Assume that Rahma LLC sold OMR 2000 goods to Al Karama LLC on credit. After sales, based on the financial position of the purchaser, Rahma LLC anticipated OMR 400 as uncollectable accounts receivables. From the following given options, identify journal entry for writing off OMR400 balance as uncollectible on December 31st by following direct write-off method. a. Dr Bad debt expenses A/c OMR 400 and Cr Allowance for doubtful accounts OMR 400 b. Dr Bad debt expenses A/C MR 400 and Cr Accounts receivables A/C OMR 400. C. None of the given options d. Dr Accounts receivables A/C OMR 400 and Cr Bad debt expenses A/C OMR 400

Q: Abbott Company uses the allowance method of accounting for uncollectible accounts.  Abbott estimates…

A: Unadjusted balance of Allowance for doubtful accounts = $2,400 - $1,800 = $600   Bad debt expense =…

Q: any reportS Cash Sales Credit Sales BD525,500 BD620,500 In addition, its unadjusted trial balance…

A: Bad Debt Expense = ( Ending Accounts receivable x 4% ) - Beginning Allowance for doubtful accounts

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A: >Bad Debt Expense is recorded using two methods: #1: Direct write off method: Expense is…

Q: Metlock Inc.’s unadjusted trial balance at December 31, 2020, included the following accounts:…

A: The allowance for doubtful accounts is created to record the estimated bad debt expenses.

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A: The financial accounting term allowance method refers to the process of an uncollectible account…

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A: Scenario 1: 1. Calculate the estimated uncollectible amount as follows: The total uncollectible…

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A: Bad debts :— Loans & any outstanding balance which is Uncollectible by the Company and…

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A: The bad debt expense = 2% of outstanding accounts receivables Bad debt expense  for year 1 = 2% (…

Q: Black Company provides for bad debts expense at the rate of 2% of credit sales. The following dat…

A: Solution 1: Bad debts expense for the year = Credit sales * 2% = 1,750,000*2% = 35,000 Allowance for…

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Q: The ledger of Sheffield Corp. at the end of the current year shows Accounts Receivable $80,300;…

A: If bad debt expense is 11% of accounts receivable = $80300×11% =$8833

Q: On 1 January 2020, Nothing Else Bhd (NEB) had Accounts Receivable RM278,000, Notes Receivable…

A: Journal is a account book that keeps the record of day to day. transactions in business.

Q: The following accounts were taken from Splish Brothers Inc.’s unadjusted trial balance at December…

A: Account receivable means the amount due from customer whom we sold the goods on credit. Allowance…

Q: The information listed below was abstractcd from the records of the Emily Berhad: RM Accounts…

A: Allowance for Doubtful accounts is a contra asset account and is subtracted from the accounts…

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A: Sales: Sales include a number of goods and services sold by the organization during their accounting…

Q: Using the information provided for United Corp, and answer the questions that follow: Ohited Corp.…

A: Solution: Ending balance of gross receivables = Beginning accounts receivables + Net sales -…

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A: Uncollectibles=Accounts receivables×5%=OMR 500,000×5%=OMR 25,000

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A: Journal Entry: Journal entry is the act of keeping records of transactions in an accounting journal.…

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A: Allowance for doubtful debts=Credit sale×2%=$105,000×2%=$2,100

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A: Allowance for doubtful debts is considered as the contra asset item i.e used to decrease the value…

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A: As the questions asked have more than 1 question, the first question is answered. If you want the…

Q: The following accounts were abstracted from Mana Company's unadjusted trial balance on December 31,…

A: Estimated uncollectible accounts = accounts receivable x 3% = 3000000*3% = 90,000

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A: As posted multiple questions we are answering only one question as per our guidelines policy kindly…

Q: Ivanhoe Company uses the allowance method in accounting for uncollectible accounts. Past experience…

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Q: The following balances have been taken from the unadjusted trial balance of a trading organization…

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A: Under the percentage of credit sales method, bad debt expenses would be based on total sales

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Q: The following are the selected accounts taken from the unadjusted trial balance of Mc Calma: Dr. Cr.…

A: “Since you have posted multiple questions, we will solve the first question for you. To get the…

Q: From inception of operations, Comprehensive Company provided for uncollectible accounts expense…

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A: An adjusting journal entry is an entry in a company's general ledger that occurs at the end of an…

Q: Larkspur Inc.’s unadjusted trial balance at December 31, 2020, included the following accounts:…

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Q: Sky Company provided the following information at year-end: 2020 2019 Accounts receivable Allowance…

A: Sales: Sales include a number of goods and services sold by the organization during their accounting…

Q: The ledger of Metlock, Inc. at the end of the current year shows Accounts Receivable $85,700; Credit…

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Q: Normaslına Taib sells goods on credit and bas prepared the following information for the last 3…

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Q: The following information relates to Excellent Inc. for the year 2021: Sales for 2021 (90% on…

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Q: From inception of operations, Comprehensive Company provided for the uncollectible account expense…

A: Hi student Since there are multiple questions, we will answer only first question.

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Q: The following information is available for AVS-CVN Company: Credit sales during 2019 Accounts…

A: 22) The amount to be charged as bad debt expense is shown below: Opening balance of allowance…

Bad Debts

At the end of the accounting period, a financial statement is prepared by every company, then at that time while preparing the financial statement, the company determines among its total receivable amount how much portion of receivables is collected by the company during that accounting period.  

Accounts Receivable

The word “account receivable” means the payment is yet to be made for the work that is already done. Generally, each and every business sells its goods and services either in cash or in credit. So, when the goods are sold on credit account receivable arise which means the company is going to get the payment from its customer to whom the goods are sold on credit. Usually, the credit period may be for a very short period of time and in some rare cases it takes a year.