Question

Manning Co. shows the following account balances on October 31, 2024, its fiscal year-end. Account Debit...

Manning Co. shows the following account balances on October 31, 2024, its fiscal year-end.

Account

Debit

Credit

Accounts receivable

         71,000

Allowance for doubtful accounts

              1,300

Sales ($66,000 cash sales)

         505,000

The company’s accountant estimates bad debts to be 3.5% of credit sales.
Business   Accounting   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1
Date Account titles and explanation Debit Credit
October 31, 2024 Bad debt expense $        15,365
Allowance for doubtful accounts $         15,365
To record bad debts expense. ((505000-66000)*3.50%)

Additional infornation

Net realizable value of accounts receivable = $54335

Manning Company
Partial Balance sheet
October 31, 2024
Assets
Current Assets
Accounts receivable $        71,000
Less: Allowance for doubtful accounts (1300+15365) $        16,665
Accounts receivable, Net $         54,335
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
Assume the following unadjusted account balances at the end of the accounting period for Emmie Company:...
Assume the following unadjusted account balances at the end of the accounting period for Emmie Company: Accounts Receivable, $300,000; Allowance for Doubtful Accounts, $4,200 (debit balance); and Net sales, $3,600,000. If Emmie’s past experience indicates credit losses of 1% of net sales, the adjusting entry to estimate doubtful accounts is: Select one: A. Bad Debts Expense 40,200 Allowance for Doubtful Accounts 40,200 B. Bad Debts Expense 31,800 Allowance for Doubtful Accounts 31,800 C. Bad Debts Expense 36,000 Accounts Receivable 36,000...
The ledger of the Tortillo company at the end of the current year shows Accounts Receivable...
The ledger of the Tortillo company at the end of the current year shows Accounts Receivable of $110,000 and Sales of $700,000. Journalize the adjusting entry for end of the period for each of the following independent scenarios: a) If Allowance for Doubtful Accounts has a debit balance of $2,000 in the trial balance and bad debts are expected to be 6% of accounts receivable. b) If Allowance for Doubtful Accounts has a credit balance of $2,200 in the trial...
The ledger of the Tortillo company at the end of the current year shows Accounts Receivable...
The ledger of the Tortillo company at the end of the current year shows Accounts Receivable of $110,000 and Sales of $700,000. Journalize the adjusting entry for end of the period for each of the following independent scenarios: a) If Allowance for Doubtful Accounts has a debit balance of $2,000 in the trial balance and bad debts are expected to be 6% of accounts receivable. b) If Allowance for Doubtful Accounts has a credit balance of $2,200 in the trial...
The ledger of Whispering Winds Corp. at the end of the current year shows Accounts Receivable...
The ledger of Whispering Winds Corp. at the end of the current year shows Accounts Receivable $108,000; Sales Revenue $849,000; and Sales Returns and Allowances $24,500. (a) If Whispering Winds uses the direct write-off method to account for uncollectible accounts, journalize the adjusting entry at December 31, assuming Whispering Winds determines that L. Dole’s $1,700 balance is uncollectible. (b) If Allowance for Doubtful Accounts has a credit balance of $2,200 in the trial balance, journalize the adjusting entry at December...
The following selected amounts are reported on the year-end unadjusted trial balance report for a company...
The following selected amounts are reported on the year-end unadjusted trial balance report for a company that uses the percent of sales method to determine its bad debts expense. Accounts receivable $ 430,000 Debit Allowance for Doubtful Accounts 1,400 Debit Net Sales 2,250,000 Credit All sales are made on credit. Based on past experience, the company estimates 1.0% of credit sales to be uncollectible. What adjusting entry should the company make at the end of the current year to record...
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....
The ledger of Sunland Company at the end of the current year shows Accounts Receivable $73,000,...
The ledger of Sunland Company at the end of the current year shows Accounts Receivable $73,000, Credit Sales $819,000, and Sales Returns and Allowances $42,400. Prepare journal entries for each separate scenario below. (a) If Sunland Company uses the direct write-off method to account for uncollectible accounts, journalize the adjusting entry at December 31, assuming Sunland Company determines that Matisse’s $1,100 balance is uncollectible. (b) If Allowance for Doubtful Accounts has a credit balance of $1,300 in the trial balance,...
The ledger of Costello Company at the end of the current year shows Accounts Receivable $130,000,...
The ledger of Costello Company at the end of the current year shows Accounts Receivable $130,000, Sales Revenue $849,000, and Sales Returns and Allowances $27,000. There is a credit balance in Allowance for doubtful accounts of $6,500. Costello uses the % of sales method for allowance for bad debts. Costello will be using 2% of net sales for their adjustment this year. Record the entry for the allowance at year end Account Debit Credit In February, a receivable in the...
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...
For their fiscal year ended December 31, 2017, the Zurich Inc. had credit sales of $750,000....
For their fiscal year ended December 31, 2017, the Zurich Inc. had credit sales of $750,000. At year end, the unadjusted trial balance shows a credit balance of $1,958 in the Allowance for Doubtful Accounts, and $140,000 in Accounts Receivable. The credit manager prepared an aging schedule of accounts receivable and estimates that $5,200 will prove to be uncollectible. On March 4, 2018 the credit manager authorizes a write off of the $2,000 balance owed by Francis Ltd.. Instructions (a)    ...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT