Fundamentals Of Financial Accounting
6th Edition
ISBN: 9781259864230
Author: PHILLIPS, Fred, Libby, Robert, Patricia A.
Publisher: Mcgraw-hill Education,
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Textbook Question
Chapter 8, Problem 5MC
- 5. If the Allowance for Doubtful Accounts opened with a $10,000 credit balance, had write-offs of $5,000 (with no recoveries) during the period, and had a desired ending balance of $20,000 based on an aging analysis, what was the amount of
Bad Debt Expense?- a. 55,000
- b. $10,000
- c. $15,000
- d. $20,000
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Using the percentage of receivables method for recording
bad debt expense, estimated uncollectible accounts are
$11,000. If the balance of the Allowance for Doubtful
Accounts is $2,800 debit before adjustment, what is the
balance after adjustment?
Select one:
a. $11,000
b. $8,200
c. $13,800
d. $2,800
e. The answer does not exist
Using the percentage of receivables method for recording bad debt expense, estimated
uncollectible accounts are $11,000. If the balance of the Allowance for Doubtful Accounts is
$2,800 debit before adjustment, what is the balance after adjustment?
Select one:
a. $13,800
b. $8,200
C. $11,000
d. $2,800
By the percentage-of-receivables method for recording bad debt expense, estimated uncollectible
accounts are $12,000. If the balance of the Allowance for Doubtful Accounts is $2,500 credit
before adjustment, what is the amount of bad debt expense for that period?
Select one:
a. $9,500
b. The answer does not exist
C. $14,500
d. $2,500
e. $12,000
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Chapter 8 Solutions
Fundamentals Of Financial Accounting
Ch. 8 - What are the advantages and disadvantages of...Ch. 8 - Prob. 2QCh. 8 - Which basic accounting principles does the...Ch. 8 - Using the allowance method, is Bad Debt Expense...Ch. 8 - What is the effect of the write-off of...Ch. 8 - How does the use of calculated estimates differ...Ch. 8 - A local phone company had a customer who rang up...Ch. 8 - What is the primary difference between accounts...Ch. 8 - What are the three components of the interest...Ch. 8 - As of May 1, 2016, Krispy Kreme Doughnuts had...
Ch. 8 - Does an increase in the receivables turnover ratio...Ch. 8 - What two approaches can managers take to speed up...Ch. 8 - When customers experience economic difficulties,...Ch. 8 - (Supplement 8A) Describe how (and when) the direct...Ch. 8 - (Supplement 8A) Refer to question 7. What amounts...Ch. 8 - 1. When a company using the allowance method...Ch. 8 - 2. When using the allowance method, as Bad Debt...Ch. 8 - 3. For many years, Carefree Company has estimated...Ch. 8 - 4. Which of the following best describes the...Ch. 8 - 5. If the Allowance for Doubtful Accounts opened...Ch. 8 - 6. When an account receivable is recovered a....Ch. 8 - Prob. 7MCCh. 8 - 8. If the receivables turnover ratio decreased...Ch. 8 - Prob. 9MCCh. 8 - Prob. 10MCCh. 8 - Prob. 1MECh. 8 - Evaluating the Decision to Extend Credit Last...Ch. 8 - Reporting Accounts Receivable and Recording...Ch. 8 - Recording Recoveries Using the Allowance Method...Ch. 8 - Recording Write-Offs and Bad Debt Expense Using...Ch. 8 - Determining Financial Statement Effects of...Ch. 8 - Estimating Bad Debts Using the Percentage of...Ch. 8 - Estimating Bad Debts Using the Aging Method Assume...Ch. 8 - Recording Bad Debt Estimates Using the Two...Ch. 8 - Prob. 10MECh. 8 - Prob. 11MECh. 8 - Recording Note Receivable Transactions RecRoom...Ch. 8 - Prob. 13MECh. 8 - Determining the Effects of Credit Policy Changes...Ch. 8 - Prob. 15MECh. 8 - (Supplement 8A) Recording Write-Offs and Reporting...Ch. 8 - Recording Bad Debt Expense Estimates and...Ch. 8 - Determining Financial Statement Effects of Bad...Ch. 8 - Prob. 3ECh. 8 - Recording Write-Offs and Recoveries Prior to...Ch. 8 - Prob. 