ACCT 220 Chapter Notes - Chapter 8: Financial Institution, Promissory Note, Accounts Receivable

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sangriawoodchuck313

7 Oct 2016

School

Bloomsburg University

Department

Accounting

Course

ACCT 220

Professor

Mark Law

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362): a current asset that is created by a sale of merchandise or the provision of a service on a credit basis. It represents the amount owed the seller by a customer. 364): an accounting procedure whereby the amount of bad debts expense is estimated and recorded in the period in which the related credit sales occur. Bad debts expense: the expense stemming from the inability of a business to collect an amount previously recorded as receivable. It is normally classified as a selling or administrative expense. 365): a contra-asset account with normal credit balance shown on the balance sheet as a deduction from accounts receivable to reflect the expected uncollectible amount of accounts receivable. 367): a procedure that determines the bad debts expense for the year by multiplying net credit sales by an estimated uncollectible percentage. 368): a procedure that uses an aging schedule to determine the year-end balance needed in the allowance for doubtful.

Related Questions

Could you do all incorrect ones
P9-2A (a-d)

Information related to Hermesch Company for 2008 is summarizedbelow.
Total credit sales $2,200,000
Accounts receivable at December 31 825,000
Bad debts written off 33,000

Correct.

What amount of bad debts expense will Hermesch Company report if ituses the direct writeoff method of accounting for bad debts?
$ 33000

Correct.

Assume that Hermesch Company estimates its bad debts expense to be2% of credit sales. What amount of bad debts expense will Hermeschrecord if it has an Allowance for Doubtful Accounts credit balanceof $4,000?
$ 44000

Incorrect.

Assume that Hermesch Company estimates its bad debts expense basedon 6% of accounts receivable. What amount of bad debts expense willHermesch record if it has an Allowance for Doubtful Accounts creditbalance of $3,000?
$

Incorrect.

Assume that Hermesch Company estimates its bad debts expense basedon 6% of accounts receivable. There is a $3,000 debit balance inAllowance for Doubtful Accounts. What amount of bad debts expensewill Hermesch record?
$

burgundypug746

Information related to Hermesch Company for 2012 is summarizedbelow.

Total credit sales $2,200,000
Accounts receivable at December 31 825,000
Bad debts written off 33,000

What amount of bad debts expense will Hermesch Company report if ituses the direct writeoff method of accounting for bad debts?
$ ______

Assume that Hermesch Company estimates its bad debts expense to be2% of credit sales. What amount of bad debts expense will Hermeschrecord if it has an Allowance for Doubtful Accounts credit balanceof $4,000?
$ ______

Assume that Hermesch Company estimates its bad debts expense basedon 6% of accounts receivable. What amount of bad debts expense willHermesch record if it has an Allowance for Doubtful Accounts creditbalance of $3,000?
$ ______

Assume the same facts as in the question above, except that thereis a $3,000 debit balance in Allowance for Doubtful Accounts. Whatamount of bad debts expense will Hermesch record?
$ ______

Problem 8-4A Here is information related to Splish Brothers Inc.for 2017. Total credit sales $1,580,000 Accounts receivable atDecember 31 790,000 Bad debts written off 39,500 (a) What amount ofbad debt expense will Splish Brothers Inc. report if it uses thedirect write-off method of accounting for bad debts? Bad debtsexpense $enter the bad debts expense in dollars assuming option a(b) Assume that Splish Brothers Inc. decides to estimate its baddebt expense based on 4% of accounts receivable. What amount of baddebt expense will the company record if Allowance for DoubtfulAccounts has a credit balance of $2,700? Bad debts expense $enterthe bad debts expense in dollars assuming option b (c) Assume thesame facts as in (b), except that there is a $1,000 debit balancein Allowance for Doubtful Accounts. What amount of bad debt expensewill Splish Brothers Inc. record? Bad debts expense $enter the baddebts expense in dollars assuming option c

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ACCT 220 Chapter Notes - Chapter 8: Financial Institution, Promissory Note, Accounts Receivable

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