posted by .

Anzlyzing financial statement effects of accounting for bad debits using the allownace method.

Duffy Bros. uses the allowance method to account for bad debets expense. Duffy experienced the following four events in 2008:

1.Recognition of 64,000 of service revenue on account

2. Collection of 56,000 cash from accounts receievable

3. Determination that 900 of its accoutns were not collectible and wrote off these receivables.

4. Recogition of bad debits expense for the year. Duffy estimates that bad debits expense will be 2 percent of its sales

My Answers:
1. Debit Accounts receivable 64,000
Credit Service Revenue 64,000

2. Debit Cash 56,000
Credit Accounts receivable 56,000

3. Debit Allowance for Doubtful accounts 900
Credit Accoutns receivable 900

4. I don't know

Are those right? Please help me.

Respond to this Question

First Name
School Subject
Your Answer

Similar Questions

  1. finance

    a financial mgr is considering operating a lock box. she forecast that 400 payments a day will be made to the lockbox with the average payment being $2,000. the banks charge for operating the lockbox is .40 cents per check. the interest …
  2. accounting

    Sherrod, Inc., reported pretax accounting income of $89 million for 2006. The following information relates to differences between pretax accounting income and taxable income: Income from installment sales of properties included in …
  3. accounting

    I was given gross accounts receivable $15,200,000 and $17,600,000 respectively; allowance for uncollectible accounts at the begining and end of the year $1,400,000 and $1,550,000; expense for estimated uncollectible accouts $750,00 …
  4. Intermediate Accounting

    Pan Erickson Construction Company changed from the completed-contract to the percentage-of-compleltion method of accounting for long-term construction contracts during 2008. For tax purposes, the company employs the completed-contract …
  5. math

    Information related to Hermesch Company for 2011 is summarized below. Total credit sales $2,200,000 Accounts receivable at December 31 825,000 Bad debts written off 33,000 What amount of bad debts expense will Hermesch Company report …
  6. Intermediate accounting

    Rosson Corporation, which began business on January 1, 2008, appropriately uses the installment sales method of accounting for income tax reporting purposes. The following data are available for 2008: Installment accounts receivable, …
  7. accounting

    For each of the following, indicate the accounting concept or constraint that has been violated, if any: 1) The company currently records its accounting transactions and prepares its financial reports manually. The cost of using a …
  8. accounting

    Valmont, Inc. experienced the following events in 2012, in its first year of operation. 1. Received $20,000 cash from the issue of common stock. 2. Performed services on account for $50,000. 3. Paid utility expense of $12,500. 4. Collected …
  9. accounting

    Journalize the write-offs and the year-end adjusting entry for 2012 under the allowance method, assuming that the allowance account had a beginning balance of $55,000 on January 1, 2012, and the company uses the analysis of receivables …
  10. Financial Accounting

    Use the following information to answer multiple-choice questions 5 and 6. At the end of the year, before any adjustments are made, the accounting records for Sutton Company show a balance of $100,000 in accounts receivable. The allowance …

More Similar Questions