Question

Question 3 An aging of a company's accounts receivable indicates that $8200 are estimated to be uncollectible. 1If Allowance for Doubtful Accounts has a $5470 debit balance, the adjustment to record bad debts for the period will require a O debit to Allowance for Doubtful Accounts for $13670. debit to Bad Debt Expense for $8200. debit to Bad Debt Expense for $13670 credit to Allowance for Doubtful Accounts for $8200

Answer 1

Question 3:

Estimated allowance for doubtful account	$    8,200
Add: Debit balance in unadjusted doubtful account	$    5,470
Bad debt expense	$ 13,670

Debit Bad debt expense	$ 13,670
Credit Allowance for doubtful accounts		$ 13,670

Option; 3. Debit to Bad Debt Expense for $ 13,670

Question:4

Depreciation = Equipment cost - salvage value / life of years

                   = $318,000 - $18,000 / 4 = $75,000

Option 2 : $75,000 is correct

Question:6

Option:2   $290,000

Revenues	629,000
Less : Expenses	334,000
Net Income	295,000
Less : Dividends	65,000
Net Income transferred to Retained Earnings	230,000
Beginning Shareholders Equity :
Total assets	323,000
Less : Total liabilities	263,000
Shareholders’ Equity	60,000
Beginning Shareholders Equity	60000
Add: Net Income transferred	230,000
Ending Shareholders Equity	290,000