Fan-Tastic Sports Gear Inc. recorded $2,900,000 of sales last year and projects sales to increase by $350,000 in the current year. Last year, 80% of sales were on account, with övel300 customer accounts. Bad debt expense was $26, 187.1. Assume that Fan-Tastic Sports Gear Inc. used the allowance method last year, and the allowance account at the end of the year had a debit balance of $2.240. The companyestimated uncollectible accounts expense using the percent of credit sales method and expected 0.75% of credit sales to be uncollectible. What is the amount of the adjusting entryto provide for doubtful accounts on December 317 Round all computations to the nearest dollar. S2. How much higher (lower) would Fan-Tastic Sports Gear Inc's net income have been under the allowance method assumption previously shown in (1) than under the direct write offmethod? (Enter "o it there is no change.) Higher by SBalance sheet3. Usina the allowance method, the net realizable value of the receivables would appear on which financial statement?

In this question, we have to do adjusting entry in allowance calculation. Under direct method, bad…

B00 customer accounts. Bad debt expense was $26,187. 1. Assume that Fan-Tastic Sports Gear Inc., used the allowance method last year, and estimated uncollectible accounts expense using the percent of credit sales method to provide for doubtful accounts on December 317? Round all computations to the ne 2. How much higher (lower) would Fan-Tastic Sports Gear Inc 's net inoome have bee

B00 customer accounts. Bad debt expense was $26,187. 1. Assume that Fan-Tastic Sports Gear Inc., used the allowance method last year, and estimated uncollectible accounts expense using the percent of credit sales method to provide for doubtful accounts on December 317? Round all computations to the ne 2. How much higher (lower) would Fan-Tastic Sports Gear Inc 's net inoome have bee

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Fan-Tastic Sports Gear Inc. recorded $3,000,000 of sales last year and projects sales to increase by $350,000 in the current year. Last year, 80% of sales were on account, with over 300 customer accounts. Bad debt expense was $26,187. 1. Assume that Fan-Tastic Sports Gear Inc. used the allowance method last year, and the allowance account at the end of the year had a debit balance of $2,240. The company estimated uncollectible accounts expense using the percent of credit sales method and expected 0.75% of credit sales to be uncollectible. What is the amount of the adjusting entry to provide for doubtful accounts on December 31? Round all computations to the nearest dollar. $
Indiana Jones Adventure Tours has the following year-end data; $775,000 in credit sales, $250,000 in accounts receivable, and a $10,000 debit balance in its allowance for doubtful accounts account. It estimates 6% of its accounts receivable will be uncollectible. During the year, the company writes off a $3,000 uncollectible account. What is the company’s bad debt expense for the year? Group of answer choices $15,000 $28,000 $18,000 $25,000
Mr. Husker’s Tuxedos Corporation ended the year with an average collection period of 36 days. The firm’s credit sales were $56.5 million. What is the year-end balance in accounts receivable for Mr. Husker’s Tuxedos? Note: Enter your answer in dollars not in millions. Use 365 days a year. Mandesa, Incorporated has current liabilities of $8,300,000, current ratio of 2.0 times, inventory turnover of 12 times, average collection period of 33 days, and credit sales of $64,300,000. Calculate the value of cash and marketable securities.
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During Burns Company's first year of operations, credit sales totaled $180,000 and collections on credit sales totaled $125,000. Burns estimates that bad debt losses will be 1.0% of credit sales. By year-end, Burns had written off $500 of specific accounts as uncollectible. Required: 1. Prepare all appropriate journal entries relative to uncollectible accounts and bad debt expense. 2. Show the year-end balance sheet presentation for accounts receivable. Complete this question by entering your answers in the tabs below. Required 1 Required 2 re all appropriate journal entries relative to uncollectible accounts and bad debt expense. Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field. View transaction list Journal entry worksheet 1 2 Record the entry to write-off specific accounts. Note: Enter debits before credits. Transaction 1 Record entry General Journal Clear entry Debit Credit View general journal
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At the beginning of the current year, Jamin Company had a credit balance of P260,000 in the allowance for uncollectible accounts. Based on the past experience, 2% of credit sales would be uncollectible. During the current year, the entity wrote off P325,000 of uncollectible accounts. Credit sales for the year totaled P9,000,000. What Is the uncollectible accounts expense for the year?
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