Providing for Doubtful Accounts
At the end of the current year, the accounts receivable accounthas a debit balance of 6,125,000 and net sales for the year total$66,800,000..
A. The allowance account before adjustment has a debit balanceof 18,000. Bad debt expense is estimated at 3/4 of 1% of netsales.
B. The allowance account before adjustment has a debit balanceof 18,000. An aging of the accounts in the customer ledgerindicates estimated doubtful accouints of $475,000.
c. The allowance account before adjustment has a credit balanceof $10,000. Bad debt expense is estimated at 1/2 of 1% of netsales.
D. The allowance account before adjustment has a credit balanceof $ 10,000. An aging of the accounts in the customer ledgerindicates estimated doubtful accounts of $ 360,000.
Determine theamount of the adjusting entry to provide for doubtful accountsunder each of the assumptions ( A through D) listed above.
A. $ _______________
B. $ ________________
C. $ _________________
D. $ _________________
Providing for Doubtful Accounts
At the end of the current year, the accounts receivable accounthas a debit balance of 6,125,000 and net sales for the year total$66,800,000..
A. The allowance account before adjustment has a debit balanceof 18,000. Bad debt expense is estimated at 3/4 of 1% of netsales.
B. The allowance account before adjustment has a debit balanceof 18,000. An aging of the accounts in the customer ledgerindicates estimated doubtful accouints of $475,000.
c. The allowance account before adjustment has a credit balanceof $10,000. Bad debt expense is estimated at 1/2 of 1% of netsales.
D. The allowance account before adjustment has a credit balanceof $ 10,000. An aging of the accounts in the customer ledgerindicates estimated doubtful accounts of $ 360,000.
Determine theamount of the adjusting entry to provide for doubtful accountsunder each of the assumptions ( A through D) listed above.
A. $ _______________
B. $ ________________
C. $ _________________
D. $ _________________