5ECh. 8 - Computing Bad Debt Expense Using Aging of Accounts...Ch. 8 - Computing Bad Debt Expense Using Aging of Accounts...Ch. 8 - Recording and Reporting Allowance for Doubtful...Ch. 8 - Recording and Determining the Effects of Write-Off...Ch. 8 - Recording Note Receivable Transactions, Including...Ch. 8 - Recording Note Receivable Transactions, Including...Ch. 8 - Recording Note Receivable Transactions, Including...Ch. 8 - Using Financial Statement Disclosures to Infer...Ch. 8 - Using Financial Statement Disclosures to Infer Bad...Ch. 8 - Prob. 15ECh. 8 - Analyzing and Interpreting Receivables Turnover...Ch. 8 - (Supplement 8A) Recording Write-Offs and Reporting...Ch. 8 - Recording Accounts Receivable Transactions Using...Ch. 8 - Interpreting Disclosure of Allowance for Doubtful...Ch. 8 - Recording Notes Receivable Transactions Jung ...Ch. 8 - Accounting for Accounts and Notes Receivable...Ch. 8 - Analyzing Allowance for Doubtful Accounts,...Ch. 8 - Recording Accounts Receivable Transactions Using...Ch. 8 - Interpreting Disclosure of Allowance for Doubtful...Ch. 8 - Recording Notes Receivable Transactions CS...Ch. 8 - Accounting for Accounts and Notes Receivable...Ch. 8 - Analyzing Allowance for Doubtful Accounts,...Ch. 8 - Recording Accounts Receivable Transactions Using...Ch. 8 - Prob. 2PBCh. 8 - Prob. 3PBCh. 8 - Accounting for Accounts and Notes Receivable...Ch. 8 - Analyzing Allowance for Doubtful Accounts,...Ch. 8 - Recording and Reporting Credit Sales and Bad Debts...Ch. 8 - Prob. 2COPCh. 8 - Recording Daily and Adjusting Entries Using FIFO...Ch. 8 - Prob. 1SDCCh. 8 - Prob. 2SDCCh. 8 - Ethical Decision Making: A Real-Life Example You...Ch. 8 - Critical Thinking: Analyzing the Impact of Credit...Ch. 8 - Using an Aging Schedule to Estimate Bad Debts and...Ch. 8 - Accounting for Receivables and Uncollectible...
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- Using the percentage of receivables method for recording bad debts expense, estimated uncollectible accounts are RM250,000. If the balance of the Allowance for Doubtful Accounts is RM60,000 debit before adjustment, what is the amount of bad debts expense for that period? O A. RM250,000 B. RM60,000 O C. RM310,000 D. RM190,000arrow_forwardThe amount of the adjustment to allowance for uncollectible accounts, representing the cost of estimated future bad debts charged to the current period is known as which of the following: O Amortization Expense O Bad Debt Expense O Sales return O Cost of goods ASUS f3 f4 f5 E3 f6 f7 f9 f10 f11 4. E R Y U 0O D G H JK 08 6 5 图 %24arrow_forwardUsing the percentage-of-receivables method for recording bad debt expense,estimated uncollectible accounts are $45,000. If the balance of the Allowancefor Doubtful Accounts is $6,000 balance before adjustment, what is the amountof bad debt expense for that period?a. $45,000b. $39,000c. $51,000d. $6,000arrow_forward
- Conner Pride reports year-end credit sales in the amount of $567,000 and accounts receivable of $134,000. Conner uses the balance sheet method to report bad debt estimation. The estimation percentage is 4.6%. What is the estimated balance uncollectible using the balance sheet method? A. $26,082 B. $6,164 C. $260,820 D. $61,640arrow_forwardUse the Dynamic Exhibit to answer the following questions. 