Review Question The following information is related to December 31, 2013 balances. Accounts receivable$2,100,000 Allowance...
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Review Question The following information is related to December 31, 2013 balances. Accounts receivable$2,100,000 Allowance for doubtful accounts (credit) (180,000) Net (cash) realizable value $1,920,000 During 2014 sales on account were $580,000 and collections on account were $344,000. Also during 2014 the company wrote off $32,000 in uncollectible accounts. An analysis of outstanding receivable accounts at year end indicated t bad debts should be estimated at $216,000. Bad debt expense for 2014 is b. C. d. 68,000. $ 36,000. $216,000. $ 4,000. Review Question Kinsler Company uses the percentage-of-receivables method for recording bad debt expense. The Accounts Receivable balance is $200,000 and credit sales are $1,000,000. Management estimates that 6% of accounts receivable will be uncollectible. What adjusting entry will Kinsler Company make if the Allowance for Doubtful Accounts has a credit balance of $2,000 before adjustment? a. Bad Debt Expense 14,000 Allowance for Doubtful Accounts 14,000 b. Bad Debt Expense 12,000 Allowance for Doubtful Accounts 12,000 Bad Debt Expense 10,000 Allowance for Doubtful Accounts 10,000 d. Bad Debt Expense 8,000 Accounts Receivable 8,000
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