Determine the amount of accounts receivable written off

Assignment Help Accounting Basics
Reference no: EM133119514

Question - Ervin Company uses the allowance method to account for uncollectible accounts receivable. Bad debt expense is established as a percentage of credit sales. For 2021, net credit sales totaled $4,800,000, and the estimated bad debt percentage is 1.80%. No previously written-off accounts receivable were reinstated during 2021. The allowance for uncollectible accounts had a credit balance of $45,000 at the beginning of 2021 and $41,500, after adjusting entries, at the end of 2021.

Required -

1. What is bad debt expense for 2021 as a percent of net credit sales?

2. Assume Ervin makes no other adjustment of bad debt expense during 2021. Determine the amount of accounts receivable written off during 2021.

3. If the company uses the direct write-off method, what would bad debt expense be for 2021?

Reference no: EM133119514

Questions Cloud

Envision imagined community : How would you envision an imagined community? What values from W.E.B. Dubois' ideas about race can promote tolerance in today's local and global village?
Calculate the number of shares : You have $1,000,000 to invest and create a portfolio invested 65% in BBY, 15% in GD, and 20% in STT. Assume that dividend income is received at the end of the m
What yield to maturity is the bind offering : A 6.50% coupon bond with 18 years left to maturity is offered for sale at $1.035.25. What yield to maturity [interest rate] is the bind offering?
Detailed description of each technology : A detailed description of each technology and how it enhances science or health teaching and learning.
Determine the amount of accounts receivable written off : Assume Ervin makes no other adjustment of bad debt expense during 2021. Determine the amount of accounts receivable written off during 2021
Implement a system suitable for use by a cleaning company : Implement a system suitable for use by a cleaning company. The company will employ a number of cleaners who will be assigned jobs at different locations
Different psychological theories : We have been looking at different psychological theories and the way we can use them to better examine social media.
Prepare the long-term investments : Land (held for investment) $39,000, and Notes Receivable (long-term) $42,000. Prepare the long-term investments section of the balance sheet
Immediate professional development : Explain how you will provide immediate professional development to teachers who must implement this program.

Reviews

Write a Review

Accounting Basics Questions & Answers

  What would be the effect on lybrand income

ybrand Company is a leading manufacturer of sunglasses. What would be the effect on Lybrand's income if the special order were accepted

  Foreign exchange rate and interest rate parity

Should Interest Rate Parity Prevent MNCs from Investing in Foreign Currencies?

  Calculate the Coronado assets on December

Coronado Company compiled the following financial information as of December 31, 2018: Calculate the Coronado's assets on December 31, 2018

  Construct a bond amortization table

Construct a bond amortization table for this problem to indicate the amount of interest expense and discount amortization at each May 31. Include only the first five years. Make sure all columns and rows are properly labeled.

  Prepare journal entries for the foreign currency option

Prepare journal entries for the foreign currency option and firm commitment. What is the impact on net income over the two accounting periods

  Prepare an income statement for the year 2011

The CPA firm you are working for has just taken on a new client. The firm has just learned that the new client will soon be on the cover of a well-known magazine, the firm is very concerned the work they produce is outstanding in every aspect. Tha..

  What is the current value

If investors require a return of 10.2% p.a. on this stock, what is the current value? Value in there years? In 15 years

  Stuchlik catering uses two measures of activity jobs and

stuchlik catering uses two measures of activity jobs and meals in the cost formulas in its flexible budgets. the cost

  Defined benefit pension plan

TRM Corporation established a defined benefit pension plan in Year 5. In Year 8 the following information is available. Service cost = $45,000. Interest cost = $60,000.

  what annual rate of return did Bruce earn on his investment

Today, the investment is worth $3,550. If interest is compounded annually, what annual rate of return did Bruce earn on his investment

  Determine the Fair Value of the leased asset

Fitbit Ltd has leased a machine on the following terms: Unguaranteed residual value $40,000. Determine the Fair Value (rounded off) of the leased asset

  Prepare the general journal entry for the required end

Use this information to prepare the General Journal entry (without explanation) for the required end of the month adjustment

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd