Catawba Inc reports the following financial information on its Trial Balance before adjustments on December 31,...
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Catawba Inc reports the following financial information on its Trial Balance before adjustments on December 31, 2024. Accounts Receivable Allowance for Doubtful Accounts Sales Revenue (all on credit) Sales Returns and Allowances Debit 40,000 Gross A/R Percentage 37,000 3% 2,000 7% 900 25% 100 75% 10,000 Credit 500 240,000 Instructions 1. Prepare the journal entry to record Bad Debt Expense assuming Catawba Inc. estimates bad debts at (a) 4% of accounts receivable and (b) 4% of accounts receivable but Allowance for Doubtful Accounts had a 100 debit beginning balance instead of the credit beginning balance shown above.. 2. Prepare the journal entry to record Bad Debt Expense assuming Catawba Inc. estimates bad debts using an aging analysis. Use the following aging schedule. 3. Calculate the adjusted balance of the net accounts receivable that will be reported on the balance sheet as of December 31, 2024 assuming that the aging method is used. Catawba Inc reports the following financial information on its Trial Balance before adjustments on December 31, 2024. Accounts Receivable Allowance for Doubtful Accounts Sales Revenue (all on credit) Sales Returns and Allowances Debit 40,000 Gross A/R Percentage 37,000 3% 2,000 7% 900 25% 100 75% 10,000 Credit 500 240,000 Instructions 1. Prepare the journal entry to record Bad Debt Expense assuming Catawba Inc. estimates bad debts at (a) 4% of accounts receivable and (b) 4% of accounts receivable but Allowance for Doubtful Accounts had a 100 debit beginning balance instead of the credit beginning balance shown above.. 2. Prepare the journal entry to record Bad Debt Expense assuming Catawba Inc. estimates bad debts using an aging analysis. Use the following aging schedule. 3. Calculate the adjusted balance of the net accounts receivable that will be reported on the balance sheet as of December 31, 2024 assuming that the aging method is used.
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To prepare the journal entry to record Bad Debt Expense under two scenarios a Assuming Catawba Inc e... View the full answer
Related Book For
Intermediate Accounting
ISBN: 978-0176509736
10th Canadian Edition, Volume 1
Authors: Donald Kieso, Jerry Weygandt, Terry Warfield, Nicola Young,
Posted Date:
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