balloons-plus-computes-bad-debt-based-on-the-allowance-method-they-determine-their-current-years-bal

Question

Balloons Plus computes bad debt based on the allowance method. They determine their current year's balance estimation to be a credit of $\$ 84,000 .$ The previous period had a credit balance in Allowance for Doubtful Accounts of $\$ 26,000 .$ What should be the reported figure in the adjusting entry for the current period?
A. $\$ 84,000$
B. $\$ 58,000$
C. $\$ 26,000$
D. $\$ 110,000$

Puneet Prajapati · Accepted Answer

okay. So evil. Unless that the meaning Lof bad bags. Okay, however, the violinist and it with example before definition purpose, you can write it. Is that a mom? Which is no one collected by the business in? Okay, let&#x27;s suppose the mystery who is out business order and who isn&#x27;t dealing off. We don&#x27;t make Golic. Perhaps I won&#x27;t be a business to see who is up rest. Vardy customer mystery Have you so Mr A God&#x27;s work? Because it sold some goods. Well, $500 Now what happens? Mr. C said that I would be You would give it in five months. Okay. However, Mr sees across with the customer, but he is not able to buy one that donors anything. So he asked for five months time. So know what happens. Mr. Is that next estimated That How much next estimated that How much off the back? Those balance. Okay. How much off the customers balance is known collectively building the other. Okay, let&#x27;s suppose Mr Age and break it for financially. See, it&#x27;s off for current financial year. The pregnancy. So this same Billy, known as can I drink sale is a sale in which the customer is the amount. So what? Parents are in Syria? Let your support Mr. He hasn&#x27;t 10,000 of these. So Mr He estimates Okay, that I will not be able to correct collected then person offset. Gemma. Okay. Non electable are sanctions. Okay? No telling people about. So what? That percentage this is then puts it off this arm. Okay, so this will be you can ask allowance for Baghdad violence for north, the actual medic. Because this is lordy and Children. We just It is the allowance these on the estimation made. So that is my BR writing us allowance. So let&#x27;s suppose we have created 1000 back housing as allowance for bed. Dad, okay away. But however, in the current in the previous financial year. So this is night. This $1000 would be what I didn&#x27;t find. Engineer. However, for this financially, it the doctor&#x27;s been in force. Okay, Does the flowers for my big balances, I wonder girls And for current financial year, what we can&#x27;t be having you got having love $1000 billions. So at the end of the current financial year and the end after in financially and be Bill passed and just went in three or $500 Who add on movie balance? Okay, Who and onto the balance off allowance for back there? Because out Off, Because we ve bugging foreign financially. It&#x27;s so we have 1000. We should have 1000 balance $1000 balance for allowance for better, however be. But we were only having $500 still last year. So now we have a positive discrimination before $500. Okay. Who show that That our total balance for allowance for $50,000. So I just vanity will be passed for only $500. That is that differential. Okay, Like vice in the current case also. Okay, as we have for the current financial year, you have balance off alarms for beggars. Well, the current financial year And for the previous financial here, Well, what we have you have Yankee 6000 the 6000 as dependents. So at the end, off her identity and how much we have purpose, do you have a boss for repeated problems? So just bin it even be possible I just made and deep every possible 50 a couple. Okay, small that back matches with choice. Be so Join Beastie. Correct answer. Okay. However, you can write on your local African. So far, however, choice busy Erekat&#x27;s okay, that&#x27;s all for our solution.

