Vine Company began operations on January 1, 2013. During its first year, the company completed a number of transactions involving sales on credit, accounts receivable collections, and bad debts. These transactions are summarized as follows:
a. Sold $1,348,300 of merchandise (that had cost $983,600) on credit, terms n/30.
b. Wrote off $19,400 of uncollectible accounts receivable.
c. Received $666,100 cash in payment of accounts receivable.
d. In adjusting the accounts on December 31, the company estimated that 2.90% of accounts receivable will be uncollectible.
What is the amount required for the adjusting journal entry to record bad debt expense?

Question

Vine Company began operations on January 1, 2013. During its first year, the company completed a number of transactions involving sales on credit, accounts receivable collections, and bad debts. These transactions are summarized as follows: 
a.	Sold $1,348,300 of merchandise (that had cost $983,600) on credit, terms n/30.
b.	Wrote off $19,400 of uncollectible accounts receivable.
c.	Received $666,100 cash in payment of accounts receivable.
d.      In adjusting the accounts on December 31, the company estimated that 2.90% of accounts receivable will be uncollectible.
 What is the amount required for the adjusting journal entry to record bad debt expense?

Quizplus · Accepted Answer

The Answer of Vine Company began operations on January 1, 2013. During its first year, the company completed a number of transactions involving sales on credit, accounts receivable collections, and bad debts. These transactions are summarized as follows: 
a.	Sold $1,348,300 of merchandise (that had cost $983,600) on credit, terms n/30.
b.	Wrote off $19,400 of uncollectible accounts receivable.
c.	Received $666,100 cash in payment of accounts receivable.
d.      In adjusting the accounts on December 31, the company estimated that 2.90% of accounts receivable will be uncollectible.
 What is the amount required for the adjusting journal entry to record bad debt expense?

Vine Company Began Operations on January 1, 2013