Submitting more applications increases your chances of landing a job.
Here’s how busy the average job seeker was last month:
Opportunities viewed
Applications submitted
Keep exploring and applying to maximize your chances!
Looking for employers with a proven track record of hiring women?
Click here to explore opportunities now!You are invited to participate in a survey designed to help researchers understand how best to match workers to the types of jobs they are searching for
Would You Be Likely to Participate?
If selected, we will contact you via email with further instructions and details about your participation.
You will receive a $7 payout for answering the survey.
Register now or log in to join your professional community.
Debit Credit
Accounts receivable $1,000,000
Allowance for uncollectible accounts 8,000
Net credit sales $3,000,000
XYZ estimates that3% of the gross accounts receivable will become uncollectible. After adjustment at December31, the allowance for uncollectible accounts should have a credit balance of
A. $90,000
B. $82,000
C. $38,000
D. $30,000
Answer option C >>>>>>>>>>>>>>>>>> $38,000
uncollectible accounts should have estimate -3%×1,000,000 = $30,000.
D. 30,000
When estimating allowance for doubtful accounts using % of accounts receivable, answer would become the ending balance of the allowance for doubtful account. Unlike when using % of credit sales where the answer is the bad debts charged during the period, which will be adjusted to the beginning balance and the accounts written off to get the ending balance of allowance for bad debts.
correct answer is( D) 30000
The answer should be A which is $90,000
Given
A/R1000,000
Allowance for doubtful account before adjustment8,000
Est. allowance for doubtful account percentage3% of gross A/R
Then the estimated allowance for doubtful account is1000,000 *3% =30,000
Amount to be adjusted = (30,000 -8,000 =22,000
Adjusting entry
Doubtful account expense 22,000
Allowance for doubtful account 22,000
So, choice D is the answer for this question
Percentage of accounts receivable method is called balance sheet approach when we use it . The allowance for uncollectible account should equal the percentage of the equation .
the allowance = balance of accounts receivable *3% = $30000
so the entry is : debit / bad debts expense22000 and credit / allowance for uncollectible account $22000 .
according to GAAP
Answer D is the right answer
