for doubtful 10940 debit tobe 4 of credit sales SolutionAnsw

for doubtful 10,940 debit tobe 4% of credit sales

Solution

Answers

Working;

A

Total Credit Sale

$                           31,49,000.00

B = A x 4%

Bad Debt expense at 4%

$                              1,25,960.00

C [given]

Allowance for Doubtful Account balance - (Debit)/Credit

$                               (10,940.00)

D = B + C

Adjusted Allowance for Doubtful Account balance - (Debit) Credit

$                              1,15,020.00

Transaction

Accounts title

Debit

Credit

a

Bad Debt Expense

$                              1,25,960.00

Allowance for Doubtful Account

$         1,25,960.00

(bad debt expense recorded0

Balance Sheet (Partial)

Current Assets:

Accounts Receivables

$                              9,54,147.00

Less: Allowance for Doubtful Accounts

$                              1,15,020.00

Accounts receivables, net

$         8,39,127.00

Working:

1

Total Cash Sale

$                           16,54,970.00

2

Total Credit Sale

$                           31,49,000.00

A=1+2

Total Sales

$                           48,03,970.00

B = A x 4%

Bad Debt expense at 3%

$                              1,44,119.10

C [given]

Allowance for Doubtful Account balance - (Debit)/Credit

$                               (10,940.00)

D = B + C

Adjusted Allowance for Doubtful Account balance - (Debit) Credit

$                              1,33,179.10

Answers:

Transaction

Accounts title

Debit

Credit

b

Bad Debt Expense

$                              1,44,119.10

Allowance for Doubtful Account

$         1,44,119.10

(bad debt expense recorded0

Balance Sheet (Partial)

Current Assets:

Accounts Receivables

$                              9,54,147.00

Less: Allowance for Doubtful Accounts

$                              1,33,179.10

Accounts receivables, net

$         8,20,967.90

Working:

A

Accounts receivables balance

$                              9,54,147.00

B = A x 7%

Adjusted Allowance for Doubtful Account balance - (Debit) Credit, required

$                                 66,790.29

C [given]

Unadjusted Allowance for Doubtful Account balance - (Debit)/Credit existing

$                               (10,940.00)

D = B - C

Bad Debt Expense [66790.29 – ( - 10940)]

$                                 77,730.29

Answers:

Transaction

Accounts title

Debit

Credit

c

Bad Debt Expense

$                                 77,730.29

Allowance for Doubtful Account

$             77,730.29

(bad debt expense recorded0

Balance Sheet (Partial)

Current Assets:

Accounts Receivables

$                              9,54,147.00

Less: Allowance for Doubtful Accounts

$                                 66,790.29

Accounts receivables, net

$         8,87,356.71

A	Total Credit Sale	$                           31,49,000.00
B = A x 4%	Bad Debt expense at 4%	$                              1,25,960.00
C [given]	Allowance for Doubtful Account balance - (Debit)/Credit	$                               (10,940.00)
D = B + C	Adjusted Allowance for Doubtful Account balance - (Debit) Credit	$                              1,15,020.00