Question

Jay Inc. estimates uncollectible accounts using the percentage-of-receivables method and expects that 6.2% of outstanding receivables...

Jay Inc. estimates uncollectible accounts using the percentage-of-receivables method and expects that 6.2% of outstanding receivables will be uncollectible for 2016. The balance in Accounts Receivable is $1,444,000, and the Allowance for Doubtful Accounts has a credit balance of $7,210 before adjustments at year-end. The Bad Debt Expense for 2016 will be: Select one: a. None of these b. $96,738 c. $89,528 d. $82,318

Homework Answers

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
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...
1. Using the percentage-of-receivables method for recording bad debt expense, estimated uncollectible accounts are $72000. If...
1. Using the percentage-of-receivables method for recording bad debt expense, estimated uncollectible accounts are $72000. If the balance of the Allowance for Doubtful Accounts is an $14400 debit before adjustment, what is the balance after adjustment? A. $72000 B. $14400 C. $86400 D. $57600 2. In reviewing the accounts receivable, the cash receivable value is $25400 before the write-off of a $1800 account. What is the cash receivable value after the write-off? A. $25400 B. $1800 C. $27200 D. $23600...
rose company uses the percentage of receivables method for recording bad debt expense. the accounts receivable...
rose company uses the percentage of receivables method for recording bad debt expense. the accounts receivable balance is $25,000 and credit sales ar $100,000. management estimates that 6% of accounts receivable will be uncollectible. what adjusting entry will rose company make if the allowance for doubtful accounts has a balance of $250 before adjustment?
Blazer Company has outstanding Accounts Receivables of $1,000,000 on December 31 based on Credit Sales of...
Blazer Company has outstanding Accounts Receivables of $1,000,000 on December 31 based on Credit Sales of $3,000,000 for the year. Rich Carvajal, Chief Accountant at Blazer, estimates that 5% of their receivables will be uncollectible. He also determines that the Allowance for Doubtful Accounts has a $7,000 credit balance on December 31 prior to any adjustments. On March 1, Blazer determines that a $5,000 account owed by GTech Corp will be uncollectible. If Blazer uses the Allowance Method to account...
Daley Company estimates uncollectible accounts using the allowance method on December 31. It prepared the following...
Daley Company estimates uncollectible accounts using the allowance method on December 31. It prepared the following aging of receivables analysis. Days Past Due Total 0 1 to 30 31 to 60 61 to 90 Over 90 Accounts receivable $ 570,000 $ 396,000 $ 90,000 $ 36,000 $ 18,000 $ 30,000 Percent uncollectible 1 % 2 % 5 % 7 % 10 % a. Estimate the balance of the Allowance for Doubtful Accounts assuming the company uses 4.5% of total accounts...
Windsor, Inc. uses the percentage-of-receivables basis to record bad debt expense and concludes that 3% of...
Windsor, Inc. uses the percentage-of-receivables basis to record bad debt expense and concludes that 3% of accounts receivable will become uncollectible. Accounts receivable are $427,700 at the end of the year, and the allowance for doubtful accounts has a credit balance of $2,540. (a) Prepare the adjusting journal entry to record bad debt expense for the year. (b) If the allowance for doubtful accounts had a debit balance of $979 instead of a credit balance of $2,540, prepare the adjusting...
Daley Company estimates uncollectible accounts using the allowance method at December 31. It prepared the following...
Daley Company estimates uncollectible accounts using the allowance method at December 31. It prepared the following aging of receivables analysis. Days Past Due Total 0 1 to 30 31 to 60 61 to 90 Over 90 Accounts receivable $ 660,000 $ 414,000 $ 108,000 $ 54,000 $ 36,000 $ 48,000 Percent uncollectible 1 % 2 % 5 % 7 % 10 % a. Estimate the balance of the Allowance for Doubtful Accounts assuming the company uses 6% of total accounts...
Star World Inc. generated $500,000 in credit sales. The company uses the percentage of sales method...
Star World Inc. generated $500,000 in credit sales. The company uses the percentage of sales method to estimate uncollectible accounts. The ending accounts receivable balance is $150,000. It was determined that 9% of credit sales will be uncollectible. Allowance for doubtful accounts holds a current balance of $10,000. The entry to record the above expense will include: Select one: a. a debit to Allowance for Doubtful Accounts for $45,000 b. a debit to Bad Debt Expense for $10,000 c. a...
Daley Company estimates uncollectible accounts using the allowance method at December 31. It prepared the following...
Daley Company estimates uncollectible accounts using the allowance method at December 31. It prepared the following aging of receivables analysis. Days Past Due Total 0 1 to 30 31 to 60 61 to 90 Over 90 Accounts receivable $ 645,000 $ 411,000 $ 105,000 $ 51,000 $ 33,000 $ 45,000 Percent uncollectible 1 % 2 % 5 % 7 % 10 % a. Complete the below table to calculate the estimated balance of Allowance for Doubtful Accounts using the aging...
Abbott Company uses the allowance method of accounting for uncollectible accounts. Abbott estimates that 3% of...
Abbott Company uses the allowance method of accounting for uncollectible accounts. Abbott estimates that 3% of credit sales will be uncollectible. On January 1, the Allowance for Doubtful Accounts had a credit balance of $3,800. During the year, Abbott wrote-off accounts receivable totaling $2,400 and made credit sales of $96,000. After the adjusting entry, the December 31 balance in Bad Debt Expense would be?
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT