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Chap009 Solution Manual(1)

Dec 31 bad debts expense 4,420 allowance for doubtful

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Unformatted text preview: Dec. 31 Bad Debts Expense........................................ 4,420 Allowance for Doubtful Accounts............ 4,420 9-9 Chapter 09 - Accounting for Receivables To record estimated bad debts. * * Unadjusted balance............................ $ 400 debit Estimated balance.............................. 4,020 credit Required adjustment.......................... $4,420 credit 9-10 Chapter 09 - Accounting for Receivables Exercise 9-7 (25 minutes) a. Computation of the estimated balance of the allowance for uncollectibles: $190,000 x 0.035 = $6,650 credit b. Dec. 31 Bad Debts Expense........................................ 6,350 Allowance for Doubtful Accounts............ 6,350 To record estimated bad debts. * * Unadjusted balance........................... $ 300 credit Estimated balance............................. 6,650 credit Required adjustment......................... $6,350 credit c. Dec. 31 Bad Debts Expense........................................ 6,850 Allowance for Doubtful Accounts............ 6,850 To record estimated bad debts. * * Unadjusted balance........................... $ 200 debit Estimated balance............................. 6,650 credit Required adjustment......................... $6,850 credit Exercise 9-8 (20 minutes) Feb. 1 Allowance for Doubtful Accounts....................... 1,900 Accounts Receivable—Oxford Co................ 400 Accounts Receivable—Brookes Co.............. 1,500 To write off specific accounts. June 5 Accounts Receivable—Oxford............................ 400 Allowance for Doubtful Accounts................. 400 To reinstate an account. June 5 Cash..................................................................... 400 Accounts Receivable—Oxford...................... 400 To record cash received on account. 9-11 Chapter 09 - Accounting for Receivables Exercise 9-9 (25 minutes) a. Expense is 1.5% of credit sales Dec. 31 Bad Debts Expense........................................... 13,500 Allowance for Doubtful Accounts.............. 13,500 To record estimated bad debts [$900,000 x .015]. b. Expense is 0.5% of total sales Dec. 31 Bad Debts Expense........................................... 10,500 Allowance for Doubtful Accounts.............. 10,500 To record estimated bad debts [($900,000 + $1,200,000) x .005]. c. Allowance is 6% of accounts receivable Dec. 31 Bad Debts Expense........................................... 14,700 Allowance for Doubtful Accounts.............. 14,700 To record estimated bad debts. * * Unadjusted balance.................................... $ 3,000 debit . Estimated balance ($195,000 x 6%)........... 11,700 credit Required adjustment.................................. $14,700 credit 9-12 Chapter 09 - Accounting for Receivables Exercise 9-10 (20 minutes) July 4 Accounts Receivable...................................... 6,295 Sales.......................................................... 6,295 To record sales on credit....
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Dec 31 Bad Debts Expense 4,420 Allowance for Doubtful...

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