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2cengagenow.com Alim/takeAssignment/tak eAssignmentM ain.do?invoker assignments&takeAssignmentSessionLocator; a Ch 94 eBook Show Me How Print Item Calculator Providing for Doubtful Accounts t the end of the current year, the accounts receivable account has a debit balance of $688,000 and sales for the year total $7,800,000. a. The allowance account before adjustment has a reat balance of S900. Bad debt ee oense S oontod ae n·of t-of set b. The allowance account before adjustment has a credit balance of $9,300. An aging of the accounts in the customer ledger indicates estimated doubtful accounts of $29,800 C. The allowance account before adjustment has a debit balance of $8,500. Bad debt expense is estimated at 3/4 of 1% of sales d. The alowance account before adjustment has a debit balance of $8,500, An aging of the accounts in the customer ledger indicates estimated doubtful accounts of $70,600. Detemine the amount of the adjusting entry to provide for doubtful accounts under each of the assumpbons (a through d) listed above. a. b. 28,800 X 29,800X d. An estreate based on a percent of sales determines the amount of the adjusting entry based on the amount esimated for Bad Dobt Expanse. The amount estimated for Bad Deet Expense is based on a per An essmate based on an analysis (an aging) of accounts recevable focuses on the Alowance for Doubeui Accounts. The amount of tho adjucting entry is the amount that willyietd an adjusted bafance in he equal to that estimated by the aping scredule Leaming Objectivo 4 sermont Score 66B4% Type here to search 00 e

Explanation / Answer

1-

sales

7800000

balance in allowance account

Bad debt expense

1/4 of 1% of sales

19500

credit balance in allowance account

-9300

adjustment amount of doubtful account

10200

2-

Doubtful account

29800

credit balance in allowance account

-9300

adjustment amount of doubtful account

20500

3-

sales

7800000

balance in allowance account

Bad debt expense

3/4 of 1% of sales

58500

debit balance in allowance account

8500

adjustment amount of doubtful account

67000

4-

Doubtful account

70600

debit balance in allowance account

8500

adjustment amount of doubtful account

79100

1-

sales

7800000

balance in allowance account

Bad debt expense

1/4 of 1% of sales

19500

credit balance in allowance account

-9300

adjustment amount of doubtful account

10200

2-

Doubtful account

29800

credit balance in allowance account

-9300

adjustment amount of doubtful account

20500

3-

sales

7800000

balance in allowance account

Bad debt expense

3/4 of 1% of sales

58500

debit balance in allowance account

8500

adjustment amount of doubtful account

67000

4-

Doubtful account

70600

debit balance in allowance account

8500

adjustment amount of doubtful account

79100

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