Nguyen & Evans Incorporated, is a software development company that recently reported the following amounts (in...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
Nguyen & Evans Incorporated, is a software development company that recently reported the following amounts (in thousands) in its unadjusted trial balance as of February 28, 2019. Debits $ 989,250 Credits $5,400 5,100,000 Accounts Receivable Allowance for Doubtful Accounts Sales and Service Revenue Required: 1. Assume Nguyen & Evans uses %4 of 1 percent of revenue to estimate its bad debt expense for the year. Prepare the adjusting journal entry required at February 28 for recording Bad Debt Expense. 2. Assume instead that Nguyen & Evans uses the aging of accounts receivable method and estimates that $6,800 (thousand) of Accounts Receivable will be uncollectible. Prepare the adjusting journal entry required at February 28 for recording bad debt expense. TIP: The aging of accounts receivable method focuses on calculating what the adjusted Allowance for Doubtful Accounts balance should be. You need to consider the existing balance when determining the adjustment 3. Assume that the unadjusted balance in Nguyen & Evans's Allowance for Doubtful Accounts at February 28 was a debit balance of $1,360 (thousand). Nguyen & Evans uses the aging of accounts receivable method and estimates that $6,800 (thousand) of Accounts Receivable will be uncollectible. Prepare the adjusting journal entry required at February 28 for recording bad debt expense. 4. If one of Nguyen & Evans's customers declared bankruptcy, what journal entry would be used to write off its $680 (thousand) balance? Nguyen & Evans Incorporated, is a software development company that recently reported the following amounts (in thousands) in its unadjusted trial balance as of February 28, 2019. Debits $ 989,250 Credits $5,400 5,100,000 Accounts Receivable Allowance for Doubtful Accounts Sales and Service Revenue Required: 1. Assume Nguyen & Evans uses %4 of 1 percent of revenue to estimate its bad debt expense for the year. Prepare the adjusting journal entry required at February 28 for recording Bad Debt Expense. 2. Assume instead that Nguyen & Evans uses the aging of accounts receivable method and estimates that $6,800 (thousand) of Accounts Receivable will be uncollectible. Prepare the adjusting journal entry required at February 28 for recording bad debt expense. TIP: The aging of accounts receivable method focuses on calculating what the adjusted Allowance for Doubtful Accounts balance should be. You need to consider the existing balance when determining the adjustment 3. Assume that the unadjusted balance in Nguyen & Evans's Allowance for Doubtful Accounts at February 28 was a debit balance of $1,360 (thousand). Nguyen & Evans uses the aging of accounts receivable method and estimates that $6,800 (thousand) of Accounts Receivable will be uncollectible. Prepare the adjusting journal entry required at February 28 for recording bad debt expense. 4. If one of Nguyen & Evans's customers declared bankruptcy, what journal entry would be used to write off its $680 (thousand) balance?
Expert Answer:
Answer rating: 100% (QA)
Date Particulars Journal Entries 1 Bad debts expense Dr 5100000 1 14 To All... View the full answer
Related Book For
Fundamentals of Financial Accounting
ISBN: 978-1259864230
6th edition
Authors: Fred Phillips, Robert Libby, Patricia Libby
Posted Date:
Students also viewed these accounting questions
-
Red Hat, Inc., is a software development company that recently reported the following amounts (in thousands) in its unadjusted trial balance as of February 29, 2016. Required: 1. Assume Red Hat uses ...
-
The A.T. Cross Company is well known for its Cross pens. The company recently reported the following amounts in its unadjusted trial balance as of December 31, 2010. Debits Credits Accounts...
-
The A. T. Cross Company is well known for its Cross pens. The company recently reported the following amounts in its unadjusted trial balance as of December 31. Required: 1. Assume Cross uses of 1...
-
This histogram shows the times, in minutes, required for 25 rats in an animal behavior experiment to successfully navigate a maze. Which of the following best describes the shape of the histogram? A....
-
When are Private Purpose Trust Funds used?
-
The following are Sullivan Corp.s comparative balance sheet accounts at December 31, 2025 and 2024, with a column showing the increase (decrease) from 2024 to 2025. Additional information: 1. On...
-
Traders in major financial institutions use the Black-Scholes formula in a backward fashion to infer other traders' estimates of \(\sigma\) from option prices. In fact, traders frequently quote...
-
Dunlop Company makes a product that it sells for $200. Dunlop incurs annual fixed costs of $250,000 and variable costs of $160 per unit. Required The following requirements are interdependent. For...
-
Hampton Company reports the following information for its recent calendar year. Income Statement Data Sales Expenses: Cost of goods sold Salaries expense Depreciation expense Net income Required:...
-
Dippin Donuts has six bakers and a bakery supervisor on each of its two shifts. Bakers working from 8am 5pm (with a 1-hour break) are paid $6.00 per hour. Bakers working the 10pm-7am shift (with a...
-
Use the data given below to answer the following problem. This data is also on the excel data file. Following is an extract from a firm's database detailing the number of hours spent on the job by...
-
Which actions can teams take to foster trust when communicating virtually?
-
How is empathic listening different from sympathetic listening?
-
Why is it valuable to understand the gender roles and tolerance for conflict of a culture in which you are doing business?
-
Besides informational, critical, and empathic listening, in what other forms of listening do we engage?
-
What is the difference between a monochronic and a polychronic culture?
-
Discuss some of the well known synchronization problems as examples of a large class of concurrency control problem?
-
Integration is a vital concept when applied in one?s life. Integrating your life means making ideal choices. Perfect choices on the other go in line with quality decisions. Quality decisions lead to...
-
Iconix Brand Group owns and markets various brands and trademarks, including Joe Boxer, London Fog, Ocean Pacific, Ecko Unltd., Umbro, Ed Hardy, Lee Cooper, Buffalo, and Peanuts. The companys...
-
For each of the following independent situations, prepare journal entries to record the initial transaction on December 31 and the adjustment required on January 31. a. Magnificent Magazines received...
-
Greener Pastures Corporation borrowed $1,000,000 on November 1, 2018. The note carried a 9 percent interest rate with the principal and interest payable on June 1, 2019. Show the accounting equation...
-
Which one of the following cannot be a true statement about an object: (a) It has zero velocity and a nonzero acceleration; (b) it has velocity in the x-direction and acceleration in the y-direction;...
-
The equation x = xo +vxot + axt 12 2 applies (a) to all kinematic problems, (b) only if you is zero, (c) to constant accelerations, (d) to negative times.
-
For an object in curvilinear motion, (a) the objects velocity components are constant, (b) the y-velocity component is necessarily greater than the x-velocity component, (c) there is an acceleration...
Study smarter with the SolutionInn App