Question

1. Kingbird Company’s unadjusted trial balance at December 31, 2020, included the following accounts. Debit Credit...

1. Kingbird Company’s unadjusted trial balance at December 31, 2020, included the following accounts.

Debit

Credit

Accounts receivable $55,400
Allowance for doubtful accounts 5,960
Net sales $1,262,800


Kingbird Company estimates its bad debt expense to be 6% of gross accounts receivable. Determine its bad debt expense for 2020.

Bad debt expense for 2020

$


3. Waterway Co. provides for doubtful accounts based on 2% of gross accounts receivable, The following data are available for 2020.

Credit sales during 2020 $4,351,800
Bad debt expense 58,400
Allowance for doubtful accounts 1/1/20 15,380
Collection of accounts written off in prior years (customer credit was reestablished) 8,190
Customer accounts written off as uncollectible during 2020 28,860


What is the balance in Allowance for Doubtful Accounts at December 31, 2020?

Allowance for doubtful accounts 12/31/20

$

4. At the end of its first year of operations, December 31, 2020, Wildhorse Inc. reported the following information.

Accounts receivable, net of allowance for doubtful accounts $898,100
Customer accounts written off as uncollectible during 2020 21,630
Bad debt expense for 2020 82,350


What should be the balance in accounts receivable at December 31, 2020, before subtracting the allowance for doubtful accounts?

