The Tucker Corporation. has estimated its bad debts at 0.5 per cent of net credit sales....
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The Tucker Corporation. has estimated its bad debts at 0.5 per cent of net credit sales. During 2021, Acme decided to calculate the required balance for the allowance for doubtful accounts at year-end, December 31, by aging its accounts receivable and determined that 5% of accounts receivable is estimated not to be collected. The following data, which already have been recorded in the company's general ledger, are also available: Accounts written off On March 14, 2017 (Acme) On March 30, 2018 (Jones) Recoveries of accounts written off On June 5, 2021 (Jones) Required: Prepare journal entries to record: 1. The amount of bad debt expense for the year 2020 2020 2. The bad debt expense on December 31, 2021 $1,500 i. 1(a) Show the calculation for bad debt expense ii. 1(b) Journal entry The Allowance for Doubtful Accounts general ledger account reported the January 1, 2020 to be $5,000 credit. Net credit sales for 2020 was $400,000. 2021 year-end balance for accounts receivable is $160,000 3. The collection from Jones on June 5, 2021. i. 2(a) Show the calculation for bad debt expense ii. 2(b) Journal entry 2021 $600 200 The Tucker Corporation. has estimated its bad debts at 0.5 per cent of net credit sales. During 2021, Acme decided to calculate the required balance for the allowance for doubtful accounts at year-end, December 31, by aging its accounts receivable and determined that 5% of accounts receivable is estimated not to be collected. The following data, which already have been recorded in the company's general ledger, are also available: Accounts written off On March 14, 2017 (Acme) On March 30, 2018 (Jones) Recoveries of accounts written off On June 5, 2021 (Jones) Required: Prepare journal entries to record: 1. The amount of bad debt expense for the year 2020 2020 2. The bad debt expense on December 31, 2021 $1,500 i. 1(a) Show the calculation for bad debt expense ii. 1(b) Journal entry The Allowance for Doubtful Accounts general ledger account reported the January 1, 2020 to be $5,000 credit. Net credit sales for 2020 was $400,000. 2021 year-end balance for accounts receivable is $160,000 3. The collection from Jones on June 5, 2021. i. 2(a) Show the calculation for bad debt expense ii. 2(b) Journal entry 2021 $600 200
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Related Book For
Intermediate Accounting
ISBN: 978-0077400163
6th edition
Authors: J. David Spiceland, James Sepe, Mark Nelson
Posted Date:
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