1. When the percent of uncollectible accounts is .75%, the entry for bad debt expense is a debit to bad debt expense for $fill in the blank 2 2. When the percent of uncollectible accounts is 1%, the entry for bad debt expense is a debit to bad debt expense for $fill in the blank 4 3. When the unadjusted balance of Allowance for Doubtful Accounts is a debit of $2,100, and the percent of uncollectible accounts is .75%, the adjusted balance at December 31 after the entry for uncollectible accounts is made is $fill in the blank 5 4. When the unadjusted balance of Allowance for Doubtful Accounts is a credit of $3,250, and the percent of uncollectible accounts is .75%, the adjusted balance at December 31 after the entry for uncollectible accounts is made is $fill in the blank 6arrow_forwardAn aging of a company's accounts receivable indicates that $13,000 are estimated to be uncollectible. If Allowance for Doubtful Accounts has a $1,200 credit balance, the adjustment to record bad debts for the period will require a Select one: a. credit to Allowance for Doubtful Accounts for $13,000. b. debit to Bad Debt Expense for $12,800 C. debit to Bad Debt Expense for $13,000. d. The answer does not exist e. debit to Allowance for Doubtful Accounts for $11,800. Previous page Next page Jump to...arrow_forward
- 1 Calculate, record, post, and analyze the adjustment to recognize bad debt expense under the following information provided: Account DR CR Accounts receivable Allowance for doubtful accounts 365,000 15,000 Net credit sales 827,000 Amount % Estimated Total Estimated Number of Days Outstanding Receivable Uncollectible Uncollectible 0-30 175,000 1.00% 31-60 80,000 2.00% 61-90 50,000 42,000 18,000 5.00% Page 1 91-120 20.00% Over 120 40.00% TOTALS 365,000 Page 2 General Ledger Accounts Receivable A Allowance for Doubtful XA Bad Debt Expense E Debit Credit Debit Credit Debit Credit Transaction Analysis ASSETS LIABILITIES EQUITY REVENUES EXPENSES NET INCOME + General Journal DR CR 2 What is the net realizable value of Accounts receivable?arrow_forwardUnder the direct write-off method of accounting for uncollectible accounts O A. the allowance account is increased for the actual amount of bad debt at the time of write-off. O B. balance sheet relationships are emphasized. O C. bad debts expense is always recorded in the period in which the revenue was recorded. O D. a specific account receivable is decreased for the actual amount of bad debt at the time of write-off.arrow_forwarda. The Stealem Co. uses the percentage of receivable method to estimate bad debts and maintains an allowance account to reduce accounts receivable to their net realizable value. An aging of accounts receivable produced the following analysis:Probable % of non-collectionNot yet due………………………………………………… $ 175,000 1%1-30 days past due………………………………………… 90,000 4%31-60 days past due……………………………………….. 40,000 10%61-90 days past due……………………………………….. 10,000 30%Over 90 days past due…………………………………….. 15,000 50%Total $330,000 Prior to adjustment the Allowance for Bad Debts account had a $6,300 credit balance. Instructions:1. Compute the estimated amount of receivables that will not be collected based on aging. 2. Prepare the adjusting journal entry need to record bad debt expense and bring theallowance account to the correct balance. 3. If Stealem used the percentage of sales method to estimate bad debts and it is assumedthe 2% of the sales would be uncollectible. Prepare the journal entry if sales…arrow_forward
- 1. What is the correct accounts receivable – trade account balance? 2. What is the carrying value of the accounts receivable –trade? 3. What is the correct bad debt expense for the year assuming that the allowance for bad debts based on aging of trade receivables at the beginning of the year was at P5,400?arrow_forwardIf the Allowance for Doubtful Account has a Debit balance at the end of the period, then more 'actual bad debt' was recognized than 'estimated' O Net Income will be less than zero O estimated bad debt for the next period will not be necessary O AR balance will be zero 763C0arrow_forwardAt the end of the fiscal year, Accounts Receivable has a balance of R100 000 and allowance for doubtful accounts has a balance of R7 000. The expected net realizable value of the accounts receivable is________. Select one: a. R107 000 b. R7 000 c. R93 000 d. R100 000arrow_forward
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