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The information provided below relates to accounts receivable for the Spangle Corp. as at December 31, 20X1 just prior to the recording of adjusting entries
The information provided below relates to accounts receivable for the Spangle Corp. as at December 31, 20X1 just prior to the recording of adjusting entries at year end. Cr. Dr. $125,000 Accounts receivable Allowance for doubtful accounts Sales (90 % on credit) $ 3,700 700,000 Question 11 (2 points) What would be the amount for the bad debt expense journal entry assuming that the company uses percent-of-sales and a rate of 1 percent? $_ Question 12 (2 points) What would be the amount for the bad debt expense journal entry if instead the company uses the aging method of accounts receivable and uses 7% for all receivables? Remember to treat this question as independent from the first question. $ Question 13 (2 points) Assume instead that before doing the year end bad debt expense entry in 1 and 2 above, that Spangle Corp wrote off $5,000 in accounts receivable. What would be the amount for the bad debt expense journal entry assuming the write off happens first and then the company uses the percent-of-sales method and a rate of 1 percent? $_ Question 14 (4 points) What would be the amount for the bad debt expense journal entry assuming the write off happens first and the company uses the aging method of accounts receivable and uses 7% for all receivables? Remember to treat this question as independent from the previous question. $
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