Question

a were SIA 502... Points) At December 31, Granger Company's unadjusted trial balance shows the following Jy estimated Accounts receivable. *********** ... $295.000 Allowance for doubtful accounts (debit balance) ...... ... 5,000 Credit sales. ...... 1,700,000 In writing these journal entries, write the account titles. Do not use account numbers). Calculate bad debt expense assuming uncollectibles are estimated to be 1.5% of credit sales and write the proper journal entry Bad debt expense Show your work here Debit Credit Calculate bad debt expense assuming uncollectibles are estimated to be 6% of year- end accounts receivable and write the proper journal entry. Bad debt expense Show your work here Debit Credit 18. (6 Points) Marion, Inc. owns equipment that cost $67,800, with accumulated depreciation up to sale of $42,800. Marion sold the equipment for $36,000 cash. Write the proper journal entry to of the equipment. Note: In writing this journal entry, write the account titles. Do not use account Debit Credit

Answer 1

17	Scenario 1			17	Scenario 2
a	Accounts Receivable	295000		a	Accounts Receivable	295000
b	Allowance for doubtful debts (debit balance)	5000		b	Allowance for doubtful debts (debit balance)	5000
c	Credit Sales	1700000		c	Credit Sales	1700000
d	% Bad debts (on credit sales)	1.50%		d	% Bad debts (on Accounts receivable )	6.00%
e	Bad debts Provision on the end of the year (d*c)	25500		e	Bad debts Provision on the end of the year (e*d)	17700
f	Total bad debts expense is sum of debit balance and the current year expense, Since the debit balance in allowance for doubtful debts implies that there was excess bad debts over provision	30500		f	Total bad debts expense is sum of debit balance and the current year expense, Since the debit balance in allowance for doubtful debts implies that there was excess bad debts over provision	22700
	Journal Entry
	Bad debts Expense A/c Debit	30500			Bad debts Expense A/c Debit	22700
	To Allowance for doubtful debts A/C credit		30500		To Allowance for doubtful debts A/C credit		22700
18	Cash A/c Debit	36000
	Accumulated depreciation A/c Debit	42800
	To Equipment A/c Credit		67800
	TO Profit on sale of equipment		11000