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RTP Limited experienced the following in 2019: 2019 Net Credit Sales Revenue $35,000 Allowance for Uncollectible Accts (AUA), beginning balance $800 (credit) Accounts Receivable, ending
RTP Limited experienced the following in 2019: 2019 Net Credit Sales Revenue $35,000 Allowance for Uncollectible Accts (AUA), beginning balance $800 (credit) Accounts Receivable, ending balance (12/31/19) $12,000. Of this A/R balance, $10,000 is 0-30 days past due with a 10% chance it will not be collected and $2,000 is 31-60 days past due with a 20% chance it will not be collected. 1 Uncollectible accounts are determined by the percent-of-credit-sales method to be 3% of credit sales. What amount of bad debt expense would be recorded for the adjusting journal entry under the percent-of-credit-sales method? 2 RTP uses the aging method to record uncollectible accounts. What is the net realizable value for Accounts Receivable as reported in the balance sheet at the end of the year if the aging method was used in 2019? 3 RTP uses the aging method to record uncollectible accounts. What amount of bad debt expense would be recorded for the adjusting journal entry under the aging method? Uncollectible accounts are determined by the percent-of-credit-sales method to be 3% of credit sales. Excluding the amount, what journal entry is correct for the 2019 adjustment: 5 RTP uses the aging method to record uncollectible accounts. Excluding the amount, what journal entry is correct for the 2019 adjustment: 6 RTP learns that $1,000 will be uncollectible from a customer due to a bankruptcy. What is the journal entry needed to reflect this
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