Question: Answer questions 20 and 21 using the below information. Singh Company had the following year-end unadjusted trial balance accounts : Debit Credit Accounts Receivable $150,000
Answer questions 20 and 21 using the below information.
Singh Company had the following year-end unadjusted trial balance accounts:
Debit Credit
Accounts Receivable $150,000
Allowance for Doubtful Accounts $3,000
Credit Sales $980,000
Sales Returns and Allowances $80,000
20. The adjusting journal entry to record bad debts expense, assuming Singh uses the
percentage of sales approach and estimates uncollectible Accounts Receivable to be 1% of
net credit sales is:
- Bad Debts Expense............................................................... 9,000
Allowance for Doubtful Accounts.............................. 9,000
b. Bad Debts Expense............................................................ 9,800
Allowance for Doubtful Accounts.............................. 9,800
c. Bad Debts Expense.............................................................. 9,000
Accounts Receivable.................................................... 9,000
d. Allowance for Doubtful Accounts..................................... 9,000
Accounts Receivable.................................................... 9,000
e. Accounts Receivable........................................................... 9,800
Allowance for Doubtful Accounts.............................. 9,800
21. The adjusting journal entry to record bad debts expense, assuming Singh agesits Accounts
Receivable and determines that $9,000 is estimated to be uncollectible is:
- Bad Debts Expense................................................................ 9,000
Allowance for Doubtful Accounts............................... 9,000
b. Allowance for Doubtful Accounts....................................... 9,000
Bad Debts Expense....................................................... 9,000
c. Bad Debts Expense................................................................. 6,000
Allowance for Doubtful Accounts............................. 6,000
d. Allowance for Doubtful Accounts........................................ 6,000
Bad Debts Expense....................................................... 6,000
e. Bad Debts Expense................................................................ 6,000
Accounts Receivable..................................................... 6,000
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