Purchase Solution

Bad debts

Not what you're looking for?

Ask Custom Question

The trial balance before adjustment of Estefan Inc. shows the following balances

Accounts Receivable 80,000 debit
Allowance for Doubtful Accounts 1,750 debit
Sales( all on credit) 580,000 credit

Give the entry for estimated bad debts assuming that the allowance is to provide for doubtful accounts on the basis of (a) 4% of gross accounts receivable and (b) 1% of net sales.

Purchase this Solution
Solution Summary

The solution explains how to compute bad debts and prepare the journal entries

Purchase this Solution
Free BrainMass Quizzes
Employee Orientation

Test your knowledge of employee orientation with this fun and informative quiz. This quiz is meant for beginner and advanced students as well as professionals already working in the HR field.

Managing the Older Worker

This quiz will let you know some of the basics of dealing with older workers. This is increasingly important for managers and human resource workers as many countries are facing an increase in older people in the workforce

Operations Management

This quiz tests a student's knowledge about Operations Management

Basics of corporate finance

These questions will test you on your knowledge of finance.

Understanding the Accounting Equation

These 10 questions help a new student of accounting to understand the basic premise of accounting and how it is applied to the business world.

View More Free Quizzes
Related BrainMass Solutions

  • Computing Bad Debts Expense

    accounting for bad debts?

  • Accounting for Bad Debts

    Bad debts written off : 66,000 a) What amount of bad debts expense will Hamilton Company report if it uses the direct write-off method of accounting for bad debts?

  • Accounting for Bad Debts issue

    214052 Accounting for Bad Debts issue Here's the question: as of January 2009, the balance in Company A's Allowance for Bad Debts account was 9,720. During the year, a total of 23,900 of delinquent receivables was written off as bad debt.

  • Allowance for bad debt expense

    Monro's bad debt expense per books and its deduction for bad debts is $69,650 B. Monro's bad debt expense per books and its deduction for bad debts is $88,500 C.

  • Accounting for Receivables and Bad Debts

    Total credit sales $2,200,000 Accounts receivable at December 31` 825,000 Bad debts written off 33,000 Instructions (a) What amount of bad debts expense will Hermesch Company report if it uses the direct write-off method of accounting for bad debts

  • Essential Features of the Allowance Method of Accounting

    Following entry is recorded Date Details Debit Credit Dec 31 Bad Debts Expense $2000 Accounts Receivable $2000 (To record Bad Debts expense by Allowance method as percentage of net sales) When actual bad debts (Say $500) are reported

  • Allowance for Doubtful Debts for Holland Company (Hermesch Company)

    bad debts?

  • Journal entry for bad debt expense

    In this approach bad debts are estimated as certain percentage of net sales based on past experience. Bad debts were estimated at10% of all credit sales.

  • Memorandums

    DETERMINING BAD DEBTS EXPENSE Bad debts expense represents the estimated amount of the year's sales that will become uncollectible.

  • Journal Entries to Record Allowance for Doubtful Accounts

    Bad Debts Expense should be Bad Debts Expense = ($840,000-$28,000) x 1% = $8,120 b-2) Bad Debts Expense = ($110,000 x 10%) - $2,100 = $8,900 c-1) Bad Debts Expense = ($840,000 - $28,000) x 0.75% = $6,090 c-2) Bad Debts Expense

View More Related Solutions