Business, 17.03.2020 02:03 Joosee4075

Knelling Company reported a balance in Accounts Receivable of $50,000 and a credit balance of $3,000 in the Allowance for Doubtful Accounts. The company’s aging of accounts receivable determined $12,000 to be uncollectible. Prepare the end-of-period adjusting entry to record bad debt expense.

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Answer from: elias37

Dr Bad Debts expense $12000

Cr Allowance for doubtful debts $12000

Explanation:

Allowance for doubtful debt will increase by $12000, Allowance for doubtful debts account will credited by $12000 to recognise the increase in provision/allowance for doubtful debts. We process the following journal entry to record this increase in uncollectible debts

Dr Bad Debts expense $12000

Cr Allowance for doubtful debts $12000

Answer from: jess7kids

Dr Bad debt expense 9,000

Cr Allowance for uncollectible accounts 9,000

Explanation:

If the estimated bad debt for the year is $12,000, and the allowance for doubtful accounts has a credit balance of $3,000, you increase the allowance account until its balance is $12,000.

$3,000 + X = $12,000X = $9,000

The aging of accounts receivable estimates bad debts depending on outstanding customer invoices that are older than a specific threshold, e.g. all uncollected accounts which are older than 6 months are considered bad debt.

Answer from: Quest

Technicians are. they a lot

Answer from: Quest

1 all nations face the problem of scarcity because there are limited resources and unlimited wants. nations do not have enough factors of production to produce everything that their population wants. entrepreneurial resources initiate businesses to make new goods and services; labor resources produce goods and services.

2 there are four factors of production: natural resources, labor resources, capital resources, and entrepreneurial resources. natural resources are raw materials from nature that are used to produce goods. trees, water, and grains are natural resources. some natural resources, such as wheat and cattle, are renewable

3 wants

things that you do not need to have in order to survive, but would like to have

needs

things that you must have in order to survive

goods

physical products

services

tasks that a business perform for customers

resources

items that people can use to make or obtain what they need or want

determine

to settle or decide by choice of alternatives or possiblities

4 i really dont know

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Knelling Company reported a balance in Accounts Receivable of $50,000 and a credit balance of $3,000...

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