Print tem Providing for Doubtful Accounts At the end of the current year, the ac

Question

Print tem Providing for Doubtful Accounts At the end of the current year, the accounts receivable account has a debit balance of $784,000 and sales for the year total $8,890,000. a. The allowance account before adjustment has a debit balance of $10,600. Bad debt expense is estimated at 1/4 of 1% of sales. b. The allowance account before adjustment has a debit balance of $10,600. An aging of the accounts in the customer ledger indicates estimated doubtful accounts of $33,900. c. The alliance account before ad estment has a credit balance of Mseo. Bad debt opense s estimated at 3/4 of i%of sies. d. The allowance account before adjustment has a credit balance of $4,900. An aging of the accounts in the customer ledger indicates estimated doubtful accounts of $40,700. Determine the amount of the adjusting entry to provide for doubtful accounts under each of the assumptions (a through d) listed above. b. d. + Insert PrtSc 0

Explanation / Answer

a Bad debt expense 22225 (8890000*1%*1/4)             Allowance for doubtful accounts 22225 b Estimated doubtful accounts 33900 Add Beginnning uncollectible balance 10600 Bad debt expense 44500 Adjusting entry Bad debt expense 44500             Allowance for uncollectible accounts 44500 C Bad debt expense 66675 (8890000*1%*3/4)             Allowance for doubtful accounts 66675 d Estimated doubtful accounts 40700 Less Beginnning uncollectible balance -4900 Bad debt expense 35800 Adjusting entry Bad debt expense 35800             Allowance for uncollectible accounts 35800

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