Puneet Prajapati · Answer

ve vill in the stack. Be meaning or gators. Okay? Or alternatively, we say it comes to deceive. Okay, so he&#x27;ll under standard through an example. Followed by that people understanding lurking methodologies. Okay. No, that you&#x27;re supposed there is mystery. And that is Mr C. So Mr is a businesswoman. Okay. Here. The hooting furniture. Okay. He says from nature to their customers, however, see is a trustworthy customer who was steady. So Mr Mr is of light someone worse. Okay, Funded you off. World Rubies $1000. Okay, so Mr as Mr C was addressed with the customer. So Mr C said that I would be you with indolence. Okay, so, Mr Si se that I will pay you within ruins so they will be to account affected. Okay, first of all, sales account. Okay, sales. The cardinals have a new OK, so Mr Religion really Revenue $1000 because he is selling their goods to Mr C. What stuff or doctors will be creative? Okay, because Mr c will be cleared it because Mr C will be able to sell Mr. C will be able to sell. Okay, Mr Siegel, Mr Singh will pay whom I started within two months time. Now what happens? Mr. B estimates that off total. So, Mr C. First apart, Mr C will be a doctor for Mr So what? Mr estimates that four current financial year or for every even injury whatever be the account balance. Okay. What kind of account? The balance of letters. Okay, they haven&#x27;t be. They mean stands that 10% of that others will not be okay and percent Americans with. So let&#x27;s say suppose. But in this finding, Children within this financial year Tariff on angelea Current one engine yet be Emily Housing balance as balance of letters for Mr C. Okay, so for current allowance for birthdays will be $100. Okay, It means $100 will nor be deceived. OK, known collectible $100 will not be corrected for me. Some doctors. Okay, Next. I suppose so. This amount will be a credit balance. Okay? Because that has ever David balance. So who showed that that there is $100 as an amount which is known collective? So it will be was integrated violence. It will. It will always have a plan. Independence. So now next, I suppose for current financial year we have, you have $100. Okay, But now for previous financially Yet the balance waas the batter&#x27;s waas want of $3. Okay, so obviously be even having to the balance of what your daughter&#x27;s. No, we are having $100 So v dealmaking adjustment and three or $50 woody present that the cover allowance for Bender&#x27;s allowance for non collective mom&#x27;s hair has really was down 100 Okay from previous financial year. So evil person adjustment entry for $50 on you. OK, so that&#x27;s all for the current solution also. So what? We have the right that that for the therefore, the current financial year, we have estimate, do the balance off $45,000. Looking back, believe your balance. There will be a credit balance for allowance for bad necks. However, previously in previous financial year in previous financial year we have balance off. Well, it doesn&#x27;t, which means our allowance for known collective amount has increased from previous financial year. Okay, so evil person adjustment people How much? Only 23,000. Okay, because out of 45,000 because because we are working for current financial year, so we will look for current financially and previous financial year. So out of 53,000 has been booked into this year. Okay. However, for previous financial year, it is the 11 from previous. But out of 45 the handbook 1000 about. So now we have to do Bob and I Just minutes before that, he spent that do help in dollars. Okay, so that that matches with choice E. Okay, right. Choice sees the I see the correct answer. Okay, so I see the correct answer. However you get, however you again that I don&#x27;t What about everything so far? Okay. The example and all of that stuff. Okay. I rejoice with the correct answer. That&#x27;s all for extradition.

Puneet Prajapati · Answer

Okay. So even at this time, the meaningful. But I Do you see it? Okay. However even understand, First up will be built by definition are bad that we really take an example. And how does it ended? He estimated the non collectable balance for different engineer on different matters. Okay, on the basis of different. So it is the amount off sale. Okay, which is north collected and ideology. Okay, so we have return a very small definition. However, we will investing that. What is the meaning of the deputation to an example. Okay. Yeah. So that&#x27;s a support business today. What was a business? One that will beings And for nature there&#x27;s Mississippi. Who is that customer? Okay, so misters it&#x27;s or some books all $500. Who, Mr. See? Now Mr sees a close was because too much to Mr Lee and me to see so that I will say human later, partner. Let&#x27;s say within moments. Okay. Within two months, Mr C will be who was today. Okay, so the accent will be known as this is the example off. But I do see okay. However, what happens when there is accredited? Still so there becomes a balance of craters. Parents off Data&#x27;s. So in that case, Mr C, he&#x27;s our deck. That who? Mr. Okay. For how much? What? $500. Now, Mr A follows a practice. Mr. If all of the practice off estimation. Okay, off non collective in minutes. Like to suppose Mr He has. But I did see now we haven&#x27;t destroyed them at moving off, Eric, since we will play example from that. Was it that perspective? So let&#x27;s in. The original has engineered by Mr Day for the current financial year is $10,000. No, As for the specific method income different matter what happens, miss up here. Say, is that okay? Out off this, those $10,000 I will not be even to collect. Yeah, okay. I will not be able to collect 10% of the amount off the pregnancy. So So it means non collectable amount. What will be the non collective amount? Okay, what will be the non directive amount? $1000. Okay, so it means that so it means that Mr Estimates on the basis often agencies Okay, so now in the given gifts also. So the person that has to be applied on credit sale. Okay, now what happens next? I suppose the sales are in the current cases. 3 $90. Okay. And the personally, what is the person designated here? That is three point 5%. Okay, so that is coming out to be $13,000. $13,650. Okay, so that matches which I see. So Choice A is the correct answer. Okay. However you can write What have you done so far? Are your lord books for future reference? Okay, however, choice is the correct answer. That&#x27;s all for our solution.

