a)
Introduction: Making a
To prepare: The journal entry related to
b)
Introduction: Making a journal entry is the first step in documenting a business transaction in the books of accounts. Journal is frequently called a day book since transactions are recorded as they happen.
To Prepare: The
c)
Introduction: As there is always a default risk involved in giving credit, bad debt expense is an undesirable cost of conducting business with clients on credit.
The bad debt expense and the presentation of accounts receivable in the
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Intermediate Accounting, 10 Ed
- The following accounts receivable information pertains to Marshall Inc. Determine the estimated uncollectible bad debt from Marshall Inc. using the balance sheet aging of receivables method, and record the year-end adjusting journal entry for bad debt.arrow_forwardElegant Universal uses the balance sheet aging method to account for uncollectible debt on receivables. The following is the past-due category information for outstanding receivable debt for 2019. To manage earnings more favorably, Elegant Universal considers changing the past-due categories as follows. A. Complete each table by filling in the blanks. B. Determine the difference between totals uncollectible. C. Describe the categories change effect on net income and accounts receivable.arrow_forwardOutpost Designs uses the balance sheet aging method to account for uncollectible debt on receivables. The following is the past-due category information for outstanding receivable debt for 2019. To manage earnings more favorably, Outpost Designs decided to change past-due categories as follows. Complete the following. A. Complete each table by filling in the blanks. B. Determine the difference between total uncollectible. C. Explain how the new total uncollectible amount affects net income and accounts receivable.arrow_forward
- Show how the amounts related to Accounts Receivable and Bad Debt Expense would be reported on the income statement and balance sheet for the current year.arrow_forward1. Prepare the entry to record the write-off ofuncollectible accounts during 2019. 2. Prepare the entries to record the recovery ofthe uncollectible account during 2019 3. Prepare the entry to record bad debt expense(BDE) at the end of 2019. Ending balance ofAFDA was Rp18,200 (Cr.) 4. Determine the ending balance of AccountsReceivable as of December 31, 2019. 5. What is the net realizable value of thereceivables at the end of 2019? 6. The company has a notes receivable ofRp24,000 at January 15, 2019 for 3 months at10% interest rate. Prepare journal entry as ofApril 15, 2019, on its due date.arrow_forwardQuestions: a. What is the correct bad debt expense for the year assuming that the allowance for doubtful accounts had a balance of P120,500 as of January 1, 2022? b. Your proposed adjusting journal entry to correct the balance of allowance for bad debts would include a net debit or credit of? (just indicate the amount)arrow_forward
- 1. What amount should be reported as allowance for doubtful accounts on December 31, 2019? 2. What amount should be reported as doubtful accounts expense for the current year? Please show solutions along with the answers. Thank you!arrow_forwardhow to calculate the year-end adjustment for Allowance for Uncollectible Accounts with a debit balance before year-end adjustments recorded?arrow_forwardAt what amount should Accounts Receivable, net of Allowance for Doubtful Accounts, be reported at December 31, 2021?arrow_forward
- Prepare the year-end adjusting entry for bad debts according to each of the following situations: Bad debt expense is estimated by adjusting the allowance for uncollectible accounts to the balance that reduces the carrying value of accounts receivable to the amount of cash expected to be collected. The allowance for uncollectible accounts is estimated to be 10% of the year-end balance in accounts receivable. Bad debt expense is estimated by adjusting the allowance for uncollectible accounts to the balance that reduces the carrying value of accounts receivable to the amount of cash expected to be collected. The allowance for uncollectible accounts is determined by an aging of accounts receivable.arrow_forwardOn 28 February 2019, the debtors control account in the General Ledger of Lesego Fashions showed a debit balance of R8 735, while the debtors list in the Debtors ledger showed a total of R5 584. The errors and omissions described below were found on 28 February 2019. Required: Indicate in the table provided below, how the errors and omissions should be corrected in order to reconcile the control account balance with debtor's list total. Debtors ledger Debtors list No. General Ledger Debtors control Dr (+) Cr (-) Dr (+) Cr (-) 1. The debtors list was overcast by R500. 2. The balance of a debtor was omitted from the debtors list, R75. 3. The balance on the account of a debtor, R150, was brought down incorrectly as R15.arrow_forwardWhat is the adjusted balance of the Allowance for Bad Debts account as of December 31, 2016?arrow_forward
- Intermediate Accounting: Reporting And AnalysisAccountingISBN:9781337788281Author:James M. Wahlen, Jefferson P. Jones, Donald PagachPublisher:Cengage LearningPrinciples of Accounting Volume 1AccountingISBN:9781947172685Author:OpenStaxPublisher:OpenStax College