Compute the Ending Balance in the Allowance for Doubtful Accounts

question 60

Short Answer

Compute the ending balance in the allowance for doubtful accounts after the adjusting entries have been prepared for the following independent situations.
a)Credit balance in allowance for doubtful accounts is $500 before adjustment. An aging schedule indicates $3,500 of accounts receivables are uncollectible.
b)Debit balance in allowance for doubtful accounts is $700 before adjustment. An aging schedule indicates $4,300 of accounts receivables are uncollectible.
c)Credit balance in allowance for doubtful accounts is $500 before adjustment. Net credit sales for the current year are $325,000 and 1% is considered uncollectible.
d)Debit balance in allowance for doubtful accounts is $700 before adjustment. Net credit sales for the current year are $350,000 and 1.25% is considered uncollectible.

---

Definitions:

Consistency

The principle of maintaining uniformity or stability in one's beliefs, attitudes, and behaviors over time or across situations.

Kelley's Covariation Model

This model proposes that people attribute behavior to factors that covary most closely with, or appear to cause, that behavior, considering consensus, distinctiveness, and consistency information.

Consensus

A general agreement among a group of people or within a community, often reached after discussion and consideration of various perspectives.

Distinctiveness

the quality or condition of being clearly different or unique, setting someone or something apart from others.