Intel Corporation is a well-known supplier of computer chips, - 10261

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yousafbhutta

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Intel Corporation is a well-known supplier of computer chips, boards, systems, and software building blocks. Assume the company recently reported the following amounts in its unadjusted trial balance at its year-end of December 27, 2008 (all amounts in millions):

 

  

 

 

 

Debits

 

Credits

  Accounts Receivable

$

3,200  

 

 

  Allowance for Doubtful Accounts

 

 

$

196   

  Sales (assume all on credit)

 

 

 

34,000   


 

  

 

Requirement 1:

Assume Intel uses ¼ of 1 percent of sales to estimate its Bad Debt Expense for the year. Prepare the adjusting journal entry required for the year, assuming no Bad Debt Expense has been recorded yet. (Do not round intermediate calculations. Enter your answers in millions. Omit the "$" sign in your response.)

Requirement 2:

Assume that Intel uses the aging of accounts receivable method and estimates that $338 of its Accounts Receivable will be uncollectible. Prepare the adjusting journal entry required at December 27, 2008, for recording Bad Debt Expense. (Enter your answers in millions. Omit the "$" sign in your response.)

Requirement 3:

Assume that Intel uses the aging of accounts receivable method and estimates that $338 of its Accounts Receivable will be uncollectible. Also, assume that the unadjusted balance in Intel’s Allowance for Doubtful Accounts at December 27, 2008, was a debit balance of $13. Prepare the adjusting journal entry required at December 27, 2008, for recording bad debt expense. (Enter your answers in millions. Omit the "$" sign in your response.)

 

 

 

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