The Kraft Heinz Company was formed in 2015 with the merger of Kraft Foods and H....

 

Transcribed Image Text:

The Kraft Heinz Company was formed in 2015 with the merger of Kraft Foods and H. J. Heinz Corporation. The company reported the following rounded amounts for the year ended January 3, 2016 (all amounts in millions): Inle Debits Credits Accounts Receivable Allowance for Doubtful Accounts Sales (assume all on credit) $900 2$ 30 18,300 Required: Assume Kraft Heinz uses % of I percent of sales to estimate its Bad Debt Expense for the year. Prepare the adjusting journal entry required for the year (rounded to the nearest million). assuming no Bad Debt Expense has been recorded yet. 2. Assume instead Kraft Heinz uses the aging of accounts receivable method and estimates that $80 of its Accounts Receivable will be uncollectible. Prepare the adjusting journal entry required at January 3, 2016, for recording Bad Debt Expense. 3. Repeat requirement 2. except this time assume the unadjusted balance in Kraft Heinz's Allowance for Doubtful Accounts at January 3, 2016, was a debit balance of $20. 4. If one of Kraft Heinz's customers declared bankruptey, what journal entry would be used to write off its $15 balance? 1. The Kraft Heinz Company was formed in 2015 with the merger of Kraft Foods and H. J. Heinz Corporation. The company reported the following rounded amounts for the year ended January 3, 2016 (all amounts in millions): Inle Debits Credits Accounts Receivable Allowance for Doubtful Accounts Sales (assume all on credit) $900 2$ 30 18,300 Required: Assume Kraft Heinz uses % of I percent of sales to estimate its Bad Debt Expense for the year. Prepare the adjusting journal entry required for the year (rounded to the nearest million). assuming no Bad Debt Expense has been recorded yet. 2. Assume instead Kraft Heinz uses the aging of accounts receivable method and estimates that $80 of its Accounts Receivable will be uncollectible. Prepare the adjusting journal entry required at January 3, 2016, for recording Bad Debt Expense. 3. Repeat requirement 2. except this time assume the unadjusted balance in Kraft Heinz's Allowance for Doubtful Accounts at January 3, 2016, was a debit balance of $20. 4. If one of Kraft Heinz's customers declared bankruptey, what journal entry would be used to write off its $15 balance? 1.

Answer rating: 100% (QA)

Title Debit credit 1 Bad debt expenses 92 Allowance of ... View the full answer