Jars Plus recorded $862,430 in credit sales for the year and $489,000 in accounts receivable. The uncollectible percentage is 2.3% for the income statement method, and 3.0% for the balance sheet method A. Record the year-end adjusting entry for 2018 bad debt using the income statement method. B. Record the year-end adjusting entry for 2018 bad debt using the balance sheet method. C. Assume there was a previous debit balance in Allowance for Doubtful Accounts of $10,220, record the year-end entry for bad debt using the income statement method, and then the entry using the balance sheet method. D. Assume there was a previous credit balance in Allowance for Doubtful Accounts of $5,470, record the year-end entry for bad debt using the income statement method, and then the entry using the balance sheet method. If an amount box does not require an entry, leave it blank. If required, round final answers to two decimal places. A. Dec. 31 sad Debt Expense 88 88 88 . Allowance for Doubtrul Accounts To record bad debt, income statement method B. Dec. 31 sad Debt Expense Allowance for Doubtful Accounts To record bad debt, balance sheet method C. Dec. 31 sad Dept Expense Allowance for Doubtful Accounts To record bad debt, income statement method Dec. 31 Bad Debt Expense Allowance for Doubtrul Accounts To record bad debt, balance sheet method, previous debit balance D. Dec. 31 Bad Debt Expense Allowance for Doubtrul Accounts To record bad debt, income statement method Dec. 31 sad Debt Expense Allowance for Doubtful Accounts To record bad debt, balance sheet method, previous credit balance 88 88

Principles of Accounting Volume 1
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ISBN:9781947172685
Author:OpenStax
Publisher:OpenStax
Chapter9: Accounting For Receivables
Section: Chapter Questions
Problem 4PA: Jars Plus recorded $861,430 in credit sales for the year and $488,000 in accounts receivable. The...
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Jars Plus recorded $862,430 in credit sales for the year and $489,000 in accounts receivable. The uncollectible percentage is 2.3% for the income statement method, and 3.0% for the balance sheet method.
A. Record the year-end adjusting entry for 2018 bad debt using the income statement method.
B. Record the year-end adjusting entry for 2018 bad debt using the balance sheet method.
C. Assume there was a previous debit balance in Allowance for Doubtful Accounts of $10,220, record the year-end entry for bad
debt using the income statement method, and then the entry using the balance sheet method.
D. Assume there was a previous credit balance in Allowance for Doubtful Accounts of $5,470, record the year-end entry for bad
debt using the income statement method, and then the entry using the balance sheet method.
If an amount box does not require an entry, leave it blank. If required, round final answers to two decimal places.
A. Dec. 31 Bad Debt Expense
88
88
88
38
88
88
Allowance for Doubtrul Accounts
To record bad debt, income statement method
B. Dec. 31 Bad Debt Expense
Allowance for Doubtrul Accounts
To record bad debt, balance sheet method
C. Dec. 31 Bad Debt Expense
Allowance for Doubtful Accounts
To record bad debt, income statement method
Dec. 31 Bad Debt Expense
Allowance for Doubtrul Accounts
To record bad debt, balance sheet method, previous debit balance
D. Dec. 31 Bad Debt Expense
Allowance for Doubtful Accounts
To record bad debt, income statement method
Dec. 31 Bad Debt Expense
Allowance for Doubtful Accounts
To record bad debt, balance sheet method, previous credit balance
Transcribed Image Text:Jars Plus recorded $862,430 in credit sales for the year and $489,000 in accounts receivable. The uncollectible percentage is 2.3% for the income statement method, and 3.0% for the balance sheet method. A. Record the year-end adjusting entry for 2018 bad debt using the income statement method. B. Record the year-end adjusting entry for 2018 bad debt using the balance sheet method. C. Assume there was a previous debit balance in Allowance for Doubtful Accounts of $10,220, record the year-end entry for bad debt using the income statement method, and then the entry using the balance sheet method. D. Assume there was a previous credit balance in Allowance for Doubtful Accounts of $5,470, record the year-end entry for bad debt using the income statement method, and then the entry using the balance sheet method. If an amount box does not require an entry, leave it blank. If required, round final answers to two decimal places. A. Dec. 31 Bad Debt Expense 88 88 88 38 88 88 Allowance for Doubtrul Accounts To record bad debt, income statement method B. Dec. 31 Bad Debt Expense Allowance for Doubtrul Accounts To record bad debt, balance sheet method C. Dec. 31 Bad Debt Expense Allowance for Doubtful Accounts To record bad debt, income statement method Dec. 31 Bad Debt Expense Allowance for Doubtrul Accounts To record bad debt, balance sheet method, previous debit balance D. Dec. 31 Bad Debt Expense Allowance for Doubtful Accounts To record bad debt, income statement method Dec. 31 Bad Debt Expense Allowance for Doubtful Accounts To record bad debt, balance sheet method, previous credit balance
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