Basis for determining bad debt expense

Assignment Help Financial Accounting

Reference no: EM13752051

ABC at the end of the fiscal 2012 year has the following information:

Credit Sales, $3,500,000 Sales Returns & Allowances $35,000 Accounts Receivable $200,000 and Allowance for Doubtful Accounts with a debit of $3,500.

1- Prepare the general journal entry to record the end of the year adjusting entry if ABC uses 0.5% of Net Credit Sales as the basis for determining Bad Debt Expense.

2- Prepare the general journal entry to record the end of the year adjusting entry if ABC uses 5% of Accounts Receivable as the basis for determining Bad Debt Expense.

Reference no: EM13752051

Questions Cloud

Organizational structure and strategic leadership : Discuss the following questions in relation to organizational structure and strategic leadership

What is the amount of their total tax liability : Jake and Christina are married and file a joint return for 2014 with taxable income of $100,000 and tax preferences and adjustments of $20,000 for AMT purposes. Their regular tax liability is $16,713. What is the amount of their total tax liability?

General journal entry for employers payroll tax liability : Prepare the general journal entry for the employer's payroll liability. Prepare the general journal entry for the employer's payroll tax liability. Prepare the general journal entry to liquidate the liabilities accrued in parts (a) and (b) on March 3..

Rewrite the code using a select case block : Rewrite the code using a Select Case block and Determine the output displayed in the text box when the button is clicked

Basis for determining bad debt expense : Credit Sales, $3,500,000 Sales Returns & Allowances $35,000 Accounts Receivable $200,000 and Allowance for Doubtful Accounts with a debit of $3,500. Prepare the general journal entry to record the end of the year adjusting entry if ABC uses 0.5% of N..

Describe the steps in an implementation plan : Describe the steps in an implementation plan. Identify possible project issues

Correcting entries and end-of-the period adjusting entries : Explain what type of accounts need: correcting entries, end-of-the period adjusting entries, adjusted trial balance, classified balance sheet, and the closing entries. ie. cash, accumulated depreciation, retained earnings, salaries, etc.

Betty and charles were partners. : Albert, Betty and Charles were partners. The following circumstances applied:(a) CapitalAccording to the partnership agreement, Albert and Betty each contributed $20,000. Charles contributed no capital.(b) Advances

Complete journal entries : Complete journal entries: Jan. 1 Accepted Kent's 90 days, 10% note, as settlement of an outstanding. Received payment in full from Sam's. for outstanding note & interest

User Account

All Pages