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Answers of Doubtful Accounts Assignment
Answers of Doubtful Accounts Assignment
Vilbar BSA – 1A
Required:
Prepare adjusting entry to provide for doubtful accounts under each of the following
independent assumptions:
a. Past experience indicates that 75% of all sales are credit sales and that an average
2% of credit sales may prove uncollectible.
c. An analysis of the aging of trade receivables indicates that accounts receivable in the
amount of P80,000 may prove uncollectible.
d. The policy is to maintain an allowance for doubtful accounts equal to 10% of the
outstanding accounts receivable.
Required:
a. Prepare journal entries to record the transactions.
2. Cash 1,000,000
Accounts receivable 1,000,000
3. Cash 1,455,000
Sales discount 45,000
Accounts receivable 1,500,000
5. Cash 470,000
Sales 470,000
Cash 5,000
Accounts receivable 5,000
b. Prepare the adjustment for doubtful accounts if the entity provides for doubtful
accounts equal to 2% of net credit sales.
Required:
a. Prepare journal entries to record the transactions.
Cash 4,410,000
Sales discount 90,000
Accounts receivable 4,500,000
Cash 2,475,000
Sales discount 25,000
Accounts receivable 2,500,000
Cash 15,000
Accounts receivable 15,000
Cash 1,100,000
Accounts receivable 1,100,000
Required:
1. What is the required allowance for doubtful accounts at year-end?
2. How much would be the doubtful accounts expense for the current year?
3. What is the adjusting entry for the doubtful accounts expense for the current year?