User Account

All Pages

What amount of bad debts expense will bee record

Assignment Help Accounting Basics
Reference no: EM131144334

Information related to Bee Company for 2010 is summarized below.

Total credit sales........... $1,100,000
Accounts receivable at December..... 31 369,000
Bad debts written off.......... 22,150

Instructions

(a) What amount of bad debts expense will Bee Company report if it uses the direct write-off method of accounting for bad debts?

(b) Assume that Bee Company decides to estimate its bad debts expense to be 2% of credit sales. What amount of bad debts expense will Bee record if Allowance for Doubtful Accounts has a credit balance of $3,000?

(c) Assume that Bee Company decides to estimate its bad debts expense based on 6% of accounts receivable. What amount of bad debts expense will Bee Company record if Allowance for Doubtful Accounts has a credit balance of $4,000?

(d) Assume the same facts as in (c), except that there is a $2,000 debit balance in Allowance for Doubtful Accounts.What amount of bad debts expense will Bee record?

(e) What is the weakness of the direct write-off method of reporting bad debts expense? 

Reference no: EM131144334

Questions Cloud

Explain the idea of value based management and how sharehold : Explain the idea of value-based management and how shareholder value relates to the interaction between product and capital markets
Determine the value of ending inventory if the sales value : Determine the value of ending inventory if the sales value at splitoff method is used for product costing. Round to three decimal places when necessary.
Journalize and post to the allowance account the following : May 1, a check for $1,900 is received from the customer whose account was written off as uncollectible on March 1.
Determine the amount of joint cost allocated to each product : Determine the amount of joint cost allocated to each product if the physical-measure method is used.
What amount of bad debts expense will bee record : Assume the same facts as in (c), except that there is a $2,000 debit balance in Allowance for Doubtful Accounts.What amount of bad debts expense will Bee record?
Assume that no cash discounts were taken on the collections : Prepare the journal entries to record each of these five transactions. Assume that no cash discounts were taken on the collections of accounts receivable.
Determine the amount allocated to each product if the estima : Determine the amount allocated to each product if the estimated net realizable value method is used, and compute the cost per case for each product.
Kloppenberg company prepares financial statements annually : Kloppenberg Company prepares financial statements annually. During the year the following selected transactions occurred.
Describe what would happen to a company value chain : Describe what would happen to a company’s value chain if all electronic devices and systems suddenly were unavailable and an expected time for resolution time was unknown. Could a value chain be maintained without electronics and technology to suppor..

Reviews

Write a Review

Accounting Basics Questions & Answers

  Conduct business through a foreign subsidiary

A U.S. manufacturer wants to conduct business through a foreign subsidiary organized in a low tax jurisdiction. How might it do so without being currently taxed on the subsidiary's foreign earnings?

  Insider trading and accounting professionals

Vincent Klein is a CPA and an employee benefits specialist on client audits with Foster & Lewis, a large public accounting firm in Denver, Colorado.

  Ott purchased 11 shares of happy new year amp co stock on

ott purchased 11 shares of happy new year amp co. stock on january 3 20x1 at 20 a share to celebrate the new year and

  Assume that the ratio of net sales assets for each company

Interpret the differences in the ratio of net sales to assets in terms of the operating characteristics of each of the respectivesegments.

  Shaun amp kayla earned the following in 2013 interest on a

1. your brother is short on cash and cannot pay his rent this month. you pay his rent for him. is this taxable income

  When examining payroll transactions an auditor is primarily

when examining payroll transactions an auditor is primarily concerned with the possibility ofa posting of gross

  Give the journal entries for marg company

Give the journal entries for Marg Company at the dates indicated for each of the two independent cases. If no entry is required, explain why. Use the following format: Complete the following schedule to show the separate amounts that should be report..

  Cumulative provision related to the preferred stock mean

With the class divided into groups, answer the following questions as if you were the chief financial officer for Harris Corporation - What does the cumulative provision related to the preferred stock mean?

  The local office of tourism sells souvenir calendars sue

the local office of tourism sells souvenir calendars. sue the head of the office needs to order these calendars in

  The company uses residual income with a minimum required

in august the universal solutions division of jugan corporation had average operating assets of 670000 and net

  What is the minimum line of credit that cbm will need?

What is the minimum line of credit that CBM will need?

  Wilson co purchased land as a factory site for 800000

wilson co. purchased land as a factory site for 800000. wilson paid 80000 to tear down two buildings on the land.

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd