Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. question 2 (6 points) hector enterprises offers tr

Question 2 (6 points) Hector Enterprises offers trade accounts receivable to its customers, though man...

90.2K

Verified Solution

Question

Accounting

image

image

Question 2 (6 points) Hector Enterprises offers trade accounts receivable to its customers, though man prefer to pay using other forms of payment. Year-end is approaching at the end August, and you need to make the adjusting entry to properly account for bad de Use the information below to determine the appropriate entry: Total Sales Cash sales Debit card sales Sales on Account: $ 1,173,942 $ 540,013 $ 246,528 ??? ho Bad Debt % on sales on account 4% Accounts Receivable ending balance $ Allowance for Doubtful Accounts opening balance $ Accounts written off this period $ 21,455 DR 4,004 CR 722 Aging Accounts Receivable Current 30-60 days 60-90 days Over 90 days Bad Debt % 35% 2% 34% 5% 19% 7% 12% 64% Aging Accounts Receivable Current 30-60 days 60-90 days Over 90 days Bad Debt % 35% 2% 34% 5% 19% 7% 12% 64% 100% A) Determine the ending balance of the Allowance For Doubtful Accounts, assuming the Income Statement Approach. Prepare the adjusting journal entry for the company. Show all calculations. B) What would be the net Accounts Receivable on the Balance Sheet after preparing your journal entry from A)

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