14. Two (2) methods for computing or estimating uncollectible accounts are: A) P
ID: 2576572 • Letter: 1
Question
14. Two (2) methods for computing or estimating uncollectible accounts are: A) Percentage (%) of Assets and percentage (%) of Net Sales. B) Percentage (%) of Accounts Receivables and percentage (%) of Total Revenue. C) Percentage (%) of Current Assets and percentage (%) of Net Sales. D) Percentage (%) of Accounts Receivables and percentage (%) of Net Sales. 15. An aging of a company's accounts receivable (A/R) indicates that $9,000 are estimated to be uncollectible as an Ending Balance in the Allowance for Doubtful Accounts (ADA). The ADA account currently has a S1,100 credit balance, the adjustment to record bad debts for the period will require a A) debit to Bad Debts Expense for $9,000. B) debit to Allowance for Doubtful Accounts for $7,900. C) debit to Bad Debts Expense for $7,900. D) credit to Allowance for Doubtful Accounts for $9,000. 16. An aging of a company's Accounts Receivable indicates that $4,000 are estimated to be uncollectible as an Ending Balance in the Allowance for Doubtful Accounts (ADA). The ADA account currently has a $1,200 credit balance, the adjustment to record bad debts for the period will require a A) Debit (DR) to Bad Debts Expense for $4,000. B) Debit (DR) to Allowance for Doubtful Accounts for $2,800. C) Debit (DR) to Bad Debts Expense for $2,800. D) Credit (CR) to Allowance for Doubtful Accounts for $4,000. 17. Using the percentage (%) of Accounts Receivables method for recording bad debts expense, the Ending Balance in the Allowance for Doubtful Accounts (ADA) is computed or estimated at $15,000. If the current balance of the ADA Account is $3,000 credit (CR) before adjustment, what is the amount of Bad Debts expense for that period? A) $15,000 B) $12,000 C) $18,000 D) $3,000 18. Using the allowance method, the Ending Balance in Uncollectible Accounts (ADA) for the year is estimated to be $28,000. If the balance for the Allowance for Doubtful Accounts (ADA) is a $7,000 debit (DR) before adjustment, what debts expense for the period? A) $7,000 B) $21,000 C) $28,000 D) $35,000 is the amount of badExplanation / Answer
14.
The two methods for computing or estimating the uncollectible accounts are the Percentage of Accounts receivable and Percentage of net sales.
The answer is D.
15.
Estimated ending balance in the allowance for doubtful accounts = 9,000
Credit balance in the allowance for doubtful accounts = 1,100
Bad debt expense = 9,000 - 1,100 = 7,900
Journal entry
The answer is C.
16.
Estimated ending balance in the allowance for doubtful accounts = 4,000
Credit balance in the allowance for doubtful accounts = 1,200
Bad debt expense = 4,000 - 1,200 = 2,800
Journal entry
The answer is C.
17.
Estimated ending balance in the allowance for doubtful accounts = 15,000
Credit balance in the allowance for doubtful accounts = 3,000
Bad debt expense = 15,000 - 3,000 = 12,000
The answer is B.
18.
Estimated ending balance in the allowance for doubtful accounts = 28,000
Debit balance in the allowance for doubtful accounts = 7,000
Bad debt expense = 28,000 + 7,000 = 35,000
The answer is D.
Bad debts 7,900 Allowance for doubtful accounts 7,900Related Questions
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