The Kraft Heinz Company was formed in 2015 with the merger of Kraft Foods and H....

 

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The Kraft Heinz Company was formed in 2015 with the merger of Kraft Foods and H. J. Heinz Corporation. The company reported the following rounded amounts for the year ended December 29, 2018 (all amounts in millions): The Kraft Heinz Company Debits Credits Accounts Receivable $2.130 Allowance for Doubtful Accounts 24 Sales (assume all on credit) 26,300 Required: Page 383 1. Assume Kraft Heinz uses ½ of 1 percent of sales to estimate its Bad Debt Expense for the year. Prepare the adjusting journal entry required for the year (rounded to the nearest million), assuming no Bad Debt Expense has been recorded yet. 2. Assume instead Kraft Heinz uses the aging of accounts receivable method and estimates that $80 of its Accounts Receivable will be uncollectible. Prepare the adjusting journal entry required at December 29, 2018, for recording Bad Debt Expense. 3. Repeat requirement 2, except this time assume the unadjusted balance in Kraft Heinz's Allowance for Doubtful Accounts at December 29. 2018. was a debit balance of $20. 4. If one of Kraft Heinz's customers declared bankruptcy, what journal entry would be used to write off its $15 balance? The Kraft Heinz Company was formed in 2015 with the merger of Kraft Foods and H. J. Heinz Corporation. The company reported the following rounded amounts for the year ended December 29, 2018 (all amounts in millions): The Kraft Heinz Company Debits Credits Accounts Receivable $2.130 Allowance for Doubtful Accounts 24 Sales (assume all on credit) 26,300 Required: Page 383 1. Assume Kraft Heinz uses ½ of 1 percent of sales to estimate its Bad Debt Expense for the year. Prepare the adjusting journal entry required for the year (rounded to the nearest million), assuming no Bad Debt Expense has been recorded yet. 2. Assume instead Kraft Heinz uses the aging of accounts receivable method and estimates that $80 of its Accounts Receivable will be uncollectible. Prepare the adjusting journal entry required at December 29, 2018, for recording Bad Debt Expense. 3. Repeat requirement 2, except this time assume the unadjusted balance in Kraft Heinz's Allowance for Doubtful Accounts at December 29. 2018. was a debit balance of $20. 4. If one of Kraft Heinz's customers declared bankruptcy, what journal entry would be used to write off its $15 balance?

Answer rating: 100% (QA)

Date General journal Debit Credit Requirement 1 December 292018 Bad d... View the full answer