Question

W2IOnline te..x3 Assignments ACCT 2101 316.7 LAt the end of the curent yeat. . Show Me How Caloulator viding for Doubtful Accounts the end of the current year, the accounts recelvable account has a debit balance of $2.930,000 and sales for the year total $27.400,000 The allowance account b fore adyishment has a dda balan, of S9,500. Bad der "xpense is estimated at 24 di%of sales The allowance account before a Atment handelt balance or sasoo. An ayng a the acounti mehe astomer l ape ndate anatraded a The aloance accent before ad u tment has ende balance of$31A00. Bad ele ed hd at 1a i% due akan termine the amount of the adjusting entry to provide for doubtful accounts under each of the assumptions ( hrough d) listed above An estimati based on a percent of sales determines the amount of the astg eny based on the amout ted for d Dubd. The amount entimated of sales. oance for Doubeul Accounts equal to that aatimated by the aging achedule

Answer 1

• Bad debt expense = 3/4 of 1% of sales = 3/4 of $274000 = $2,05,500
• Bad debt expense = Debit balance in allowance account + Estimated doubtful accounts = $9500 + $188000 = $1,97,500
• Bad debt expense = 1/2 of 1% of sales =1/2 of $274000 = $1,37,000
• Bad debt expense = Estimated doubtful accounts - credit balance in allowance account = $1,75,000 - $31,400 = $1,43,600