of the assumptions (a through d) listed above.
a. $fill in the blank 1
30,000
b. $fill in the blank 2
31,500
c. $fill in the blank 3
90,000
d. $fill in the blank 4

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Essentials Of Managerial Accounting

Authors: Kurt Heisinger

1st Edition

0618436693, 978-0618436699

More Books

Students also viewed these Accounting questions