Provide complete solutions & the final answer. An analysis of the accounts receivable of Grammar Inc. shows the following information:Age Balance % CollectibleCurrent $3,500,000 99.51 to 30 days past due31 to 60 days past due61 to 90 days past due91 to 120 days past due121 to 180 days past due400,000 70181 to 360 days past due 200,000 50More than 360 days past due 100,000 102,000,000 981,200,000 951,000,000 92800,000 85Before any adjustments were made, Grammar's allowance for doubtful accounts had a balance of $80,000.1. Determine the required balance of Grammar's doubtful accounts at the end of the reporting period.2. Determine the doubtful accounts expense Grammar should recognize during the period.3. Determine the net realizable value of Grammar's accounts receivable at the end of the period. Coachella Co. prepared the following analysis of its accounts receivable on December 31, 2020:Number of days past due Amount0-30 P5,000,00031-60 3,500,00061-90 1,000,00091-180 500,000Over 180 100,000Coachella's experience on the uncollectibility of its accounts receivables for the last five years are summarized below:Year End of year balance0-30 31-60 61-90 90-180 Over 1802019 P9,700,000 3 8 18 48 792018 9,300,000 2 9 19 52 722017 8,800,000 4 10 21 46 852016 8,200,000 4 7 17 54 812015 7,500,000 2 6 15 50 78% Uncollectible on days overdueBefore any adjustments were made, the balance of the allowance for doubtful accounts was P175,000. Coachella determines the balance of the allowance for doubtful accounts at the average percentage ofthe losses for the last five years. The entity writes off receivables if they are determined to be totally worthless.1. Compute for the adjusted balance of Coachella's allowance for doubtful accounts on December 31, 2020.2.Compute for the doubtful accounts expense that Coachella should recognize in 2020.3. Determine the net realizable value of Coachella's accounts receivable on December 31, 2020.

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Description: Provide complete solutions & the final answer. An analysis of the accounts receivable of Grammar Inc. shows the following information:Age Balance % CollectibleCurrent $3,500,000 99.51 to 30 days past due31 to 60 days past due61 to 90 days past due91

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An analysis of the accounts receivable of Grammar Inc. shows the following information: Age Balance % Collectible Current $3,500,000 99.5 2,000,000 98 1,200,000 95 1 to 30 days past due 31 to 60 days past due 61 to 90 days past due 91 to 120 days past due 1,000,000 92 800,000 85 121 to 180 days past due 400,000 70 181 to 360 days past due 200,000 50 More than 360 days past due 100,000 10 Before any adjustments were made, Grammar's allowance for doubtful accounts had a balance of $80,000. 1. Determine the required balance of Grammar's doubtful accounts at the end of the reporting period. 2. Determine the doubtful accounts expense Grammar should recognize during the period. 3. Determine the net realizable value of Grammar's accounts receivable at the end of the period.

An analysis of the accounts receivable of Grammar Inc. shows the following information: Age Balance % Collectible Current $3,500,000 99.5 2,000,000 98 1,200,000 95 1 to 30 days past due 31 to 60 days past due 61 to 90 days past due 91 to 120 days past due 1,000,000 92 800,000 85 121 to 180 days past due 400,000 70 181 to 360 days past due 200,000 50 More than 360 days past due 100,000 10 Before any adjustments were made, Grammar's allowance for doubtful accounts had a balance of $80,000. 1. Determine the required balance of Grammar's doubtful accounts at the end of the reporting period. 2. Determine the doubtful accounts expense Grammar should recognize during the period. 3. Determine the net realizable value of Grammar's accounts receivable at the end of the period.

Managerial Accounting

15th Edition

ISBN:9781337912020

Author:Carl Warren, Ph.d. Cma William B. Tayler

Publisher:Carl Warren, Ph.d. Cma William B. Tayler

Chapter16: Financial Statement Analysis

Section: Chapter Questions

Problem 9E

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