As of 12/31 the cash balance in Ellery, Inc.'s books is $75,000. The bank statement, however, showed a balance of $100,000 as of the same date. The only reconciling items were deposits in transit of $15,000, interest earned of $225, a bank service charge of $115 and outstanding checks.


Ellery Inc.'s Adjusted Book Balance is?

The Accounts Receivable balance for Computer Co. is $70,000 as of December 31st. Before calculating and recording Bad Debt Expense for the year, the Allowance for Doubtful Accounts has a credit balance of $80.

Credit sales for the year were $65,000. In the past, 3% of net credit sales have proved uncollectible.

An aging of Computer Co.'s Accounts Receivable results in a $2,000 estimate for the Allowance for Doubtful Accounts. There were no write-offs during the year.


Assume Computer Co. uses the percent of sales method. What is the balance in the Allowance for Doubtful Accounts after Computer Co. records its adjustment entry relating to Bad Debt Expense?

Answer rating: 100% (QA)

To calculate the balance in the Allowance for Doubtful Accounts after recording the adjustment entry ... View the full answer