Question
Providing for Doubtful Accounts At the end of the current year, the accounts receivable account has a debit balance of $2,700,000 and sales for the
Providing for Doubtful Accounts
At the end of the current year, the accounts receivable account has a debit balance of $2,700,000 and sales for the year total $32,400,000.
- The allowance account before adjustment has a debit balance of $27,100. Bad debt expense is estimated at of 1% of sales.
- The allowance account before adjustment has a debit balance of $27,100. An aging of the accounts in the customer ledger indicates estimated doubtful accounts of $128,000.
- The allowance account before adjustment has a credit balance of $17,900. Bad debt expense is estimated at of 1% of sales.
- The allowance account before adjustment has a credit balance of $17,900. An aging of the accounts in the customer ledger indicates estimated doubtful accounts of $279,000.
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 b. $fill in the blank 2 c. $fill in the blank 3 d. $fill in the blank 4
Providing for Doubtful Accounts
At the end of the current year, the accounts receivable account has a debit balance of $2,700,000 and sales for the year total $32,400,000.
- The allowance account before adjustment has a debit balance of $27,100. Bad debt expense is estimated at of 1% of sales.
- The allowance account before adjustment has a debit balance of $27,100. An aging of the accounts in the customer ledger indicates estimated doubtful accounts of $128,000.
- The allowance account before adjustment has a credit balance of $17,900. Bad debt expense is estimated at of 1% of sales.
- The allowance account before adjustment has a credit balance of $17,900. An aging of the accounts in the customer ledger indicates estimated doubtful accounts of $279,000.
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 |
| b. | $fill in the blank 2 |
| c. | $fill in the blank 3 |
| d. | $fill in the blank 4 |
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Data Analytics Using Excel Microsoft 365 With Accounting And Finance Datasets Version 3.0
Authors: Joseph Manzo
1st Edition
145333758X, 9781453337585