Puneet Prajapati · Answer

Okay. So even understand the meaning where he&#x27;d seen. Okay, David methodologies, however being understanding. Okay, so that&#x27;s disappointing. It is ABC company, and there is Mr Sick, and it is a company. Transferred works sandbars off. But I haven&#x27;t big dollars to Mr Mrs. However, Mr Zach, is it because little ABC completes? Mr. Zack said that I would be you and your department. Okay, so then ever the cash payment is Mark made immediately on the delivery of goods that becomes up, please. Okay. Back comes up. That is, however, let&#x27;s suppose a physical me. So whenever accredits religion Major, the doctor worked on the electric stuff. Our seats off course because it is hoping has made sales off $500. So say it&#x27;s going to be affected. The second I believe that personal. Who&#x27;s a checkup? Mr. Zerga, Mr Is that is the next step you because that that is a person from whom the amount of sale is recoverable. So $500 it is recoverable from Mr Said. Ok, so that this fight the fact is right. Look outside. These are OK, but we have identified okay? No. A music company has a practice that It estimates that out of the out of the tetanus okay, off the thickness, some gators will not be the current financially. Okay, that is a both Because I don&#x27;t financially yet. There&#x27;s our The balance of records are $100,000 now, a physical misses that. That is 10% of the doctors moving, not paid within the family. So what&#x27;s that camo? $10,000. So what is the night about? That will be people 90,000. Okay, that is the amount that should be. But I did get I missed it by ABC company. No, this is also less balance sheet. Better because in Berlin, cheap were displayed in that zone. I said site. Okay, that is why this letter is also low This LNG these I this on the younger books so that you again have it for you to insult. So this is a challenge. However, in the drink, it&#x27;s also what we have, actually. Okay. We had one technique for housing as the balance off letters. However the company estimators get, he estimates that 4.6% beat off the total amount. That is the commitment from tetanus villa. Anarchy collected okay, that would not be collected. On how On how is that much about that? This 6164 Okay, so that matches the choice. Be okay. So for understanding off the finalists, Rumi who have understanding off like a CSI ordered by that you have understanding of what it you make it that there. How you estimate the amount, which is known collectively in the cafeteria. Okay. Ordered by that you can come through the mincer. Okay, You can come to that main solution so that it will be more clear to you that more physically so choice Be liquor cancer for the guest.

Puneet Prajapati · Answer

Okay. So people understand the meaning off. I also deceiving you for by that, even in this day, that gullible estimate My Which 13 B estimate that off How much we are doing on the count. But first of all, let&#x27;s understand the meaning of the houses. Okay, So when I said it is Mr G, who is that? Is this one? Yeah. Who is in dealing Lol Foods and beverages. I did it. Mr Be So, Mr Visa, Most of my through Mr J. So, Mr J soldiers serving words off Ma Myst December, Mr. But Mr Be their customers because the muscles to be set they gathered. You okay for Mr J agreed with this, however. What happens then? The time arrives, okay. When? Their time when I used to be. Well, Mr J. Mr. B, as here. But before that twisted Mr Geezer there. Okay, I understand that the we even be able to deceive the amount that was recovered. That is completely from over by be sure Estimate that How much off there tomorrow. Okay, so Mr J follows Mr J emphasised estimation like this off that that expense. Okay, so there is a popular that It says that night. I suppose Mr Be asked for three months. So previously we big gun there, Mr. Be there didn&#x27;t bite unless disciples initially he asked for initially the passport agreements, but later balding guy. But Mr B, but not was not able to be with demons so he asked for. And the three months. But still he was not able to pay the any. Ask for another two months night twice He kept going in freezing, thinking on your feet. Have you so a popular? I think it says that when I love that about Okay, Mr Visa, that Mr J will be so when it is a person from home that from the amount of saying it&#x27;s become sylvan that keeps on increasing the credit here. Okay, so the provide the probability off recovering the amount the same from the doctor will become very, very, very nous because business entity or we can say it, Mr. G. However, Mr Back Mr B is only delaying via home, okay? He is not willing to pay the home otherwise, he was happy within in each other. Okay, so that process, which we have just disclosed Okay, that matches with choice D. It says that Why is that? Better violence, Steve Becoming old and old by the time passes. Okay, de priority off Recovering the money from the government will be very, very less so. That method We can also understand that methods as Manan cheap aging office. Okay, so packed matches get choice deep tries deed the correct answer. Okay, that&#x27;s all part of a solution. Thank you.

Heather Zimmers · Answer

here we see a very rough sketch of the graph showing in the problem on the X axis. We have time, years since 1990 on the Y Axis, we have debt that is the credit card debt per household. So the first question is, what does the D intercept tell us? The D intercept is the Y intercept, but we&#x27;re just calling it deep and notice that that point is the 0.0.0 2500 zero means the number of years since 1990. So that means that in 1990 the credit card debt per household was $2500 for part B. We want to find the slope, and you can see that I have a couple of points on the line. Here we have the point 28,000 and we have the 0.0.0 2500 so we can find that rise between those two. That would be 5500 and the run between those two would be 20 so we can calculate the slope rise overrun 5500 over 20 and that gives us 275 now. What that means is credit card debt is going up $275 per year. Her household Okay, Part C. Let&#x27;s write the equation of the line and so we can write it in the form y equals MX plus B. We&#x27;ve already found the slope, and we know the why intercept and for why we&#x27;re using de for debt. R M is to 75 for X were using T for time, and our intercept is 2500.

Problem

Conner Pride reports year-end credit sales in the…

Problem 7 Medium Difficulty

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Principles of Accounting Volume 1: Financial Accounting

Mitchell Franklin, Patty Graybeal, Dixon CooperPrinciples of Accounting Volume 1: Financial Accounting

Mitchell Franklin, Patty Graybeal, Dixon Cooper

Principles of Accounting Volume 1: Financial Accounting