Give the entry for estimated bad debts assuming that the allowance is to provide for doubtful accounts on the basis of (a) 8% of gross A/R and (b) 1.5% of net sales.

Related BrainMass Solutions

• Computing Bad Debts and Preparing Journal Entries

  Accounts Receivable $90,000 Allowance for Doubtful Accounts 1,750 Sales (all on credit) $680,000 Instructions Give the entry for estimated bad debts assuming that the allowance is to provide for doubtful accounts

• Bad debts

  580,000 credit Give the entry for estimated bad debts assuming that the allowance is to provide for doubtful accounts on the basis of (a) 4% of gross accounts receivable and (b) 1% of net sales.

• Journal entries for estimated bad debts and allowance

  Accounts receivable $100,000 Allowance for doubtful accounts $2,500 Sales (all on credit) 750,000 Sales returns and allowances 40,000 Instructions (a) Prepare the entries for estimated bad debts assuming that doubtful accounts

• Preparing an adjusting entry

  (2) 1.5 percent of 2011 net sales are uncollectible. (3) An aging schedule of the accounts shows that $21,400 of the accounts are uncollectible. Note that the allowance for doubtful accounts above is a DEBIT balance!

• Allowance for Doubtful Accounts

  Assume that this company's bad debts are estimated and recorded as 1.5% of credit sales. 1. Show how Accounts Receivable and the Allowance for Doubtful Accounts would appear on the balance sheet after adjustment. 2.

• The trial balance before adjustment of Pratt Company reports the following balances.... Prepare the entries for estimated bad debts assuming that doubtful accounts are estimated to be (1) 7% of gross accounts receivable and (2) 1% of net sales.

  are estimated to be (1) 7% of gross accounts receivable and (2) 1% of net sales.

• Journal Entries to Record Allowance for Doubtful Accounts

  (b) If Allowance for Doubtful Accounts has a credit balance of $2,100 in the trial balance, journalize the adjusting entry at December 31, assuming bad debts are expected to be (1) 1% of net sales, and (2) 10% of accounts receivable.

• Journalizing various receivable transactions.

  charge without recourse.. 3 Journal entry for Allowance for Doubtful accounts at 5% of Accounts Receivable: 4 Journal entry for Allowance for Doubtful accounts at 1 1/2 % of Net sales.

• Methods for Accruing Bad Debts and Uncollectible Accounts

  Because there is an "allowance for doubtful accounts" account....the only way to get such a balance is by estimating for bad debts and then writing off actual bad debts against the estimate (allowance) in the period it turns bad. 2.