Question: At December 31, 2014, State Line Window Sales has an Accounts Receivable balance of $96,000. Allowance for Doubtful Accounts has a credit balance of $1,340

At December 31, 2014, State Line Window Sales has an Accounts Receivable balance of $96,000. Allowance for Doubtful Accounts has a credit balance of $1,340 before the year-end adjustment. Credit Sales Revenue for 2014 was $608,000. State Line Window Sales estimates that doubtful-account expense for the year is 1% of credit sales. Make the year-end entry to record Doubtful-Account Expense. Show how Accounts Receivable and Allowance for Doubtful Accounts are reported on the balance sheet at December 31, 2014.

Step by Step Solution

★★★★★

3.48 Rating (174 Votes )

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock

Journal DATE ACCOUNT TITLES AND EXPLANATION DEBIT CREDIT ... View full answer

Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock

Step: 3 Unlock

Document Format (1 attachment)

316-B-A-I (4093).docx

120 KBs Word File

Students Have Also Explored These Related Accounting Questions!

At December 31, 2014, Goldstone Travel has an Accounts Receivable balance of $82,000. Allowance for Doubtful Accounts has a credit balance of $730 before the year-end adjustment. Credit Service...

At December 31,2016, Fako Travel Agency has an Accounts Receivable balance of $96,000. Allowance for Doubtful Accounts has a credit balance of $830 before the year-end adjustment. Service revenue...

At December 31, 2010, Darcis Travel has an accounts receivable balance of $88,000. Allowance for Doubtful Accounts has a credit balance of $900 before the year-end adjustment. Service revenue for...

22) What is an advantage of CMO securities: a) They eliminate prepayment risk. b) they can help meet the asset/liability requirements of institutional investors c) they are created directly from a...

Exercise 2 ( LO 2 ) Subsidiary sale of shares to noncontrolling interest. Truck Company owns a 90% interest in Trailer Company on January 1, 2015, when Trail has the following stockholders equity:...

On January 1, 2017, Sheffield SA had Accounts Receivable 94,720 and Allowance for Doubtful Accounts 7,300. Sheffield prepares financial statements annually at December 31. During the year, the...

P6 -5 Determining Bad Debt Expense Based on Aging Analysis Valhalla Equipment Company uses the aging approach h to estimate bad debt expense at the end of each accounting year . Credit sales occur...

ACCOUNTS RECEIVABLE-UNCOLLECTIBLE ACCOUNTS Instructions Present the journal entries specified below; show supporting calculations. Each item should be considered independently. The trial balance of...

Emmett Company, Inc. December 31, 2017 3DA Unadjusted Trial balance Cash 45,000 Accounts Receivable 30,000 ea cant Allowance for Doubtful Accounts 1000 Short Term Note Receivable 80,000 Interest...

Time Ritrinining: 03:60:43 Sud Test s Question: 20 pts 8 of 6 (complete This Test: 110 pts possible 7 December 31, 2018 before any year end adjustments, the Accounts Receivable balance of Ene...

Differentiate between authentication and authorization. Which one of these processes is always performed first?

In Example 11.11, define f(i) to be the proportion of G genes in state i. Show that f is a harmonic function (see Exercise 27). Why does this show that the probability of being absorbed in state...

1 3 - 2 0 An entity maintains perpetual inventory records in both quantities and dollars. If the level of control risk were set at high, an auditor would probably Insist that the entity perform...

Q1. What is convergence? How is convergence affecting Sony? Kodak? Nokia? Q2.The digital revolution may lead to the creation of cashless societies where payments are conducted digitally using...

7. Aluminium reacts with iodine according to the following equation: 2Al(s) + 312(s) Al2 l6(s) a. How many moles of Al2 16 are produced by the reaction of 4.0 mole of aluminium? b. How many moles of...

Question 8 The Neoclassical growth model is based on the existence of an aggregate production function-showing the relationship between labor ( L ), capital ( K ), technology ( T ), and real GDP ( Y...

8. Methanol (CH4O), which is used as a fuel in high -performance racing cars, burns in the presence of O2 to form CO2 and H2 2CH4O(1) + 302(g) 2CO2(g) + 4H,0(g) a. What is the theoretical yield of...

TABLE 1: Manning n for various channel types Channel description n Clean, straight, no rapids or pools 0.035 Clean, winding, some pools and shoals 0.042 Sluggish reaches, weedy, deep pools 0.084 Very...

How is an executive team different from the teams described in Chapter 11?

The accounting records of Jim's Appliances included the following balances at the end of the period: In the past, Jim's warranty expense has been 9% of sales. During the current period, the business...

Perrault has an annual payroll of $190,000. In addition, the company incurs payroll tax expense of 8%. At December 31, Perrault owes salaries of $8,200 and FICA and other payroll tax of $700. The...

Assume that Cart Sales Company completed the following note payable transactions: 2016 Jul 1 Purchased delivery truck costing $57,000 by issuing a one-year, 6% note payable. Dec 31 Accrued interest...

Refer to the stock options on Apple in the Figure 2.10. Suppose you buy an May expiration call option on 100 shares with the excise price of $145. 2-1. If the stock price in May is $153, will you...

2nd time posting this question. I'm having a hard time trying to get the commands to communicate with the classes and the floor. We have to have separate classes. I think i'm on the right path. I...

Frostbite Thermalwear has a zero coupon bond issue outstanding with a face value of $30,000 that matures in one year. The current market value of the firms assets is $36,400. The standard deviation...