A company ages its accounts receivables to determine its end of period adjustment for bad debts....
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
A company ages its accounts receivables to determine its end of period adjustment for bad debts. At the end of the current year, management estimated that $33,000 of the accounts receivable balance would be uncollectible. Prior to any year-end adjustments, the Allowance for Doubtful Accounts had a debit balance of $950. What adjusting entry should the company make at the end of the current year to record its estimated bad debts expense? Accounts Receivable Allowance for Doubtful Accounts Bad Debts Expense Allowance for Doubtful Accounts Bad Debts Expense Allowance for Doubtful Accounts Accounts Receivable Bad Debts Expense Sales Bad Debts Expense Allowance for Doubtful Accounts 33,950 33,950 32,050 33,000 950 33,000 33,950 33,950 32,050 33,950 33,000 A company ages its accounts receivables to determine its end of period adjustment for bad debts. At the end of the current year, management estimated that $33,000 of the accounts receivable balance would be uncollectible. Prior to any year-end adjustments, the Allowance for Doubtful Accounts had a debit balance of $950. What adjusting entry should the company make at the end of the current year to record its estimated bad debts expense? Accounts Receivable Allowance for Doubtful Accounts Bad Debts Expense Allowance for Doubtful Accounts Bad Debts Expense Allowance for Doubtful Accounts Accounts Receivable Bad Debts Expense Sales Bad Debts Expense Allowance for Doubtful Accounts 33,950 33,950 32,050 33,000 950 33,000 33,950 33,950 32,050 33,950 33,000
Expert Answer:
Answer rating: 100% (QA)
The correct option is b debit bad debt Expense 45935 and credit ... View the full answer
Related Book For
Financial Reporting and Analysis
ISBN: 978-0078025679
6th edition
Authors: Flawrence Revsine, Daniel Collins, Bruce, Mittelstaedt, Leon
Posted Date:
Students also viewed these accounting questions
-
Allowance Method for Accounting for Bad Debts At the beginning of 2010, Miyazaki Companys accounts receivable balance was $105,000, and the balance in Allowance for Doubtful Accounts was $1,950....
-
At the end of the current year, the following information is available for both the Pulaski Company and the Scott Company. Required 1. Compute the debt-to-equity ratio for both companies. 2. Comment...
-
At the end of the current year, the following information is available for both Caesar Company and Delta Company. Required 1. Compute the debt-to-equity ratio for both companies. 2. Comment on your...
-
A cellphone postpaid plan costs 250 per month with unlimited calls to all networks, 150 text messages per month, and no data plan. After 150 text messages, it costs 0.75 for each text message you...
-
Management fraud (e. g., fraudulent financial reporting) is a relatively rare event. However, when it does occur, the frauds (e. g., Enron and WorldCom) can have a significant effect on shareholders,...
-
Read the full Continental Airlines case (summarized in the End-of-Chapter Application Case) at teradatauniversitynetwork.com and answer the questions. Continental Airlines case As business...
-
Find the response of a simple pendulum numerically by solving the linearized equation: \[\ddot{\theta}+\frac{g}{l} \theta=0\] with \(\frac{g}{l}=0.01\) and plot the response, \(\theta(t)\), for \(0...
-
The partnership of Cox and Cohen paid the following ages during this year: M. Cox (partner) . . . . . . . . . . . . . . . . . $45,000 S. Cohen (partner) . . . . . . . . . . . . . . . . 26,000 N. Tate...
-
Select the InTASC standard(s) you believe is an area of growth for you. Provide an explanation as to why this is an area of growth and develop an action plan to grow in this area. Include in this...
-
It is now January 2018. The year 2017 finished well. The finalized year-end financial statements for 2017 are provided in the excel file associated with this assignment. Randolf and Tenisa at Comfy...
-
Assume you are in the management team of a company, and recommend THREE (3) action plans. What should you do if you are leader to sustain the momentum of change?
-
A program contains two types of instructions. 62% of the instructions are type-A instructions, and the rest are type-B instructions. Type-A instructions have an execution time of 4 microseconds each,...
-
The company issues bonds with a face value of $ 8 0 , 0 0 0 and a stated interest rate of 5 % , paid quarerly, at 7 5 . The current market rate of interest is 6 % . The company uses the effective...
-
1. Below are four independent and unrelated errors found in 2024. Prepare the journal entries each company should record in 2024 to correct the errors (assume the 2023 books were closed, but the 2024...
-
Juett Company produces a single product. The cost of producing and selling a single unit of this product at the company's normal activity level of 70,000 units per month is as follows: Direct...
-
Convert the following algebraic expressions to C++ expressions y = 12a y = 5a 14b + 6c y = a4 y = 4 + 12 4b y = as b + c4
-
In 2013, the top five underwriters engaged in about _____________ of total U.S. underwriting volume. 15 percent 56 percent 44 percent 33 percent 22 percent
-
Marc Company assembles products from a group of interconnecting parts. The company produces some of the parts and buys some from outside vendors. The vendor for Part X has just increased its price by...
-
Packard, Inc., adopted the dollar-value LIFO inventory method on June 30, 2013, the end of its fiscal year. Packards inventory records provide the following information: Required: Calculate the...
-
Weaver, Inc., received a $60,000, six-month, 12% interest-bearing note from a customer. The note was discounted (sold) the same day to Third National Bank at 15%. Required: Compute the amount of cash...
-
In Year 1, Phillips Company reported $10,000 of pre-tax book income and also had $10,000 of taxable income. It incurred a $1,000 book expense that it deducted on its tax return. Assuming a 35% tax...
-
Identify a company that integrates goods and services similar to the LensCrafters example. Use the framework in Exhibit 5.1 to write a short case study about the company in a similar fashion as the...
-
Airbags are designed to protect passengers from frontal or near-frontal crashes. Their designs and performance have improved dramatically since their introduction in the 1980s. Exhibit 5.19 shows a...
-
Glen County manages a waste-to-energy facility that burns 2,000 tons of trash per day and generates over \($20\) million in electricity annually while costing state and local taxpayers \($24\)...
Study smarter with the SolutionInn App