c. Decreases total assets by $1,600 d. Has no effect on total assets Estimating

Question

c. Decreases total assets by $1,600 d. Has no effect on total assets Estimating the Bad Debts Expense Winstead & Company has accounts receivable of S a debit balance of $1,000 in the Allowance for able are current and one third is past due. The firm estimates that two percent of the current accounts and five percent of the past due accounts will prove to be uncollectible. The adjusting entry to provide for the bad debts expense under the aging method should be for what amount? a. $3,600 b. $4,600 c. $2,600 d. $1,600 SE8-3. Doubtful Accounts. Two thirds of the accounts receiv- ncountr rereivahle turnover of 20. What is the

Explanation / Answer

Solution:(1): Calculation of bad debt expense under the aging method:

Bad Debt Expense = [(120000*2/3)*2%] + [(120000*1/3)*5%] + 1000 = $4,600

Therefore, Option(b) is correct.

Related Questions

Navigate

• Browse (All)
• Browse C
• Subjects

---

---

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