Warner Company's year-end unadjusted trial balance shows accounts receivable of $107,000

Warner Company's year-end unadjusted trial balance shows accounts receivable of $107,000, allowance for doubtful accounts of $680 (credit), and sales of $360,000. Uncollectibles are estimated to be 1.50% of accounts receivable.

1. Prepare the December 31 year-end adjusting entry for uncollectibles.

No	Date	General Journal	Debit	Credit
1	Dec 31	Bad debts expense 107000*1.5%-680selected answer correct	925selected answer correct	not attempted
		Allowance for doubtful accountsselected answer correct	not attempted	925selected answer correct

2. What amount would have been used in the year-end adjusting entry if the allowance account had a year-end unadjusted debit balance of $700? 107000*1.5%+700

	Amount used in the year-end adjusting entry $2,305selected answer correct

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10.

At each calendar year-end, Mazie Supply Co. uses the percent of accounts receivable method to estimate bad debts. On December 31, 2017, it has outstanding accounts receivable of $53,500, and it estimates that 5% will be uncollectible.

Prepare the adjusting entry to record bad debts expense for year 2017 under the assumption that the Allowance for Doubtful Accounts has:

1. (a) a $910 credit balance before the adjustment.
2. (b) a $268 debit balance before the adjustment.

3. No	Transaction	General Journal	Debit	Credit
   1	(a)	Bad debts expense 53500*5%-910selected answer correct	1,765selected answer correct	not attempted
   		Allowance for doubtful accountsselected answer correct	not attempted	1,765selected answer correct
   2	(b)	Bad debts expense 53500*5%+268selected answer correct	2,943selected answer correct	not attempted
   		Allowance for doubtful accountsselected answer correct	not attempted	2,943

Warner Company's year-end unadjusted trial balance shows accounts receivable of $108,000, allowance for doubtful accounts of $690

Warner Company's year-end unadjusted trial balance shows accounts receivable of $108,000, allowance for doubtful accounts of $690 (credit), and sales of $370,000. Uncollectibles are estimated to be 0.50% of sales.

Prepare the December 31 year-end adjusting entry for uncollectibles.

No	Date	General Journal	Debit	Credit
1	Dec 31	Bad debts expenseselected answer correct	1,850selected answer correct	not attempted
		Allowance for doubtful accountsselected answer correct	not attempted	1,850selected answer correct

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8.

At year-end (December 31), Chan Company estimates its bad debts as 0.50% of its annual credit sales of $846,000. Chan records its Bad Debts Expense for that estimate. On the following February 1, Chan decides that the $423 account of P. Park is uncollectible and writes it off as a bad debt. On June 5, Park unexpectedly pays the amount previously written off.

Prepare the journal entries for these transactions.

No	Date	General Journal	Debit	Credit
1	Dec 31	Bad debts expenseselected answer correct	4,230selected answer correct	not attempted
		Allowance for doubtful accountsselected answer correct	not attempted	4,230selected answer correct
2	Feb 01	Allowance for doubtful accountsselected answer correct	423selected answer correct	not attempted
		Accounts receivable—P. Parkselected answer correct	not attempted	423selected answer correct
3	Jun 05	Accounts receivable—P. Parkselected answer correct	423selected answer correct	not attempted
		Allowance for doubtful accountsselected answer correct	not attempted	423selected answer correct
4	Jun 05	Cashselected answer correct	423selected answer correct	not attempted
		Accounts receivable—P. Parkselected answer correct	not attempted	423