Consider the Following INDEPENDENT Situations for Tommy Company

question 131

Essay

Consider the following INDEPENDENT situations for Tommy Company:
a. The Allowance for Uncollectible Accounts has a $1,200 credit balance prior to adjustment. Net credit sales during the year are $830,000 and 2% are estimated to be uncollectible. Accounts Receivable has a balance of $110,000 at the end of the year. The company uses the percent-of-sales method.
b. The Allowance for Uncollectible Accounts has a $900 credit balance prior to adjustment. Based on an aging schedule of accounts receivable prepared at the end of the year, $20,000 of accounts receivable are estimated to be uncollectible. Accounts Receivable has a balance of $104,000 at the end of the year.
c. The Allowance for Uncollectible Accounts has a $16,300 debit balance prior to adjustment. Based on an aging schedule of accounts receivable prepared at the end of the year, $200,000 of accounts receivable are estimated to be uncollectible. Accounts Receivable has a balance of $958,000 at the end of the year.
d. The Allowance for Uncollectible Accounts has a $500 credit balance prior to adjustment. Net credit sales during the year are $900,000 and 1% are estimated to be uncollectible. Accounts Receivable has a balance of $825,000 at the end of the year. The company uses the percent-of-sales method.
Required:
Prepare the adjusting journal entries for uncollectible accounts for each INDEPENDENT situation. Explanations are not required.

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Definitions:

Skinner

B.F. Skinner, an American psychologist, is known for his development of the theory of behaviorism and the concept of operant conditioning.

Respondent Behavior

A behavior that occurs as an automatic response to a certain stimulus, often used in classical conditioning scenarios.

Operant Behavior

Conduct that is regulated through its outcomes, such as incentives and penalties, within the learning environment.

Interactive Software

Software designed to respond to user inputs or other real-time actions.