CRP3 Q- Search in Document Home Insert Design Layout References Mailings Review
ID: 2591929 • Letter: C
Question
CRP3 Q- Search in Document Home Insert Design Layout References Mailings Review View Share AaBbCcDdE AaBbCcDdE AaBbCcDd AaBbCcDdEe aBbCcDdE AoBbCCOdEe Paste NormalNo Spacing He ng 1Heading 2 SubtitleSubtle Emph. Problem 11: The Gadzooks Chip Company offers credit terms to its customers. At the end of 2013, accounts receivable totaled S2,223.000. The allowance method is used to account for uncollectible accounts. The allowance for uncollectible accounts had a credit balance of $68,000 at the beginning of 2013 and $46,200 in receivables was written off during the year as uncollectible. No previously written off receivables were collected. The c debts by applying a percentage of 3% to accounts receivable at the end of the year. ompany estimates bad 10 1. Prepare journal entry to record the write-off of receivables. 2. Prepare journal entries to record the year-end adjusting entry for bad debt expense. Show your 3. How would accounts receivable be shown in the 2013 year-end balance sheet? Page 7 of 11 1916 Words English (US) Focus 113%Explanation / Answer
1 Allowance for Doubtful accounts 46200 Accounts Receivable 46200 2 Bad debts expense 44890 =(2223000*3%)-(68000-46200) Allowance for Doubtful accounts 44890 3 Balance sheet(Partial) Current Assets: Accounts receivable 2223000 Less: Allowance for Doubtful accounts 66690 Net Accounts receivable 2156310