Adjustment to record bad debts

Assignment Help Accounting Basics
Reference no: EM13136940

An aging of a company's accounts receivable indicates that $3,000 is estimated to be uncollectible. If Allowance for Doubtful Accounts has a $1,200 credit balance, the adjustment to record bad debts for the period will require a:

a) debit to Bad Debts Expense for $3,000.

b) debit to Allowance for Doubtful Accounts for $1,800.

c) debit to Bad Debts Expense for $1,800.

d) credit to Allowance for Doubtful Accounts for $3,000.

Reference no: EM13136940

Questions Cloud

Implementation and monitoring in problem solving : Discuss the importance of implementation and monitoring in problem solving. Explain the uses of MISs and describe their inputs and outputs. Discuss information systems in the functional areas of business organizations.
What should be the noncontrolling interest expense : what should be the noncontrolling interest expense in the consolidated financial statetemes of parminter?
List out the parties who you believe are most responsible : List out the parties who you believe are most responsible for that crisis. Briefly justify each of your choices.
Question regarding program evaluation : A program evaluator is both blessed and cursed with the myriad of possible information sources available. Simply put, these are sources (resources) from which and whom information is obtained and used to assist in the evaluation process.
Adjustment to record bad debts : An aging of a company's accounts receivable indicates that $3,000 is estimated to be uncollectible. If Allowance for Doubtful Accounts has a $1,200 credit balance, the adjustment to record bad debts for the period will require a:
How much warranty expense does the company report : It records warranty expense with an adjusting entry at the end of each year. How much warranty expense does the company report in 2009 for this copier?
Social aspects of science : Mark Erickson (2005), concludes our text by stating, "While it is important to understand the social aspects of science, the reverse may be even more important: that to understand society and culture, we need to understand science.
Paper on ethnicity and the of ethnocentrism has in society : write a 2-3 page paper about ethnicity and the of ethnocentrism has in society
How did these factors affect the net income for fiscal : Consider the overall effect of these two ratios. Did Foot Locker, Inc. improve during fiscal 2007? How did these factors affect the net income for fiscal 2007?

Reviews

Write a Review

Accounting Basics Questions & Answers

  Describe the accounting rules and regulations

Describe the accounting rules and regulations you would introduce to ensure that these types of accounting irregularities do not occur in the future.

  Which category completely excludes equity securities

Which category completely excludes equity securities?

  How much gain does lee realize and recognize as a result

How much gain does Lee realize and recognize as a result of these transfers?

  Plantwide versus department overhead rates

Suppose that instead of using a plantwide overhead rate, the company had used a separate predetermined overhead rate in each department. Under these conditions:

  Direct materials price variance problem

A company developed the following per-unit standards for its product: 2 pounds of direct materials at $4 per pound. Last month, 1,000 pounds of direct materials were purchased for $3,800. The direct materials price variance for last month was:

  How much income is each beneficiary entitled to receive

The Ricardo trust is a simple trust that correctly uses the calendar year for tax purposes. Its income beneficiaries (Lucy and Ethel) are entitled to the trust's annual accounting income in shares of one-half each.

  Determining the felts gross profit

The beginning inventory (Jan. 1, 2010) was $170,000; in the past Felt's gross profit has averaged 40% of selling price.

  What is the length of the firm cash conversion cycle

Luke Company has an inventory conversion period of 60 days a receivables conversion period of 45 days, and a payments cycle of 30 days. What is the length of the firm's cash conversion cycle?

  Derivative securities analysis

You're considering the S&P 500 futures contract. On the 1st November 2010, the S&P was trading at 1127,17 when futures contracts maturing on 1st March 2011 were priced at 1119,70. The annualised interest rate is 1,25% and the annualised dividend y..

  Taxpayer sells depreciable business property

A business taxpayer sells depreciable business property with an adjusted basis of $400,000 for $32,000. The taxpayer held the property for more than a year. The taxpayer has an $8000 long term capital loss.

  Using the installment-sales method

Using the installment-sales method, make summary entries to record: (a)   the installment sales and cash collections; (b)   the cost of installment sales; (c)   the unrealized gross profit; (d)   the realized gross profit.

  Are there any differences between inside and outside basis

Drew and Emma formed the equal D&E Partnership on January 1 of the current year. Drew contributed $50,000 of cash and land with a fair market value of $100,000 and an adjusted basis of $80,000. Emma contributed equipment with a fair market value o..

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!

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