Accounts receivable, before deducting allowance for doubtful accounts

$

Homework Answers

Answer #1
1
Estimated uncollectible 3324 =55400*6%
Add: Allowance for doubtful accounts debit balance 5960
Bad debt expense for 2020 9284
3
Allowance for doubtful accounts 1/1/20 15380
Add: Bad debt expense 58400
Add: Collection of accounts written off 8190
Less: Customer accounts written off -28860
Allowance for doubtful accounts 12/31/20 53110
4
Accounts receivable, net of allowance for doubtful accounts 898100
Add: Allowance for doubtful accounts 60720 =82350-21630
Accounts receivable, before deducting allowance for doubtful accounts 958820
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
3. Splish Co. provides for doubtful accounts based on 3% of gross accounts receivable, The following...
3. Splish Co. provides for doubtful accounts based on 3% of gross accounts receivable, The following data are available for 2020. Credit sales during 2020 $448,000 Bad debt expense 58,020 Allowance for doubtful accounts 1/1/20 17,340 Collection of accounts written off in prior years (customer credit was reestablished) 8,290 Customer accounts written off as uncollectible during 2020 29,650 What is the balance in Allowance for Doubtful Accounts at December 31, 2020? Allowance for doubtful accounts 12/31/20 $
From inception of operations to December 31, 2020, Kingbird Corporation provided for uncollectible accounts receivable under...
From inception of operations to December 31, 2020, Kingbird Corporation provided for uncollectible accounts receivable under the allowance method. The provisions are recorded, based on analyses of customers with different risk characteristics. Bad debts written off were charged to the allowance account; recoveries of bad debts previously written off were credited to the allowance account, and no year-end adjustments to the allowance account were made. Kingbird’s usual credit terms are net 30 days. The balance in Allowance for Doubtful Accounts...
On December 31, 2020, Corotel Company’s year-end, the unadjusted trial balance included the following items: Account...
On December 31, 2020, Corotel Company’s year-end, the unadjusted trial balance included the following items: Account Debit Credit Accounts receivable $ 2,140,000 Allowance for doubtful accounts 37,000 Sales ($3,210,000 cash sales) $ 12,840,000 Required: 1. Prepare the adjusting entry needed in Corotel’s books to recognize bad debts under each of the following independent assumptions. Bad debts are estimated to be 2% of credit sales. An analysis suggests that 5% of outstanding accounts receivable on December 31, 2020, will become uncollectible....
At January 1, 2020, the credit balance of Blue Spruce Corp.’s Allowance for Doubtful Accounts was...
At January 1, 2020, the credit balance of Blue Spruce Corp.’s Allowance for Doubtful Accounts was $411,000. During 2020, the bad debt expense entry was based on a percentage of net credit sales. Net sales for 2020 were $79 million, of which 89% were on account. Based on the information available at the time, the 2020 bad debt expense was estimated to be 0.80% of net credit sales. During 2020, uncollectible receivables amounting to $481,000 were written off against the...
A series of unrelated situations follow for several companies that use ASPE: A. Skysong Inc.’s unadjusted...
A series of unrelated situations follow for several companies that use ASPE: A. Skysong Inc.’s unadjusted trial balance at December 31, 2020, included the following accounts: Debit Credit Allowance for doubtful accounts $8,600 Sales revenue $2,070,000 Sales returns and allowances 60,500 Sales discounts 4,800 Skysong estimates its bad debt expense to be 2.0% of net sales. Determine its bad debt expense for 2020. (Round answer to 0 decimal places, e.g. 58,971.) B. An analysis and aging of Grouper Corp.’s accounts...
From its first day of operations to December 31, 2020, Pronghorn Corp. provided for uncollectible accounts...
From its first day of operations to December 31, 2020, Pronghorn Corp. provided for uncollectible accounts receivable under the allowance method: 1. Entries for bad debt expense were made monthly based on 2.5% of credit sales. 2. Bad debts that were written off were charged to the Allowance for Doubtful Accounts. 3. Recoveries of bad debts previously written off were credited to the allowance account. 4. No year-end adjustments were made to the allowance account. The balance in Allowance for...
2. The December 31, 2019, unadjusted trial balance of Linn Ltd contained the following balances: Accounts...
2. The December 31, 2019, unadjusted trial balance of Linn Ltd contained the following balances: Accounts receivable $200,000 Allowances for uncollectible accounts $12,000 CR Credit sales in 2019 $700,000 Credit sales return in 2019 $100,000 In addition, the firm has given up trying to collect a $9,500 receivable from a customer who recently declared bankruptcy. Linn's management has not yet written off the amount but intends to do so before the books are closed for the year. Required: I. Assuming...
2. The December 31, 2019, unadjusted trial balance of Linn Ltd contained the following balances: Accounts...
2. The December 31, 2019, unadjusted trial balance of Linn Ltd contained the following balances: Accounts receivable $200,000 Allowances for uncollectible accounts $12,000 CR Credit sales in 2019 $700,000 Credit sales return in 2019 $100,000 In addition, the firm has given up trying to collect a $9,500 receivable from a customer who recently declared bankruptcy. Linn's management has not yet written off the amount but intends to do so before the books are closed for the year. Required: I. Assuming...
At December 31, 2016, the trial balance of Garvey Company contained the following amount before adjustment....
At December 31, 2016, the trial balance of Garvey Company contained the following amount before adjustment.                                                                                                                                            Debits          Credits          Accounts Receivable                   $ 500,000                            Allowance for Doubtful Accounts                         $     4,800                      Sales Revenue                                          2,400,000 Instructions: (a)  Prepare the adjusting entry at December 31, 2016, for bad debts expense assuming that the aging schedule indicates that $26,000 of accounts receivables will be uncollectible.. (b)  Repeat part (a), assuming that instead of a credit balance there is a $4,800 debit balance in the Allowance for Doubtful Accounts. (c)  During the next month, January 2017,...
A trial balance before adjustments included the following: Debit      Credit Sales                 $850,000 Sales returns and allowance      ...
A trial balance before adjustments included the following: Debit      Credit Sales                 $850,000 Sales returns and allowance       $28,000 Accounts receivable          86,000 Allowance for doubtful accounts       1,520 (A) If the estimate of uncollectibles is made by taking 10% of Gross Account Receivables, the amount of the adjustment (bad debt expense) is ? (B) The amount of the adjustment (bad debt expense) is? If the Allowance for doubtful accounts has balance of debit $1,820 ? (C) Please use the result of (A) to...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT