I understand that only one question can be answered but I need to post everythin
ID: 2508639 • Letter: I
Question
I understand that only one question can be answered but I need to post everything for my question to be answered. I need to know: Bad Debts Expense – (A) which financial statement does it appear on and (B) what type of expense account is it? of this whole journal entry.
Thank you!
Journal entry – using percentage of receivables method. Taiga-Barrett Company uses the percentage of receivable method for records it’s Bad Debt Expense. Total credit sales were $3,000,000, of which $400,000 remains uncollected at the end of the year (A/R balance). Taiga estimates that 4.5% will be uncollectible. If the Allowance for Doubtful Accounts had a credit balance of $16,000 before this adjustment, what is the journal entry Taiga should make to bring the balance in the Allowance account up to date?
Interest calculation. Harris borrowed $600,000 from the bank for 30 years. The money will be paid back at the end of the 30 years, but interest will be paid each year. The interest rate is 3.2% per year. (A) What is the amount of interest per year? (B) What is the total amount of interest on the entire loan?
Maturity value calculation. Manning borrowed $50,000 from the bank for 6 months. The interest rate is 8% per year. At the end of 6 months, the entire principal ($50,000) plus all interest will be paid back to the bank. What is the total maturity value of the loan?
Another maturity value calculation. Larry borrowed $100,000 from the bank for 50 days. The interest rate is 10%. All the principal plus interest (maturity value) will be paid at the end of the 50 days. How much will Larry pay? (round up to the nearest dollar)
Exchange A/R for N/R. Raya bought merchandise from Pantera. The total purchase was $10,000. The terms were 2/10, n/30. At the end of 30 days, Raya told Pantera she would not be able to pay right away, but would like to sign a Note to pay the loan in the future. What is the journal entry Pantera will make to convert the Accounts Receivable into a Notes Receivable? (Hint: Remember what the original entry looked like.)
Net Realizable Value. If total Accounts Receivable is $75,000 and the Allowance for Doubtful Accounts is $17,000, what is the NET amount of Accounts Receivable that will be reported on the Balance Sheet?
PLEASE ANSWER THIS QUESTION: Bad Debts Expense – (A) which financial statement does it appear on and (B) what type of expense account is it?
Explanation / Answer
Bad debts expense should be appear on Income statement/ Profit and loss statement.
Bad debts exp. Is generally treated as a Selling and distribution expense a/c or selling and adminstration expense a/c. Because it is directly related to Accounts receivables.