At the end of the current year, the accounts receivable account has a debit bala
ID: 2479350 • Letter: A
Question
At the end of the current year, the accounts receivable account has a debit balance of $1,125,000 and net sales for the year total $12,750,000.
The allowance account before adjustment has a credit balance of $15,200. Bad debt expense is estimated at 3/4 of 1% of net sales.
The allowance account before adjustment has a credit balance of $15,200. An aging of the accounts in the customer ledger indicates estimated doubtful accounts of $48,600.
The allowance account before adjustment has a debit balance of $7,900. Bad debt expense is estimated at 1/2 of 1% of net sales.
The allowance account before adjustment has a debit balance of $7,900. An aging of the accounts in the customer ledger indicates estimated doubtful accounts of $65,600.
Determine the amount of the adjusting entry to provide for doubtful accounts under each of the assumptions (a through d) listed above.
a. b. c. d.Explanation / Answer
a. $ 80,425 b. $ 33,400 c. $ 71,650 d. $ 73,500
Related Questions
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.