Principles of Accounting (101&102 (ACC ctice Assignment Gradebook ORION Download
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Question
Principles of Accounting (101&102 (ACC ctice Assignment Gradebook ORION Downloadable eTextbook nment Problem 9-2A Information related to Mingenback Company for 2017 is summanized below. Total credit sales Accounts receivable at December 31 Bad debts written off $2,430,000 879,000 4,700 a of bad debt expense will Mingenback Company report if it uses the direct wite-off method of (b) Assume that Mangenback Company estimates its bad debt expense to be 3% of credit sales, what amount of bad debt expense will Mngenback record ifit has an Alowance for Doubtful Accounts credit balance of $4,100? $ Assume that Mingenback Company estimates its bad debt expense based on 6% ofaccounts receivable. what amount of bedder e pe-et woe bea med reer a a e Doubtful Accounts credit balance of $2,900?$ (c) Assume that Mingenback Company estimates its bad debt expense based on 0% of accounts recensee what amount·bad debt epee sa e o aa ese ,e senansess Doubtful Accounts debit balance of $2,900? (d) sans uttt Question Attempts: Oof,used A Sons, Inc, All Rights Reserved. A Division of 2ahn Wiley.&.IExplanation / Answer
Answer to Problem 9-2A
Answer a.
If Mingenback Company use direct write-off method of accounting for bad debt, then bad expense will be $34,700.
Answer b.
Bad Debt Expenses = 3% * Credit Sales
Bad Debt Expenses = 3% * $2,430,000
Bad Debt Expenses = $72,900
Answer c.
Bad Debt Expenses = 6% * Accounts Receivable - Credit balance of Allowance for Doubtful Account
Bad Debt Expenses = 6% * $879,000 - $2,900
Bad Debt Expenses = $49,840
Answer d.
Bad Debt Expenses = 6% * Accounts Receivable + Debit balance of Allowance for Doubtful Account
Bad Debt Expenses = 6% * $879,000 + $2,900
Bad Debt Expenses = $55,640
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