Saturday, 4 May 2013

Contoh Soal Bed Debt expense



Presented below are a series of unrelated situations
a.    Halen Company’s unadjusted trial balance at December 31, 2010, included the following accounts.


Debit
Credit
Allowance for Doubtful Account

$2,000
Sales

$1,200,000
Sales Discount
$120,000



Halen Company estimates its bad debt expense to be 2% of net sales. Determine its Bad Debt Expense for 2010!
b.    Using data (a), assuming that Halen Company had $800,000 Account Receivable. Halen Company estimates bad debt expense with provide for doubtful account on the basis 3% of Receivable. Determine its Bad Debt Expense for 2010!
c.     Shore Co. Provide for doubtful accounts based on 3% of credit sales. The following data are available for 2010.

Credit Sales during 2010
$2,400,000
Allowance for doubtful accounts 1/1/10
$17,000
Collection of accounts written off in prior years
(customer credit was reestablished)
$8,000
Customer accounts written off as uncollectible during 2010
$30,000

What is the ending balance of AFDA??
d.    The chief accountant for Ballywood Corporation provides you that $34,500 of account receivable written off in the current year. Ballywood Corporation follows the policy of debiting Bad Debt Expense as accounts are written off. The chief accountant maintains that this procedure is appropriate for financial statement purposes because the tax authority will not accept other methods for recognizing bad debts. All of Ballywood Corporation’s sales are on a 30-day credit basis. Sales for the current year total $2,400,000, and research has determined that bad debt losses approximate 2% of sales.
Do you agree with Ballywood policy to recognize bad debt expense? Why!
By what amount would net income differ if bad debt expense was computed using percentage-of-sales approach?
Jawaban:

 a)     2% of net sales
BDE = (1.200.000 – 120.000) x 2% = 21.600

 b)      3% of A/R
BDE = (800.000 x 3%) - 2.000 = 22.000
  
 c)     Ending balance of AFDA
AFDA

17.000

72.000

8.000
30.000


67.000
   
    d)      Ballywood
Revenue 2.400.000 – 34.500                             = 2.365.500
Revenue 2.400.000 – (2.400.000 x 0.02)          = 2.352.000
Selisih                                                                = 0.013.500
Jadi, tidak setuju. Karena pendekatan dengan menggunakan direct write-off akan mengurangi operating income lebih besar jika dibandingkan dengan menggunakan pendekatan percentage of net sales.