Kieso, Intermedlate Accounting, Joe Help I System Announcements CALCULATOR PRINT
ID: 2438350 • Letter: K
Question
Kieso, Intermedlate Accounting, Joe Help I System Announcements CALCULATOR PRINTER VERSION BACK NEXT Multiple Choice Question 98 Waterway Industries has outstanding accounts receivable totaling $6.47 million as of December 31 and sales on credit during the year of $23.2 million. There is also a credit balance of $12000 in the allowance for doubtful accounts. If the company estimates that 5% of its outstanding receivables will be uncollectible, what will be the amount of bad debt expense recognized for the year? O $ 33550o. O $ 32350o. O $ 1160000. $311500 Click if you would like to Show Work for this question: Open Show Work Question Attempts: O of 1 sed SAVE FOR LATER SUBMIT ANSWExplanation / Answer
Answer
A
Accounts receivables on Dec 31
$ 6,470,000.00
B = A x 5%
5% Uncollectible = Adjusted ending balance of Allowance account
$ 323,500.00 Credit
C [given]
Unadjusted Allowance for Doubtful account balance
$ 12,000.00 Credit
D = B - C
Amount of Bad Debt Expense by which Allowance account need to be credited with to maintain $ 323,500 Credit balance
$ 311,500.00
Accounts titles
Debit
Credit
Bad Debt Expense
$ 311,500.00
Allowance for Doubtful accounts
$ 311,500.00
5% Uncollectible Accounts receivables
$ 323,500.00
Unadjusted Allowance account balance
$ 12,000.00
Bad Debt Expense
$ 311,500.00
Adjusted Balance of Allowance for Doubtful accounts
$ 323,500.00
A
Accounts receivables on Dec 31
$ 6,470,000.00
B = A x 5%
5% Uncollectible = Adjusted ending balance of Allowance account
$ 323,500.00 Credit
C [given]
Unadjusted Allowance for Doubtful account balance
$ 12,000.00 Credit
D = B - C
Amount of Bad Debt Expense by which Allowance account need to be credited with to maintain $ 323,500 Credit balance
$ 311,500.00
Related Questions
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.