2) Mariah's "Vertical/Horizontal Up Down Sideways Company" had the following information regarding the aging of their accounts receivables: Age Categories Amount % estimated uncollectible Not yet due Less than 30 days past due 30 to 60 days past due 61 to 120 days past due Over 120 days $58000 $35,000 $23,000 $12,000 $15,000 2% 4% 6% 9% 25% The allowance for doubtful accounts has a credit balance of $900 prior to this year's adjustment. a) Calculate the total amount of estimated bad debt b) Prepare the journal using the above information to record the bad debt expense for the year M. c) Prepare the journal entries for the following: 1) The company decides to write off a $750 account of a customer who gone bankrupt. has 2) The company receives a $300 check from the customer that they wrote off in Part C d) Assume now that it is the end of the next year. The company at that time has a debit balance of $950 in the allowance for doubtful accounts. The aging of accounts receivables indicates that the total balance for the allowance account should be $14,200

2) Mariah's "Vertical/Horizontal Up Down Sideways Company" had the following information regarding the aging of their accounts receivables: Age Categories Amount % estimated uncollectible Not yet due Less than 30 days past due 30 to 60 days past due 61 to 120 days past due Over 120 days $58000 $35,000 $23,000 $12,000 $15,000 2% 4% 6% 9% 25% The allowance for doubtful accounts has a credit balance of $900 prior to this year's adjustment. a) Calculate the total amount of estimated bad debt b) Prepare the journal using the above information to record the bad debt expense for the year M. c) Prepare the journal entries for the following: 1) The company decides to write off a $750 account of a customer who gone bankrupt. has 2) The company receives a $300 check from the customer that they wrote off in Part C d) Assume now that it is the end of the next year. The company at that time has a debit balance of $950 in the allowance for doubtful accounts. The aging of accounts receivables indicates that the total balance for the allowance account should be $14,200

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Marigold Inc. uses the allowance method to estimate uncollectibles. The company produced the following aging of the accounts receivable at year-end. (a) Correct answer icon Your answer is correct. Calculate the total estimated uncollectibles based on the below information. Number of Days Outstanding Total 0–30 31–60 61–90 91–120 Over 120 Accounts receivable $212,900 $80,500 $47,100 $41,900 $25,500 $17,900 % uncollectible 1% 4% 5% 8% 20% Estimated Bad debts $enter a dollar amount $enter a dollar amount $enter a dollar amount $enter a dollar amount $enter a dollar amount $enter a dollar amount eTextbook and Media List of Accounts Attempts: 1 of 3 used (b) - (d) (b) Prepare the year-end adjusting journal entry to record the Bad Debt Expense using the aged uncollectible accounts receivable…
The following summarizes the aging of accounts receivable for Orange Incorporated as of July 31, Year 1: Number of Days Unpaid Not yet due 1 to 30 days past due 31 to 60 days past due Over 60 days past due Total Accounts Receivable 11.130 $ 175,982 89,200 53,600 31,800 Historical % Uncollectible 17,424 margin of error +/-3 www. 29 12% 18% The unadjusted balance of the Allowance for Doubtful Accounts of Orange Incorporated is a credit balance in the amount of $17.578 on July 31, Year 1. What is the amount of the adjusting entry to be recorded on July 31 Year 17 35%
2. XYZ Inc. uses the allowance method to estimate uncollectible accounts receivable. The company produced the following aging of the accounts receivable at year-end. Number of Days Outstanding Total 200,000 77,000 0-30 31-60 61-90 91-120 Accounts receivable % uncollectible Over 120 $15,000 46,000 39,000 23,000 1% 20% 4% 5% 8% Estimated bad debts Instructions: A. Calculate the total estimated bad debts based on the above information. B. Prepare the year-end adjusting journal entry to record the bad debts using the aged uncollectible accounts receivable determined in (A). Assume the current balance in Allowance for Doubtful Accounts is an $8,000 debit. C. Of the above accounts, $5,000 is determined to be specifically uncollectible. Prepare the journal entry to write off the uncollectible account. D. The company collects $5,000 subsequently on a specific account that had previously been determined to be uncollectible in (C). Prepare the journal entry (ies) necessary to restore the account…
d) Golden Music Company uses the allowance method to estimate uncollectible accounts receivable. An aging of the accounts receivable revealed the following: Estimated Percentage Uncollectible Current Accounts $17,000 $1,500 $1,200 $500 $900 $21,100 1% 1-30 days past due 31–60 days past due 61–90 days past due Over 90 days past due Total Accounts Receivable 3% 6% 12% 25% On 31 December 2021, the company has found out that a customer went bankrupt and management agreed that the accounts receivable of $900 included above which is past due for over 90 days can be written off. i) Compute the total estimated uncollectible accounts receivable as at 31 December 2021. ii) Prepare the journal entry year-end to write off the accounts receivable of $900 and the adjusting journal entry to record the bad debts for the year ended 31 December 2021.
