S 85 Adjusting entry to estimate bad debts-percentage of sales L02, 3 exton Company uses the allowance method to account for uncollectible accounts receivable. At yearend, October 31, it was estimated that 0.6% of net credit sales were uncollectible based on past experience. Net sales were $690.000, of which 2/3 were on credit. Record the entry at year end to estimate uncollectible receivables. 2S 86 Adjusting entry to estimate bad debts-aging of receivables L02, 3 Dim Sum Foods has accounts receivable of S260,000 and the allowance for doubtful accounts has a credit balance of $6,000. Based on analyzing the aging of the accounts receivable management determined that the appropriate ending balance in the allowance for doubtful accounts at yearend, December 31, should be $26,000. a. Draw a Taccount for the allowance for doubtful accounts and fill it in with all of the given information b. Determine the amount of bad debt expense that needs to be recorded c. Prepare the adjusting journal entry to record the estimated bad debts at yearend, QS 8-7 Adjusting entry to estimate bad debts-percentage of receivables Lo2, 3 Page 575 Foster Company uses the allowance method to account for uncollectible accounts receivable. At year-end, December 31, the unadjusted balance in the Allowance for Doubtful Accounts was $450 credit. Based on past experience, it was estimated that 2.5% of the Accounts ibla halune of $40,000 was callesibo Recandahendusting entra estimatebadidehist December 31 S 85 Adjusting entry to estimate bad debts-percentage of sales L02, 3 exton Company uses the allowance method to account for uncollectible accounts receivable. At yearend, October 31, it was estimated that 0.6% of net credit sales were uncollectible based on past experience. Net sales were $690.000, of which 2/3 were on credit. Record the entry at year end to estimate uncollectible receivables. 2S 86 Adjusting entry to estimate bad debts-aging of receivables L02, 3 Dim Sum Foods has accounts receivable of S260,000 and the allowance for doubtful accounts has a credit balance of $6,000. Based on analyzing the aging of the accounts receivable management determined that the appropriate ending balance in the allowance for doubtful accounts at yearend, December 31, should be $26,000. a. Draw a Taccount for the allowance for doubtful accounts and fill it in with all of the given information b. Determine the amount of bad debt expense that needs to be recorded c. Prepare the adjusting journal entry to record the estimated bad debts at yearend, QS 8-7 Adjusting entry to estimate bad debts-percentage of receivables Lo2, 3 Page 575 Foster Company uses the allowance method to account for uncollectible accounts receivable. At year-end, December 31, the unadjusted balance in the Allowance for Doubtful Accounts was $450 credit. Based on past experience, it was estimated that 2.5% of the Accounts ibla halune of $40,000 was callesibo Recandahendusting entra estimatebadidehist December 31
