The following information is from the records of Mountainview Camera Shop: Accounts receivable, December 31, 2018 $80,000 (debit) Net credit sales for 2018 164,000 Accounts written off as uncollectible during 2018 16,000 Cash sales during 2018 45,000 The company uses the direct write−off method for bad debts. What is the amount of bad debts expense? A. $45,000 B. $80,000 C. $68,000 D. $16,000

The following information is from the records of Mountainview Camera Shop: Accounts receivable, December 31, 2018 $80,000 (debit) Net credit sales for 2018 164,000 Accounts written off as uncollectible during 2018 16,000 Cash sales during 2018 45,000 The company uses the direct write−off method for bad debts. What is the amount of bad debts expense? A. $45,000 B. $80,000 C. $68,000 D. $16,000

Name: The following information is from the records of Mountainview Camera
Uploaded: 2022-11-23T13:49:29.000Z
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Description: The following information is from the records of Mountainview Camera Shop: Accounts receivable, December 31, 2018$80,000 (debit)Net credit sales for 2018164,000Accounts written off as uncollectible during 201816,000Cash sales during 201845,000 Th

College Accounting (Book Only): A Career Approach

13th Edition

ISBN:9781337280570

Author:Scott, Cathy J.

Publisher:Scott, Cathy J.

ChapterB: Bad Debts

Section: Chapter Questions

Problem 3P: Nillsons Nursery uses the direct write-off method for recording bad debts. Required Journalize the...

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Nillsons Nursery uses the direct write-off method for recording bad debts. Required Journalize the following selected entries: 2012 Apr. 10Write off the account of P. A. Seldon as uncollectible, 458. July 27Write off the account of J. M. Weller as uncollectible, 268. Check Figure Total amount debited to Bad Debts Expense 726
McKinney Co. estimates its uncollectible accounts as a percentage of credit sales. McKinney made credit sales of 1,500,000 in 2019. McKinney estimates 2.5% of its sales will be uncollectible. Prepare the journal entry to record bad debt expense for McKinney at the end of 2019.
Michelle Company reports $345,000 in credit sales and $267,500 in accounts receivable at the end of 2019. Michelle currently uses the income statement method to record bad debt estimation at 4%. To manage earnings more efficiently, Michelle changes bed debt estimation to the balance sheet method at 4%. How much is the difference in net income between the income statement and balance sheet methods? A. $3,100 B. $13,800 C. $10,700 D. $77,500
The following information is from the records of Mountainview Camera Shop: Accounts receivable, December 31, 2024 $82,000 (debit) Net credit sales for 2024 162,000 Accounts written off as uncollectible during 2024 15,000 Cash sales during 2024 40,000 The company uses the direct write-off method for bad debts. What is the amount of bad debts expense? OA. $15,000 B. $82,000 C. $40,000 D. $65,000
The following information is from the records of Mountainview Camera Shop: Accounts receivable, December 31, 2018 Net credit sales for 2018 Accounts written off as uncollectible during 2018 15,000 Cash sales during 2018 41,000 The company uses the direct write-off method for bad debts. What is the amount of bad debts expense? OA. $62,000 B. $41,000 C. $15,000 D. $83,000 $83,000 (debit) 160,000
Information related to Lady Gangster Ltd. For 2021 is summarized below: Total credit sales L5,000,00 Accounts receivable at December 31 1,750,000 Bad debts written off 66,000 Required: a. What amount of bad debts expense will Lady Gangster Ltd. Report if it uses direct write-off method of accounting for bad debts?
Here is information related to Ayayai Company for 2022. Total credit sales $2,571,000 Accounts receivable at December 31 830,000 Uncollectibles written off 32,300 (a) What amount of bad debt expense will Ayayai Company report if it uses the direct write-off method of accounting for uncollectibles?$__________ (b) Assume that Ayayai Company uses the percentage-of-receivables basis to record bad debt expenseand concludes that 6% of accounts receivable will become uncollectible. What amount of bad debt expense will Ayayai record if Allowance for Doubtful Accounts has a credit balance of $4,300?$__________ (c) Assume that Ayayai Company uses the percentage-of-receivables basis to record bad debt expenseand concludes that 6% of accounts receivable will become uncollectible. What amount of bad debt expense will Ayayai record if Allowance for Doubtful Accounts has a debit balance of $4,300?$__________
Kings Company has the following data relating to accounts receivable for the year ended December 31, 2023: Accounts Receivable, January 1 P 325,000Allowance for Bad Debts, January 1 18,400Sales during the year, all on account, terms: 5/10, 3/15, n/30 2,800,000Cash received from customers during the year 2,260,000Accounts written off during the year 17,500Sales returns and allowances 14,280 An analysis of cash received from customers during the year revealed that P1,140,000 was received from customers availing the 10-day discount period, P873,000 was received from customers availing the 15-day discount period, P12,000 represented recovery of accounts written off, and the balance…
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Here is information related to Splish Company for 2022. Total credit sales $2,550,000 Accounts receivable at December 31 848,000 Uncollectibles written off 32,000 (a) What amount of bad debt expense will Splish Company report if it uses the direct write-off method of accounting for uncollectibles?$____________ (b) Assume that Splish Company uses the percentage-of-receivables basis to record bad debt expenseand concludes that 5% of accounts receivable will become uncollectible. What amount of bad debt expense will Splish record if Allowance for Doubtful Accounts has a credit balance of $3,700?$__________ (c) Assume that Splish Company uses the percentage-of-receivables basis to record bad debt expenseand concludes that 5% of accounts receivable will become uncollectible. What amount of bad debt expense will Splish record if Allowance for Doubtful Accounts has a debit balance of $3,700?$__________
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Here is information related to Mingenback Company for 2022. Total credit sales $2,500,000Accounts receivable at December 31 875,000Uncollectibles written off 33,000 Instructions a. What amount of bad debt expense will Mingenback Company report if it uses the direct write-off method of accounting for uncollectibles?b. Assume that Mingenback Company uses the percentage-of-receivables basis to record bad debt expense and concludes that 6% of accounts receivable will become uncollectible. What amount of bad debt expense will Mingenback record if Allowance for Doubtful Accounts has a credit balance of $3,000? b. Bad debt expense $49,500 c. Assume the same facts as in (b), except that there is a $3,000 debit balance in Allowance for Doubtful Accounts. What amount of bad debt expense will Mingenback record?d. What is the weakness of the direct write-off method of recording bad debt expense? Journalize entries to record transactions related to bad debts.

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Accounts receivable, December 31, 2018	$80,000 (debit)
Net credit sales for 2018	164,000
Accounts written off as uncollectible during 2018	16,000
Cash sales during 2018	45,000