Question

At the end of the current year, the accounts receivable account has a debit balance of $840,000, and net sales for the year total $7,150,000. Determine the amount of the adjusting entry to provide for doubtful accounts under each of the following assumptions:
a. The allowance account before adjustment has a credit balance of $1,780. Uncollectible accounts expense is estimated at 1/4 of 1% of net sales.
b. The allowance account before adjustment has a credit balance of $2,750. An aging of the accounts in the customer's ledger indicates estimated doubtful accounts of $16,350.
c. The allowance account before adjustment has a debit balance of $3,050. Uncollectible accounts expense is estimated at 1/2 of 1% of net sales.
d. The allowance account before adjustment has a debit balance of $3,050. An aging of the accounts in the customer's ledger indicates estimated doubtful accounts of $38,400.



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  • CreatedNovember 06, 2012
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