Providing for Doubtful Accounts At the end of the current year, the accounts receivable account has a debit balance of $2,950,000 and sales for the year total $27,400,000. a. The allowance account before adjustment has a debit balance of $9,500. Bad debt expense is estimated at 3/4 of 1% of sales. b. The allowance account before adjustment has a debit balance of $9,500. An aging of the accounts in the customer ledger indicates estimated doubtful accounts of $188,000. c. The allowance account before adjustment has a credit balance of $31,400. Bad debt expense is estimated at 1/2 of 1% of sales. d. The allowance account before adjustment has a credit balance of $31,400. An aging of the accounts in the customer ledger indicates estimated doubtful accounts of $175,000. Determine the amount of the adjusting entry to provide for doubtful accounts under each of the assumptions (a through d) listed above. 215,000 x a. b. $197,500 V C. 105,600 X d. 143,600 V

Providing for Doubtful Accounts At the end of the current year, the accounts receivable account has a debit balance of $2,950,000 and sales for the year total $27,400,000. a. The allowance account before adjustment has a debit balance of $9,500. Bad debt expense is estimated at 3/4 of 1% of sales. b. The allowance account before adjustment has a debit balance of $9,500. An aging of the accounts in the customer ledger indicates estimated doubtful accounts of $188,000. c. The allowance account before adjustment has a credit balance of $31,400. Bad debt expense is estimated at 1/2 of 1% of sales. d. The allowance account before adjustment has a credit balance of $31,400. An aging of the accounts in the customer ledger indicates estimated doubtful accounts of $175,000. Determine the amount of the adjusting entry to provide for doubtful accounts under each of the assumptions (a through d) listed above. 215,000 x a. b. $197,500 V C. 105,600 X d. 143,600 V

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter9: Accounting For Receivables

Section: Chapter Questions

Problem 6PB: Ink Records recorded $2,333,898 in credit sales for the year and $1,466,990 in accounts receivable....

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