The ledger of nash's trading post, llc at the end of the current year shows accounts receivable $71,600; credit sales $865,890; and sales returns and allowances $40,660.

(a) if nash's trading post, llc uses the direct write-off method to account for uncollectible accounts, journalize the adjusting entry at december 31, assuming nash's trading post, llc determines that matisse’s $829 balance is uncollectible.
(b) if allowance for doubtful accounts has a credit balance of $1,022 in the trial balance, journalize the adjusting entry at december 31, assuming bad debts are expected to be 10% of accounts receivable.
(c) if allowance for doubtful accounts has a debit balance of $520 in the trial balance, journalize the adjusting entry at december 31, assuming bad debts are expected to be 8% of accounts receivable.

(a) If Nash's Trading Post, LLC uses the direct write-off method to account for uncollectible accounts, journalize the adjusting entry at December 31, assuming Nash's Trading Post, LLC determines that Matisse’s $829 balance is uncollectible.  

Dr Bad Debt Expense$ 829

Cr Accounts receivable Matisse$ 829

(b) If Allowance for Doubtful Accounts has a credit balance of $1,022 in the trial balance, journalize the adjusting entry at December 31, assuming bad debts are expected to be 10% of accounts receivable.  

Dr Bad Debt Expense$ 6,138

Cr Allowance for Uncollectible Accounts$ 6,138

(c) If Allowance for Doubtful Accounts has a debit balance of $520 in the trial balance, journalize the adjusting entry at December 31, assuming bad debts are expected to be 8% of accounts receivable.  

Dr Bad Debt Expense$ 6,248

Cr Allowance for Uncollectible Accounts$ 6,248

Explanation:

The ledger of Nash's Trading Post, LLC at the end of the current year shows  

Dr Accounts receivable$ 71,600

Credit Sales$ 865,890

Sales Returns and Allowances$ 40,600

NET Credit Sales$ 825,290

(a) If Nash's Trading Post, LLC uses the direct write-off method to account for uncollectible accounts, journalize the adjusting entry at December 31, assuming Nash's Trading Post, LLC determines that Matisse’s $829 balance is uncollectible.  

Dr Bad Debt Expense$ 829

Cr Accounts receivable Matisse$ 829

When direct write off method is applied it cancels bad debts at the time it was decided that the credit is bad, the total amount reported as bad debt expenses negatively affect the income statement and the accounts receivable are reduced by the same amount, which means less assets.

(b) If Allowance for Doubtful Accounts has a credit balance of $1,022 in the trial balance, journalize the adjusting entry at December 31, assuming bad debts are expected to be 10% of accounts receivable.  

Dr Bad Debt Expense$ 6.138

Cr Allowance for Uncollectible Accounts$ 6.138

Because the company already has a CREDIT balance ($1,022) in the Allowance for Doubtful Accounts it's necessary to register an entry that complement ($6,138) the existing value and reflect the value estimated as bad debts ($7,160 = $6,138 + $1,022), 10% of Accounts Rec.

(c) If Allowance for Doubtful Accounts has a debit balance of $520 in the trial balance, journalize the adjusting entry at December 31, assuming bad debts are expected to be 8% of accounts receivable.  

Dr Bad Debt Expense$ 6.248

Cr Allowance for Uncollectible Accounts$ 6.248

Because the company already has a DEBIT balance ($520) in the Allowance for Doubtful Accounts it's necessary to register an entry that compensate ($6,248) the existing value and reflect the value estimated as bad debts ($6,248 = $5,728 + $520), 8% of Accounts Rec.

answer; the correct answer to the above statement is (true);

hi,

henry is an economist and wants to understand the relationship between inflation and consumer spending habits. for his research, he needs the consumer price index for 2014 and the inflation rate. based on the prices of goods given, what will he find to be the cpi and inflation rate for 2014? assume that a consumer’s basket for three consecutive years consists of the following:

you dont privide answer choices.

answer - 15% of a inflatation rate is 15% less in cpi