Renta Public Image, a firm specializing in marketing and publicity services, uses the balance sheet ap- proach to estimate uncollectible accounts expensc. At year-end an aging of the accounts receiv- Aging Accounts able produced the following classification: PROBLEM 7.5 Receivable; Write-offs LO 5 Not yet due 1-30 days past due $333,000 135,000 31-60 days past due 58,500 61-90 days past due 13,500 Over 90 days past due 22,500 Total $562,500 On the basis of past experience, the company estimated the percentages probably uncollectible for the above five age groups to be as follows: Group I, 1%; Group 2, 3%; Group 3, 10%; Group 4, 20%; and Group 5, 50%. The Allowance for Doubtful Accounts before adjustment at December 31 showed a credit bal- ance of $8,100. Instructions & Compute the estimated amount of uncollectible accounts based on the above classification by age groups. 6. Prepare the adjusting entry needed to bring the Allowance for Doubtful Accounts to the proper amount. C. Assume…
2. A company uses the aging of accounts receivable method to estimate its bad debts expense, On December 31 of the current year an aging analysis of accounts receivable revealed the following- Estimated Uncollectible 0.5% 2.0 80 20.0 50.0 Accounts Account Age Receivable $ 620,000 Not due yet 270,000 1-30 days overdue 145,000 31-60 days overdue. 55,000 61-90 days overdue. 32,000 91-120 days overdue. 18.000 Over 120 days overdue S1,140,000 Total 70.0 Required: a. Calculate the amount of the Allowance for Doubtful Accounts that should be reported on the current year-end balance sheet. b. Calculate the amount of the Bad Debts Expense that should be reported on the current year's income statement, assuming that the balance of the Allowance for Doubtful Accounts on January 1 of the current year was $44.000 and that accounts receivable written off during the current year totaled $49,200. c. Prepare the adjusting journal entry to record bad debts expense on December 31 of the current year. d.…
The following summarizes the aging of accounts receivable for Johnston Supplies, Incorporated as of July 31, 2022: Total Accounts Receivable $ 127,700 Historical % Uncollectible 90,400 54,800 33,000 Not yet due 1 to 30 days past due 31 to 60 days past due Over 60 days past due Required: a. The unadjusted balance of the Allowance for Doubtful Accounts of Johnston Supplies, Incorporated is a credit balance in the amount of $29,307 on July 31, 2022. Prepare the required adjusting entry to record Bad Debt Expense for the year. b. Johnston Supplies, Incorporated writes off $3,201 of uncollectible accounts on August 15, 2022. Prepare the required adjusting entry to record the write-off. c. Use a T-account to determine the account balance in the Allowance for Doubtful Accounts on August 15, 2022. 2 Complete this question by entering your answers in the tabs below. Number of Days Unpaid Required A The unadjusted balance of the Allowance for Doubtful Accounts of Johnston Supplies, Incorporated…
Evers Industries has a past history of uncollectible accounts, as follows. Age Class Percent Uncollectible Not past due 3% 1–30 days past due 4 31–60 days past due 15 61–90 days past due 33 Over 90 days past due 86 Estimate the allowance for doubtful accounts, based on the aging of receivables information provided below. Evers Industries Estimate of Allowance for Doubtful Accounts 1 Days Past Due Days Past Due Days Past Due Days Past Due 2 Balance Not Past Due 1-30 31-60 61-90 Over 90 3 Total receivables 1,150,100.00 618,800.00 233,100.00 118,000.00 105,800.00 74,400.00 4 Percentage uncollectible 3.0% 4.0% 15.0% 33.0% 86.0% 5 Allowance for doubtful accounts
I NEED HELP FINDING THE DOLLAR AMOUNT Vaughn Inc. uses the allowance method to estimate uncollectible accounts receivable. The company produced the following aging of the accounts receivable at year-end. Calculate the total estimated bad debts based on the below information. Number of Days Outstanding Total 0–30 31–60 61–90 91–120 Over 120 Accounts receivable 331,400 104,000 70,800 65,400 49,100 $42,100 % uncollectible 2% 5% 6% 9% 21% Estimated Bad debts $enter a dollar amount $enter a dollar amount $enter a dollar amount $enter a dollar amount $enter a dollar amount $enter a dollar amount
Kirchhoff Industries has a past history of uncollectible accounts, as shown below. Age Class PercentUncollectible Not past due 2% 1-30 days past due 6 31-60 days past due 25 61-90 days past due 35 Over 90 days past due 50 Estimate the allowance for doubtful accounts, based on the aging of receivables schedule below. Kirchhoff IndustriesAging of Receivables Schedule Customer Balance Not PastDue 1-30 DaysPast Due 31-60 DaysPast Due 61-90 DaysPast Due Over 90 DaysPast Due Subtotals 553,700 326,700 121,800 49,800 27,700 27,700 Conover Industries 18,900 18,900 Keystone Company 22,000 22,000 Moxie Creek Inc. 4,800 4,800 Rainbow Company 12,000 12,000 Swanson Company 27,700 27,700 Total receivables 639,100 354,400 133,800 54,600 49,700 46,600 Percentage uncollectible 2% 6% 25% 35% 50% Allowance for Doubtful Accounts fill in the blank 1 fill in the blank 2 fill in the blank 3…
. Facebook uses the balance sheet approacy to estimate uncollectible accounts expense. At year-end an aging of the accounts receivable produced the following five grouping: Groups Accounts receivable by age Age group total Estimated Uncollectible accounts a. Not yet due $400,000 b. 1-30 days 90,000 c. 31-60 days 40,000 d. 61-90 days 20,000 e. Over 90 days past due 50,000 Total $600000 On the basis of past experience, the company estimated the percentage probability uncollectible for the above five age groups to be as follows: a, 1%; Group b, 2%; Group c, 9%; Group d, 15%; and Group e, 40%. a) Compute the estimated amount of uncollectible accounts based on the above classification by age group. Show your calculation in the table provided above. Please also show the total estimated uncollectible accounts. b) The allowance for doubtful accounts before adjustments at December 31,2020…
Sunland Inc. uses the allowance method to estimate uncollectible accounts receivable. The company produced the following aging of the accounts receivable at year-end. (a) Correct answer icon Your answer is correct. Calculate the total estimated bad debts based on the below information. Number of Days Outstanding Total 0–30 31–60 61–90 91–120 Over 120 Accounts receivable 200,900 77,000 45,800 38,700 22,900 $ 16,500 % uncollectible 2% 5% 6% 9% 21% Estimated Bad debts $ enter a dollar amount $ enter a dollar amount $ enter a dollar amount $ enter a dollar amount