Amount of the adjustment for doubtful accounts

Reference no: EM13257543

At the end of the current year, the accounts receivable account has a balance of $650,000, and net sales for the year total $5,500,000. Determine the amount of the adjustment for doubtful accounts under each of the following assumptions:

The allowance account before adjustment has a negative balance of $3,175. Bad debt expense is estimated at ¼ of 1% ofnet sales.
The allowance account before adjustment has a negative balance of $4,600. An aging of the accounts in the customer's ledger indicates estimated doubtful accounts of $17,500.
The allowance account before adjustment has a positive balance of $8,100. Bad debt expense is estimated at ½ of 1% of net sales.
The allowance account before adjustment has a positive balance of 8,100. An aging of the accounts in the customer's ledger indicates estimated doubtful accounts of $24,650.

Reference no: EM13257543

Questions Cloud

Define procedure for performing subtraction by 2s-compliment : 1.) (a) What is the difference between the sign-magnitude and 2's-complement systems of representing signed binary numbers. (b) What is the advantage of using the 2's-complement system to represent signed numbers.

What is meant by requirements gathering : Why are databases important to business? How do databases generate sales and-or profits? What databases do you interact with, and how do they benefit you?

What is meant by major fund reporting : What is meant by "major fund reporting"? How does this differ from reporting by fund type? For what fund types is major fund reporting required?

Explain what is the volume occupied by mol of helium gas : What is the volume occupied by 0.118 mol of helium gas at a pressure of .97 atm and a temperature of 305k?

Amount of the adjustment for doubtful accounts : At the end of the current year, the accounts receivable account has a balance of $650,000, and net sales for the year total $5,500,000. Estimate the amount of the adjustment for doubtful accounts under each of following assumptions:

Problem related to trial balance : In taking out a Trial balance, a book keeper finds that he is out Rs.1600 excess debit. Being desirous of closing his books, he places the difference to a newly opened suspense account. In the next period, he discovers the following discrepancies.

Determine stability of closed loop system based on nyquist : Obtain polar plot using nyquist command. determine the stability of closed loop system based on nyquist criterion. design a compensator to meet the P.O. = 10%. Plot the before and after plot on the same nyquist plot.

How to use marketing techniques : Many non-profit organizations such as universities, churches, government agencies, and charities, are using marketing techniques very similar to the ones used by traditional businesses.

What was the balance in work in process inventory : What was the balance in Work in Process Inventory onJuly 1 if these were the only unfinished jobs? What was the predetermined overhead rate in June ifoverhead was applied on the basis of direct labor cost?

User Account

All Pages