Duncan SA reports the following financial information before adjustments. Dr. Cr. Accounts Receivable 100,000 Allowance for...

 

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Duncan SA reports the following financial information before adjustments. Dr. Cr. Accounts Receivable 100,000 Allowance for Doubtful Accounts 2,000 Sales Revenue 900,000 Instructions Prepare the journal entry to record bad debt expense assuming Duncan estimates bad debts at (a) 5% of accounts receivable and (b) 5% of accounts receivable, and the Allowance for Doubtful Accounts has a 1,500 debit balance. E7.8 (LO 3) (Recording Bad Debts) At the end of 2022, Sorter plc has accounts receivable of 900,000 and an allowance for doubtful accounts of 40,000. On January 16, 2023, Sorter determined that its receivable from Ordonez Orchards of 8,000 will not be collected, and management authorized its write-off. Instructions a. Prepare the journal entry for Sorter ple to write off the Ordonez receivable. b. What is the cash realizable value of Sorter plc's accounts receivable before the write-off of the Ordonez receivable? c. What is the cash realizable value of Sorter plc's accounts receivable after the write-off of the Ordonez receivable? E7.9 (LO 3) (Computing Bad Debts and Preparing Journal Entries) The trial balance before adjustment of Estefan Inc. shows the following balances. Instructions Dr. Cr. Accounts Receivable $80,000 Allowance for Doubtful Accounts 1,750 Sales Revenue $580,000 Give the entry for estimated bad debts assuming that the allowance is to provide for doubtful accounts on the basis of (a) 4% of gross accounts receivable and (b) 5% of gross accounts receivable, and the Allowance for Doubtful accounts has a $1,700 credit balance. Duncan SA reports the following financial information before adjustments. Dr. Cr. Accounts Receivable 100,000 Allowance for Doubtful Accounts 2,000 Sales Revenue 900,000 Instructions Prepare the journal entry to record bad debt expense assuming Duncan estimates bad debts at (a) 5% of accounts receivable and (b) 5% of accounts receivable, and the Allowance for Doubtful Accounts has a 1,500 debit balance. E7.8 (LO 3) (Recording Bad Debts) At the end of 2022, Sorter plc has accounts receivable of 900,000 and an allowance for doubtful accounts of 40,000. On January 16, 2023, Sorter determined that its receivable from Ordonez Orchards of 8,000 will not be collected, and management authorized its write-off. Instructions a. Prepare the journal entry for Sorter ple to write off the Ordonez receivable. b. What is the cash realizable value of Sorter plc's accounts receivable before the write-off of the Ordonez receivable? c. What is the cash realizable value of Sorter plc's accounts receivable after the write-off of the Ordonez receivable? E7.9 (LO 3) (Computing Bad Debts and Preparing Journal Entries) The trial balance before adjustment of Estefan Inc. shows the following balances. Instructions Dr. Cr. Accounts Receivable $80,000 Allowance for Doubtful Accounts 1,750 Sales Revenue $580,000 Give the entry for estimated bad debts assuming that the allowance is to provide for doubtful accounts on the basis of (a) 4% of gross accounts receivable and (b) 5% of gross accounts receivable, and the Allowance for Doubtful accounts has a $1,700 credit balance.