The unadjusted trial balance at year-end for a company that uses the percent of receivables method to determine its bad debts expense, reports the following selected amounts: Accounts receivable$441,000?DebitAllowance for Doubtful Accounts 1310?DebitNet Sales 2,160,000?CreditAll sales are made on credit. Based on past experience, the company estimates 2.5% of ending account receivable to be uncollectible. What adjusting entry should the company make at the end of the current year to record its estimated bad debts expense?
A. Debit Bad Debts Expense $15,400; credit Allowance for Doubtful Accounts $15,400.
B. Debit Bad Debts Expense $5400; credit Allowance for Doubtful Accounts $5400.
C. Debit Bad Debts Expense $11,025; credit Allowance for Doubtful Accounts $11,025.
D. Debit Bad Debts Expense $12,335; credit Allowance for Doubtful Accounts $12,335.
E. Debit Bad Debts Expense $9715; credit Allowance for Doubtful Accounts $9715.
Answer: D
You might also like to view...
The entry to record the retirement of treasury stock will include a debit to Common Stock for the par value of the retired shares
Indicate whether the statement is true or false
According to longitudinal studies, the two Big Five dimensions most dependent on genes are
A. neuroticism and agreeableness. B. openness and conscientiousness. C. extraversion and openness. D. agreeableness and openness. E. conscientiousness and extraversion.
When a person has control over punishments in an organization, they possess ________ power.
A. coercive B. reward C. personal D. referent E. expert
Most people recognize Butterball as a brand of turkey, but Butterball brand is also found on fresh turkey breast cuts, turkey sausages, ground turkey, lunchmeat cold cuts, fresh marinated bone-in, boneless, and whole chicken, frozen chicken products, and Butterball stuffing and gravy mixes. Butterball uses:
A. dealer branding B. brand grouping C. family branding D. generic branding E. cobranding