What is the answer for 9, 10 and 16 9. The following information pertains to Lig

ID: 2539647 • Letter: W

Question

What is the answer for 9, 10 and 16
9. The following information pertains to Lightning, Inc. at the end of December before Adjusting Journal Entries have been made: Credit Sales Accounts Payable Accounts Receivable Allowance for Uncollectible Accounts Cash Sales $84,000 21,000 10,000 750 (credit) 30,000 Their aging of receivables and estimated percentages uncollectible are: Total AGE OF . | %Estimated: RECEIVABLES Current 1-30 days past | $1,000 | 2096 Total $340 $200 I S8.500 | 4% due 31-60 days past due 500 | 60% $300 if they use the aging How much bad debt expense would calculate ending balance of the Allowance for Uncollectible Accounts? a. $750 b. $840 c. $9,160 s90 10. The journal entry used to record which of the following would include a debit to Allowance for Uncollectible Accounts? a. Sale of inventory on account. d Estimating the annual allowance for uncollectible accounts. c. Estimating annual sales returns. d. Write-offs of bad debts.

Explanation / Answer

amount of total uncollectible on the basis of aging of receivables

840

credit balance in allowance for uncollectible debts

-750

bad debt expense

840-750

answer is d

write off bad debts

Journal entry

allowance for uncollectible debts

accounts receivables

Answer is D

if a company uses lifo for tax purposes, it must also use lifo for financial reporting