ACCT 203 Lecture 20: GMU ACCOUNTING 203 Lecture 20
GMU ACCOUNTING 203 Lecture 20
Bailey Company has $200,000 of accounts receivable on December 31, 2013. The
unadjusted balance of its Allowance for Doubtful Accounts is a debit of $9,000. An
aging of its accounts receivable suggests that $12,000 of its receivables will be
uncollectible. The amount that should be debited to Bad Debt Expense and
credited to Allowance for Doubtful Accounts in the year-end adjusting entry is
_____.
$21,000
Kirov, Inc. reports credit sales of $200,000 for the year ending December 31,
2013. The year-end unadjusted balance of its Allowance for Doubtful Accounts is
a debit of $9,000. Experience suggests 6 percent of its net sales will be
uncollectible. The amount that should be debited to Bad Debt Expense and
credited to Allowance for Doubtful Accounts in its year-end adjusting entry is
_____.
$12,000 (Remember that after computing this estimate, we use that amount in
the adjusting entry.) The estimated bad debt expense is $12,000 (or $200,000 x
6%). The adjusting entry involves a debit to Bad Debt Expense for $12,000 and a
credit to Allowance for Doubtful Accounts for $12,000.
On July 18, Jerry Pope signed a note when he borrowed $1,200 at 12 percent for
30 days from Second National Bank. In this situation _____.
Pope is the maker of the note (the one promising to pay the sum certain, with
interest, at a specific date). The bank is the payee (the one who will collect the
note at maturity).
A 60-day, 11 percent, promissory note dated June 10 matures on _____.
August 9th
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Document Summary
Bailey company has ,000 of accounts receivable on december 31, 2013. The unadjusted balance of its allowance for doubtful accounts is a debit of ,000. An aging of its accounts receivable suggests that ,000 of its receivables will be uncollectible. The amount that should be debited to bad debt expense and credited to allowance for doubtful accounts in the year-end adjusting entry is. Kirov, inc. reports credit sales of ,000 for the year ending december 31: the year-end unadjusted balance of its allowance for doubtful accounts is a debit of ,000. Experience suggests 6 percent of its net sales will be uncollectible. The amount that should be debited to bad debt expense and credited to allowance for doubtful accounts in its year-end adjusting entry is. ,000 (remember that after computing this estimate, we use that amount in the adjusting entry. ) The estimated bad debt expense is ,000 (or ,000 x.