a ounts for A T. The Allowance for Bad Detts account has a credit balance of the
ID: 2565911 • Letter: A
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a ounts for A T. The Allowance for Bad Detts account has a credit balance of the balance of the Allowance for Bad A. 6,500 O B. $22,500 O c. $13,050 OD. $14,500 8 Dean At is a new busihess Duringrtr a rionsrd ae ar $40 000 and odeS 534 00 nt 3aowa w tten om Management uses the agrg l-toce a les method toa balance of the Allowance for Bad Debts is ont tor bad debts per otr ated soco as rooldbleyear rd. Tha OA. $100 B. $1,300 O c. $800 OD, $600 Cal uate the amoun of nee "aeatmatrtyno dare rien eda at 11%. calculations to two decimal places, and your final answer to the nearest dollar) "9 on April 1, 2017, Barr e Servce, receved a 9 month rate sor S1300 O B. $1,180 O c. $1,073 , $1,430 On October 1, 2017, Ealys Jewelers acepted a 4mont, 10% note for sa.000 in settlement at an overdue acontecewatie The December 31. Calculate the accrued interest on the note at December 31, 2017. (Round any intermediate caloulations to two decimal places, and your fenal to the nearest dolar) .10 A. $800 B.$267 O C. $400 O D. $200Explanation / Answer
7. As given the Begining balance of Allowance for Bad debt account is $8,000
On the basis of againg of accounts receivable the uncollectable account is $14,500
So current year a further bad debt expense of $6,500(14,500 -$8,000) need to be created by posting following entry,
Dr. Bad Debt Expense $ 6,000
Cr. Allowance for Bad Debt $6,500
After posting this adjusting entry the year end Allowance for bad debt account is $14,500 and this will reported on the balance sheet.
Answer D. $14,500
8. Out of total accounts receivable of $6,000($40,000 -$34,000) ,$700 written off . So balance accounts receivable is $ $5,300. Out of this $5,300 managment estimate $600 is uncollectable , so the adjusting entry will be
Dr. Bad Debt Expense $ 600
Cr. Allowance for Bad Debt $600
The ending balance of Allowance for Bad Debt is $600
9.Interest Due at maturiy = $13,000 X 11% X 9/12 = $1072.50 or $1,073(rounded off)
Answer : C. $1,073
10.Accrued interest on the Note: $8,000 X 10% X 3/12 = $200
Answer : D $200
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