At the end of the current year, the accounts receivable account has a debit balance of...
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At the end of the current year, the accounts receivable account has a debit balance of $918,000 and sales for the year total $10,400,000. a. The allowance account before adjustment has a debit balance of $12,400. Bad debt expense is estimated at 3/4 of 1% of sales. b. The allowance account before adjustment has a debit balance of $12,400. An aging of the accounts in the customer ledger indicates estimated doubtful accounts of $39,700. C. The allowance account before adjustment has a credit balance of $9,400. Bad debt expense is estimated at 1/4 of 1% of sales. d. The allowance account before adjustment has a credit balance of $9,400. An aging of the accounts in the customer ledger indicates estimated doubtful accounts of $78,000. Determine the amount of the adjusting entry to provide for doubtful accounts under each of the assumptions (a through d) listed above. a. C. J00 At the end of the current year, the accounts receivable account has a debit balance of $918,000 and sales for the year total $10,400,000. a. The allowance account before adjustment has a debit balance of $12,400. Bad debt expense is estimated at 3/4 of 1% of sales. b. The allowance account before adjustment has a debit balance of $12,400. An aging of the accounts in the customer ledger indicates estimated doubtful accounts of $39,700. C. The allowance account before adjustment has a credit balance of $9,400. Bad debt expense is estimated at 1/4 of 1% of sales. d. The allowance account before adjustment has a credit balance of $9,400. An aging of the accounts in the customer ledger indicates estimated doubtful accounts of $78,000. Determine the amount of the adjusting entry to provide for doubtful accounts under each of the assumptions (a through d) listed above. a. C. J00
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Solution a Sales 10400000 of sales 134 075 Amount of Adjusting entry for Doubtful accounts 78000 ... View the full answer
Related Book For
Accounting
ISBN: 9781337902687
28th Edition
Authors: Carl S. Warren, Christine Jonick, Jennifer Schneider
Posted Date:
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