Ask Experts Questions for FREE Help !
Ask
    misha2006's Avatar
    misha2006 Posts: 4, Reputation: 1
    New Member
     
    #1

    Nov 3, 2013, 10:39 AM
    How to prepare a partial balance sheet
    How to prepare a partial balance sheet for a company from the following information:

    Cash-$10,000

    Account Receivable-$6000

    Bad Debts Expense-$1,400

    Merchandise Inventory-$1,800

    Allowance for Doubtful Accounts-$200
    rehmanvohra's Avatar
    rehmanvohra Posts: 739, Reputation: 27
    Senior Member
     
    #2

    Nov 3, 2013, 11:46 PM
    Ignore bad debts expense as it is an item for Income statement. For a partial balance sheet, you need to project the available information. In this case it is current assets.
    misha2006's Avatar
    misha2006 Posts: 4, Reputation: 1
    New Member
     
    #3

    Nov 6, 2013, 04:24 PM
    [QUOTE=rehmanvohra;3580072]Ignore bad debts expense as it is an item for Income statement. For a partial balance sheet, you need to project the available information. In this case it is current assets.

    Thank you
    misha2006's Avatar
    misha2006 Posts: 4, Reputation: 1
    New Member
     
    #4

    Nov 6, 2013, 04:27 PM
    Company had a balance in Accounts Receivable of $22,300. Net credit sales for the year were $515,000. The Allowance for Doubtful Accounts has a debit balance of $615. How do you journalize the recording of the bad debt expense under the balance sheet approach if $1,510 is the estimated amount of uncollectible accounts?
    rehmanvohra's Avatar
    rehmanvohra Posts: 739, Reputation: 27
    Senior Member
     
    #5

    Nov 6, 2013, 09:26 PM
    The formula is:
    Required balance 1510
    + Opening debit balance 615
    Total expense 2125

    Note:
    (a) If opening balance is credit then you deduct from required balance.
    (b) If there is any write offs, you must add to required balance

Not your question? Ask your question View similar questions

 

Question Tools Search this Question
Search this Question:

Advanced Search

Add your answer here.


Check out some similar questions!

How to prepare a continuation sheet on a balance sheet [ 0 Answers ]

I can get all of my information on one sheet of my balance sheet. How do I begin the second continuation sheet? Do I have to have a heading on it also? Please I need help!

Determine Working Capital from a partial balance sheet [ 12 Answers ]

Presented below is a partial trial balance for the Kansas Instruments Corporation at December 31, 2011. Account Title Debits Credits Cash 21,000 Accounts receivable 134,000 Raw materials 31,000 Note receivable 107,000 Interest receivable 4,100 ...

Determine Working Capital from a partial balance sheet [ 1 Answers ]

Presented below is a partial trial balance for the Kansas Instruments Corporation at December 31, 2011. Account Title Debits Credits Cash 22,000 Accounts receivable 141,000 Raw materials 33,000 Note receivable 114,000 Interest receivable 3,400 Interest payable 4,000 Marketable securities...

How to prepare a balance sheet referring a trial balance [ 5 Answers ]

How to prepare a balance sheet from a trial balance ? Can anybody help me by giving An example Regards alanani

How to prepare balance sheet with trail balance [ 1 Answers ]

How to prepare balance sheet with trail balance


View more questions Search