Multiple Choice Question 96 In 2016, Warehouse 13-had net credt sales of $741000

Question

Multiple Choice Question 96 In 2016, Warehouse 13-had net credt sales of $741000. On January 1, 2016, Allowance for Doubtful Accounts had a credit balance of $15990. During 2016, $29060 of uncollectible accounts receivable were written off. Past experience indicates the accounts receivable balance at December 31 was $150000, what is the required adjustment to the Allowance for Doubtful Accounts at December 31, 2016 that the allowance should be 10% of the balance in receivables (percentage of receivable basis). If O $2B070 $30990 O $150000 $29060

Explanation / Answer

Answer: $28070

Reason:Balance in provision account at the end should be 10% i.e $15000

Answer: $8940

Bad debt expense=

Uncollectible estimated at the end of year+ bad debts written off during the year-opening provision

=$40800+$3940-$35800=$8940

Answer: $33240

Answer: $65420

Bad debts to be reported= Bad debts expenses-recovered

=$70500-$5080=$65420

Answer: 1st journal entry

Uncollectible a/c dr. 1450

To a/c receivables 1450

Do give your feedback!! Happy Learning :)

$ $ To bad debts written off 29060 By balance b/d 15990 To balance c/d 15000 By AdAdjustment 28070

Related Questions

Navigate

• Browse (All)
• Browse M
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.