Ask Question
BusinessBusiness
9 April, 14:59

CC Sunglasses started operations in 2017. During the year, there was $10,000 in sales, $8,000 was collected, therefore $2,000 remaining AR. On December 31, 2017, CC Sunglasses Co. estimates 7% of receivables may not be collected.

The journal entry to record the 2017 estimate for bad debts is ___.

+2
Answers (1)
  1. 9 April, 15:19
    0
    Answer: The journal entries to record the 2017 estimate for bad debts is Debit Bad debt expense $140; Credit Allowance for doubtful accounts $140.

    Explanation: Given that the amount in accounts receivable is $2,000, after the collections, CC Sunglasses Co. estimates that 7% of this amount may not be collected. Therefore, 7% of $2,000 is $140. And the accounting entries to recognize this bad debt expense is as provided in the Answer section above. However, the net balance in the accounts receivable would be $1,860 ($2,000 - $140), to show the realizable value as at December 31, 2017.
Know the Answer?
Not Sure About the Answer?
Find an answer to your question 👍 “CC Sunglasses started operations in 2017. During the year, there was $10,000 in sales, $8,000 was collected, therefore $2,000 remaining AR. ...” in 📗 Business if the answers seem to be not correct or there’s no answer. Try a smart search to find answers to similar questions.
Search for Other Answers
You Might be Interested in
Pamela applies for a life insurance policy with forever young insurance company. when completing the application form about past surgeries, pamela forgot about a past outpatient surgery when she had an infected hang-nail removed and her toe treated.
Answers (1)
Assume that when the price of a good increases from $45 to $55, the quantity demanded of the good decreases from 275 to 225. What is the price elasticity of demand
Answers (1)
State whether each situation is a prepaid expense (PE), unearned revenue (UR), accrued revenue (AR) or an accrued expense (AE). 1. Unrecorded interest on savings bonds is $245. 2.
No Answers
Draper Company sold $200,000 of extended warranties in 20X8. The warranty represents a separate performance obligation and covers any repairs needed over the next four years. The warranty takes effect on January 1, 20X9.
Answers (1)
The following events pertain to Jasper Corporation:May 1 Jasper purchased office supplies of $3,000 on account. May 5 The office supplies were shipped to Jasper. May 8 Jasper used these office supplies for a one-time event.
Answers (1)
New Questions in Business
Consider this argument: "The kidnappers have taken eight people hostage and are holding them at a farmhouse just outside town. If the SWAT team assaults the farmhouse, the hostages could be killed.
Answers (1)
Rent seeking is an attempt to A. use the government for individual benefit at the expense of others. Regulatory capture is an example of this, where a regulatory agency makes decisions benefiting the firm being regulated. B.
Answers (1)
An Insurance company is a business in which it pays to the company if there is a loss, damage, treatments or injury for the payment of premium amount. It calculates the risks that has occurred and pays to compensate the premium amount.
Answers (1)
Pool Line is the manufacturer of a pool cleaning system that has been called by the pool construction industry, "the miracle we have waited a lifetime for." The cleaning system is very effective and recommended by all consumer magazines.
Answers (1)
Use the following example to answer the following questions: Imagine that Stella deposits $25,000 in currency (which she had been storing in her closet) into her checking account at the bank.
Answers (1)
Home » Business » CC Sunglasses started operations in 2017. During the year, there was $10,000 in sales, $8,000 was collected, therefore $2,000 remaining AR. On December 31, 2017, CC Sunglasses Co. estimates 7% of receivables may not be collected.
Sign Up Forgot Password?