Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. need help with b)apparently you debit bad debit ex

need help with B)apparently you debit bad debit expense 32,000 and credit allowance for doubtful...

80.2K

Verified Solution

Question

Accounting

need help with B)
apparently you debit bad debit expense 32,000 and credit allowance for doubtful accounts 32,000. But why 32,000?
image
Problem 3 The December 31, 2016 balance sheet of the Cummings Company had Accounts Receivable of $550,000 and a credit balance in Allowance for Doubtful Accounts of $29,000. During 2017, the following transactions occurred: sales on account $1,540,000; sales returns and allowances, $110,000; collections from customers, $1,400,000; accounts written off $40,000; and previously written off accounts of $6,000 were collected. Required: (6 Marks) Journalize the 2017 transactions b) a) If the company uses the percentage of receivables approach to estimate bad debt expense and determines that uncollectible accounts are expected to be 5% of accounts receivable, what is the adjusting entry at December 31, 2017

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students