On December 31, Alvare Company estimates its bad debts to be .5% of its annual credit...

   

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On December 31, Alvare Company estimates its bad debts to be .5% of its annual credit sales of $875,000. They use the allowance method. Prepare the Journal entries for December 31 recording the Bad Debt Expense and Allowance. Cabool Supply uses the percent of accounts receivable method to estimate bad debts. On December 31, there are outstanding accounts receivable of $53,000. The estimate is that 4% of these will be uncollectible. Prepare the entry to record the bad debt expense under the allowance method. There is a $915 credit balance in the account already. Hector Company has the following estimates based on aging of receivables: Accounts Rec. Past Due Percentage $132,000 $ 30,000 $ 12,000 $ 6,000 $ 10,000 Over 90 A) Determine the estimate for the Allowance Acct B) Prepare the entry if there is a $600 credit in the Allowance account already 0 1-30 31-60 61-90 1% 2% 4% 7% 12% On December 31, Alvare Company estimates its bad debts to be .5% of its annual credit sales of $875,000. They use the allowance method. Prepare the Journal entries for December 31 recording the Bad Debt Expense and Allowance. Cabool Supply uses the percent of accounts receivable method to estimate bad debts. On December 31, there are outstanding accounts receivable of $53,000. The estimate is that 4% of these will be uncollectible. Prepare the entry to record the bad debt expense under the allowance method. There is a $915 credit balance in the account already. Hector Company has the following estimates based on aging of receivables: Accounts Rec. Past Due Percentage $132,000 $ 30,000 $ 12,000 $ 6,000 $ 10,000 Over 90 A) Determine the estimate for the Allowance Acct B) Prepare the entry if there is a $600 credit in the Allowance account already 0 1-30 31-60 61-90 1% 2% 4% 7% 12%

Answer rating: 100% (QA)

Here are the journal entries for the given scenarios A Alvare Company Alvare Company estimates bad d... View the full answer