Serial Problem Business Solutions LO P1, P2
Santana Rey, owner of Business Solutions, realizes that she needs to begin accounting for bad debts expense. Assume that Business Solutions has total revenues of $62,000 during the first three months of 2018, and that the Accounts Receivable balance on March 31, 2018, is $22,767.
Required:
1a. Prepare the adjusting entry needed for Business Solutions to recognize bad debts expense, which are estimated to be 1% of total revenues on March 31, 2018 (assume a zero unadjusted balance in the Allowance for Doubtful Accounts at March 31).
1b. Prepare the adjusting entry needed for Business Solutions to recognize bad debts expense, which are estimated to be 2% of accounts receivable on March 31, 2018 (assume a zero unadjusted balance in the Allowance for Doubtful Accounts at March 31).
2. Assume that Business Solutions' Accounts Receivable balance at June 30, 2018, is $20,850 and that one account of $99 has been written off against the Allowance for Doubtful Accounts since March 31, 2018. If S. Rey uses the method prescribed in part 1b, what adjusting journal entry must be made to recognize bad debts expense on June 30, 2018?
Req 1A
Prepare the adjusting entry needed for Business Solutions to recognize bad debts expense, which are estimated to be 1% of total revenues on March 31, 2018 (assume a zero unadjusted balance in the Allowance for Doubtful Accounts at March 31).
Journal entry worksheet
Record estimated bad debts.
Req 1B
Prepare the adjusting entry needed for Business Solutions to recognize bad debts expense, which are estimated to be 2% of accounts receivable on March 31, 2018 (assume a zero unadjusted balance in the Allowance for Doubtful Accounts at March 31).
Journal entry worksheet
Record estimated bad debts.
Req 2
Assume that Business Solutions' Accounts Receivable balance at June 30, 2018, is $20,850 and that one account of $99 has been written off against the Allowance for Doubtful Accounts since March 31, 2018. If S. Rey uses the method prescribed in part 1b, what adjusting journal entry must be made to recognize bad debts expense on June 30, 2018?
Journal entry worksheet
Record the estimated bad debts.
Serial Problem Business Solutions LO P1, P2
Santana Rey, owner of Business Solutions, realizes that she needs to begin accounting for bad debts expense. Assume that Business Solutions has total revenues of $62,000 during the first three months of 2018, and that the Accounts Receivable balance on March 31, 2018, is $22,767.
Required:
1a. Prepare the adjusting entry needed for Business Solutions to recognize bad debts expense, which are estimated to be 1% of total revenues on March 31, 2018 (assume a zero unadjusted balance in the Allowance for Doubtful Accounts at March 31).
1b. Prepare the adjusting entry needed for Business Solutions to recognize bad debts expense, which are estimated to be 2% of accounts receivable on March 31, 2018 (assume a zero unadjusted balance in the Allowance for Doubtful Accounts at March 31).
2. Assume that Business Solutions' Accounts Receivable balance at June 30, 2018, is $20,850 and that one account of $99 has been written off against the Allowance for Doubtful Accounts since March 31, 2018. If S. Rey uses the method prescribed in part 1b, what adjusting journal entry must be made to recognize bad debts expense on June 30, 2018?
Req 1A
Prepare the adjusting entry needed for Business Solutions to recognize bad debts expense, which are estimated to be 1% of total revenues on March 31, 2018 (assume a zero unadjusted balance in the Allowance for Doubtful Accounts at March 31).
Journal entry worksheet
Record estimated bad debts.
Req 1B
Prepare the adjusting entry needed for Business Solutions to recognize bad debts expense, which are estimated to be 2% of accounts receivable on March 31, 2018 (assume a zero unadjusted balance in the Allowance for Doubtful Accounts at March 31).
Journal entry worksheet
Record estimated bad debts.
Req 2
Assume that Business Solutions' Accounts Receivable balance at June 30, 2018, is $20,850 and that one account of $99 has been written off against the Allowance for Doubtful Accounts since March 31, 2018. If S. Rey uses the method prescribed in part 1b, what adjusting journal entry must be made to recognize bad debts expense on June 30, 2018?
Journal entry worksheet
Record the estimated bad debts.
Related questions
Adria Lopez, owner of Success Systems, realizes that she needsto begin accounting for bad debts expense. Assume that SuccessSystems has total revenues of $50,000 during the first three monthsof 2014, and that the Accounts Receivable balance on March 31,2014, is $22,417. |
| Required: | |
| 1a. | Prepare the adjusting entry needed for Success Systems torecognize bad debts expense, which are estimated to be 1% of totalrevenues on March 31, 2014 (assume a zero unadjusted balance in theAllowance for Doubtful Accounts at March 31). |
| 1b. | Prepare the adjusting entry needed for Success Systems torecognize bad debts expense, which are estimated to be 2% ofaccounts receivable on March 31, 2014 (assume a zero unadjustedbalance in the Allowance for Doubtful Accounts at March 31). |
| 2. | Assume that Success Systems' Accounts Receivable balance at June30, 2014, is $20,800 and that one account of $82 has been writtenoff against the Allowance for Doubtful Accounts since March 31,2014. If Adria Lopez uses the method prescribed in Part1b, what adjusting journal entry must be made to recognizebad debts expense on June 30, 2014? |
