is S800. The journal entry to record the adjustment to the allowance account inc

Question

is S800. The journal entry to record the adjustment to the allowance account includes a debit to Bad Debts Expense for A) $4,600 B) $5,400 C) $6,200 D) $6,800 E) None of the above A company used the percent of sales method to determine its bad debts expensc. At the and of the current year, the company's unadjusted trial balance reported the following selected amouts Accounts receivable Allowance for uncollectible accounts Net Sales $355,000 debit 500 debit 800,000 credit All sales are made on credit. Based on past experience, the company estimates 0.6% of credit sales to be uncollectible. What adjusting entry should the company make at t year to record its estimated bad debts expense? Bad Debt Expense. Allowance for Doubtful Accounts. 1,275 B) Allowance for Doubtful Accounts 1,775 C) Bad Debt Expense... Allowance for Doubtful Accounts. 4,500 D) Bad Debt Expense.... 4,800 4,800 E) Bad Debt Expense... .5,500 5,500 28. Once the estimated depreciation expense for an asset is calculated A) It cannot be changed due to the historical cost principle B) C) It may be revised based on new information. Any changes are accumulated and recognized when the asset is sold. D) The estimate itself cannot be changed; however, new information should be disclosed in E) It cannot be changed due to the consistency principle financial statement footnotes 29·Lomax Enterprises purchased a depreciable asset for S22,000 on March 1, 2008, The asset will be depreciated on the straight-line method over its four-year useful life. Assuming the asset's salvage value is $2,000, what will be the amount of accumulated depreciation on this asset on December 31, 2011? A) $5,000.00 B) $4,166.67 C) $16,666.68 D) $20,000.00 E) $19,166.67

Explanation / Answer

27 Bad debts expense 4800 =800000*0.6%        Allowance for Doubtful accounts 4800 28 It may be revised based on new information 29 Depreciation for 2008 = (22000-2000)/4/12*10= 4166.67 Depreciation for 2009-2011 = (22000-2000)/4*3= 15000 Accumulated depreciation = 4166.67+15000 = 19166.67

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