55/115.Craigmont uses the allowance method to account for uncollectible accounts

Question

55/115.Craigmont uses the allowance method to account for uncollectible accounts. Its year-end unadjusted trial balance shows Accounts Receivable of $104,500, allowance for doubtful accounts of $665 (credit) and sales of $925,000. If uncollectible accounts are estimated to be 4% of accounts receivable, what is the amount of the bad debts expense adjusting entry? A. $4,845 B. $4,180 C. $3,515 D. $3,700 E. $3,850 56/116.Craigmont uses the allowance method to account for uncollectible accounts. Its year-end unadjusted trial balance shows Accounts Receivable of $104,500, allowance for doubtful accounts of $665 (credit) and sales of $925,000. If uncollectible accounts are estimated to be 0.5% of sales, what is the amount of the bad debts expense adjusting entry? A. $4,625 B. $3,960 C. $5,290 D. $4,750 E. $4,825 57,1 17.On July 9, Mifflin Company receives a $8,500. 90-day, 8% note from customer Payton Summers as payment on account. Compute the maturity date for the note A. October 8 B. October 7 C. November 8 D. November 7 E. November 6

Explanation / Answer

Answer to 55/115 : Option B i.e. $104,500 x 4% = $4,180

Answer to 56/116 : Option A i.e. $925,000 x 0.5% = $4,625

Answer to 57/117 : Option B i.e. 7th October

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