Coronado Corporation operates in an industry that has a high rate of bad debts. Before any year-end adjustments, the balance in Coronado's Accounts Receivable account was $591,900 and Allowance for Doubtful Accounts had a credit balance of $44,990. The year-end balance reported in the balance sheet for Allowance for Doubtful Accounts will be based on the aging schedule shown below. Days Account Outstanding Less than 16 days Between 16 and 30 days Between 31 and 45 days Between 46 and 60 days Between 61 and 75 days Over 75 days (to be written off) (a) Amount $314,500 112,400 85,000 44,200 19,900 15,900 Probability of Collection 0.98 Balance for allowance for doubtful accounts $ 0.90 0.86 0.79 0.55 0.00 What is the appropriate balance for Allowance for Doubtful Accounts at year-end?

Q: What is crj

A: Crj means cash receipt journal .

Q: What is Reg D?

A: Regulation D (Reg D): It may be a Securities and Exchange Commission (SEC) law confining exceptions…

Q: What are ADRs?

A: Answer: An American depositary receipt (ADR) is a negotiable asset that denotes a non-US company…

Q: What is Gordon model?

A: Intrinsic value of a stock is based on the internal information of an organization. That is, market…

Q: Read and interpret anincome statement.

A: It shows the income generated by the company.

Q: What is WACC

A: Weighted average cost of capital(WACC) is the average cost of several source of financing. It is…

Q: Definition of Marco

A: Macroeconomics is the study of how the economy behaves in broad outline. It is largely concerned…

Q: How about the Question 3

A: The present value of growth opportunity is defined as the value of stock attributed to the earnings…

Q: anuty What general internal control v

A: Given case is: All-Around Sound Co. discovered a fraud whereby one of its front office…

Q: What is the SML? What is the CAPM? What is the APT?

A: Security Market Line (SML):The Security Market Line (SML) is a graphical representation of the…

Q: WHAT'S THE ANSWER TO D, E AND F?

A: Given, Net nonoperating obligations (NNO) Return on equity (ROE) Nonoperating return component of…

Q: What is MM Proposition I?

A: Modigliani and Miller’s approach is an element of economic theory and it forms the basis for modern…

Q: What is CAPM? How about APT?

A: CAPM and APT are two common models for pricing used in finance. These are explained below.

Q: What is materiality? Explain?

A: Materiality: The accounting concept which focusses that all the financial items and figures which…

Q: What is PNL?

A: The term PNL is used in accounting, finance, and business to refer profit and loss.

Q: Mamuțelerăit puiul de om

A: Mowgli, the human cub found by the wolves in 'The Jungle Book', is described as a very small and…

Q: What is alpha transfer?

A: The term ‘Alpha’ refers to the active return on investment. In other words, the excess return from…

Q: Define agent

A: Introduction: An agent is a party that has oral or written authority to perform for another…

Q: Define APR

A: Annual Percentage Rate (APR) is annual interest rate charged for borrowing money. APR is cost for…

Q: What is a CMO?

A: A collateralize mortgage obligation (CMO) refers to a type of mortgage-backed security that contains…

Q: I, J, K

A: i. Payment of interest would include an outflow of cash and also an increase in interest expense.

Q: Trying to find answer a through e

A: Since the question has more than 3 sub-parts, the first 3 subparts are answered. If you want the…

Q: what is materiality?

A: Materiality is an accounting concept that signifies the importance of an item to users of financial…

Q: Can you answer part E of this qu

A: Payroll taxes are defined as the amounts collected by the government or revenue collection authority…

Bad Debts

At the end of the accounting period, a financial statement is prepared by every company, then at that time while preparing the financial statement, the company determines among its total receivable amount how much portion of receivables is collected by the company during that accounting period.  

Accounts Receivable

The word “account receivable” means the payment is yet to be made for the work that is already done. Generally, each and every business sells its goods and services either in cash or in credit. So, when the goods are sold on credit account receivable arise which means the company is going to get the payment from its customer to whom the goods are sold on credit. Usually, the credit period may be for a very short period of time and in some rare cases it takes a year.