Question

E7-9.   (Computing Bad Debts and Preparing Journal Entries) (LO 3) The trial balance before adjustment of...

E7-9.  

(Computing Bad Debts and Preparing Journal Entries)

(LO 3) The trial balance before adjustment of Taylor Swift Inc. shows the following balances.

Dr.

Cr.

Accounts Receivable

$90,000

Allowance for Doubtful Accounts

  1,750

Sales Revenue (all on credit)

$680,000

Instructions

Give the entry for estimated bad debts assuming that the allowance is to provide for doubtful accounts on the basis of (a) 4% of gross accounts receivable and (b) 5% of gross accounts receivable and Allowance for Doubtful Accounts has a $1,700 credit balance.

Business   Accounting   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

.

0 0
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
E7-7.   (Recording Bad Debts) (LO 3) Duncan Company reports the following financial information before adjustments. Dr....
E7-7.   (Recording Bad Debts) (LO 3) Duncan Company reports the following financial information before adjustments. Dr. Cr. Accounts Receivable $100,000 Allowance for Doubtful Accounts $  2,000 Sales Revenue (all on credit)  900,000 Sales Returns and Allowances   50,000 Instructions Prepare the journal entry to record Bad Debt Expense assuming Duncan Company estimates bad debts at (a) 5% of accounts receivable and (b) 5% of accounts receivable but Allowance for Doubtful Accounts had a $1,500 debit balance.
Entity G uses the percentage of receivables method for recording bad debts expense. The accounts receivable...
Entity G uses the percentage of receivables method for recording bad debts expense. The accounts receivable balance is $500,000. Management estimates that 5% of accounts receivable will be uncollectible. What adjusting entry will Entity G make if the Allowance for Doubtful Accounts has a credit balance of $4,000 before adjustment? Dr. Bad Debt Expense                                     21,000       Cr. Accounts Receivable                                             21,000 Dr. Bad Debt Expense                                     21,000       Cr. Allowance for Doubtful Accounts                      21,000 Dr. Bad Debt Expense...
E7-8.   (Recording Bad Debts) (LO 3) At the end of 2017, Aramis Company has accounts receivable...
E7-8.   (Recording Bad Debts) (LO 3) At the end of 2017, Aramis Company has accounts receivable of $800,000 and an allowance for doubtful accounts of $40,000. On January 16, 2018, Aramis Company determined that its receivable from Ramirez Company of $6,000 will not be collected, and management authorized its write-off. Instructions (a)   Prepare the journal entry for Aramis Company to write off the Ramirez receivable. (b)   What is the net realizable value of Aramis Company's accounts receivable before the write-off...
The trial balance before adjustment of Vegen Company reports the Accounts Receivable with a balance of...
The trial balance before adjustment of Vegen Company reports the Accounts Receivable with a balance of $600,000. All accounts have a normal balance unless stated otherwise. Required: Please show all calculations. (a) Assume that the Allowance for Doubtful Accounts has a normal balance of $8,000. Prepare the entry for estimated bad debts assuming that doubtful accounts are estimated to be 5% of accounts receivable. (b) Assume that the Allowance for Doubtful Accounts has a debit balance of $8,000. Prepare the...
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,...
The trial balance before adjustment for Phil Collins Company shows the following balances. Dr. Cr. Accounts...
The trial balance before adjustment for Phil Collins Company shows the following balances. Dr. Cr. Accounts Receivable $82,000 Allowance for Doubtful Accounts 2,120 Sales Revenue $430,000 Using the data above, give the journal entries required to record each of the following cases. (Each situation is independent.) 1. To obtain additional cash, Collins factors without recourse $25,000 of accounts receivable with Stills Finance. The finance charge is 10% of the amount factored. 2. To obtain a 1-year loan of $55,000, Collins...
Required information Problem 7-2A Estimating and reporting bad debts LO P2, P3 Skip to question [The...
Required information Problem 7-2A Estimating and reporting bad debts LO P2, P3 Skip to question [The following information applies to the questions displayed below.] At December 31, Hawke Company reports the following results for its calendar year. Cash sales $ 1,266,330 Credit sales $ 3,708,000 In addition, its unadjusted trial balance includes the following items. Accounts receivable $ 1,123,524 debit Allowance for doubtful accounts $ 16,940 debit Problem 7-2A Part 1 Required: 1. Prepare the adjusting entry to record bad...
1a. On June 1,2012, LinkIT Technologies made sales of $50,000 with terms 3/15, n/45. On June...
1a. On June 1,2012, LinkIT Technologies made sales of $50,000 with terms 3/15, n/45. On June 12, the company received full payment for the previous sale. Using the gross method and net method, prepare journal entries. 1b. The trial balances before adjustment are:          Accounts receivable Dr. $100,000       Allowance for doubtful accounts Cr. $    2,500      Sales (all on credit) Cr. 750,000      Sales returns and allowances Dr. 40,000 Using these numbers, prepare the entries for estimated bad...
On December 31, 2019 before adjusting entries, Accounts Receivable for Atlanta Company had a debit balance...
On December 31, 2019 before adjusting entries, Accounts Receivable for Atlanta Company had a debit balance of $600,000, and the Allowance for Doubtful Accounts had a credit balance of $18,000. Credit sales for the year were $4,800,000. If credit losses are estimated at 1% of credit sales: Select one: A. The balance of the Allowance for Doubtful Accounts will be $30,000 after adjustment B. The balance of the Allowance for Doubtful Accounts will be $66,000 after adjustment C. The balance...
A trial balance before adjustment included the following: Debit Credit Accounts receivable $120,000 Allowance for doubtful...
A trial balance before adjustment included the following: Debit Credit Accounts receivable $120,000 Allowance for doubtful accounts 730 Sales $510,000 Sales returns and allowances 8,000 Give journal entries assuming that the estimate of uncollectibles is determined by taking (1) 5% of gross accounts receivable and (2) 1% of net sales.
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT