Question: Chipman Sofware recently reported the following amounts in its unadjusted trial balance at its year-end: Credits $ 31 41,000 Accounts Receivable Allowance for Doubtful

Chipman Sofware recently reported the following amounts in its unadjusted trial balance

Chipman Sofware recently reported the following amounts in its unadjusted trial balance at its year-end: Credits $ 31 41,000 Accounts Receivable Allowance for Doubtful Accounts Sales (assume all on credit) Required: Debits $ 2,700 1. Prepare the adjusting journal entry required for the year. Assume Chipman uses 1/4 of 1 percent of sales to estimate its Bad Debt Expense for the year and no Bad Debt Expense has been recorded yet. 2. Prepare the adjusting journal entry required for the year. Assume instead that Chipman uses the aging of accounts receivable method and estimates that $77 of its Accounts Receivable will be uncollectible. 3. Assume instead that Chipman uses the aging of accounts receivable method and estimates that $77 of its Accounts Receivable will be uncollectible. Prepare the year-end adjusting journal entry for recording Bad Debt Expense. Assume Chipman's year-end unadjusted balance in Allowance for Doubtful Accounts was a debit balance of $38. 4. If one of Chipman's main customers declared bankruptcy after year-end, what journal entry would be used to write off its $25 balance?

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SOLUTION aAdjusting journal entry for estimating Bad Debt Expense based on sales Bad Debt Expense 41000 x 025 10250 estimated bad debt expense Allowan... View full answer

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