E5.17Preparing an Aging Schedule. East Bay Inc. uses the aging method to estimate the company's bad debtexpense. Mark Evans, the president of the company, collected information about the company's outstandingaccounts receivable and their probability of collection:TA 4Probability ofNon-CollectionAccount AgeAmount0-30 days.31-60 days.61-90 days.91-120 days.Over 120 days$600,000300,000150,0000.75%....2.003.0090,0005.0050,00030.00Calculate the allowance for uncollectible accounts for East Bay, Inc., the total balance in accounts receivable,and the net realizable value of the company's accounts receivable. Assume that East Bay, Inc. adopts a policyof writing off as worthless all unpaid accounts receivable over 120 days old. How will implementation of thispolicy impact the net realizable value of the company's accounts receivable? Why?

Given, Accounts receivable with their age Estimated Uncollectible (%) With this given…

E5.17 Preparing an Aging Schedule. East Bay Inc. uses the aging method to estimate the company's bad debt expense. Mark Evans, the president of the company, collected information about the company's outstanding accounts receivable and their probability of collection: Probability of Non-Collection Account Age Amount 0-30 days. 31-60 days. 61-90 days. 91-120 days. Over 120 days $600,000 300,000 150,000 90,000 50,000 0.75% 2.00 3.00 5.00 30.00 Calculate the allowance for uncollectible accounts for East Bay, Inc., the total balance in accounts receivable, and the net realizable value of the company's accounts receivable. Assume that East Bay, Inc. adopts a policy of writing off as worthless all unpaid accounts receivable over 120 days old. How will implementation of this policy impact the net realizable value of the company's accounts receivable? Why?

E5.17 Preparing an Aging Schedule. East Bay Inc. uses the aging method to estimate the company's bad debt expense. Mark Evans, the president of the company, collected information about the company's outstanding accounts receivable and their probability of collection: Probability of Non-Collection Account Age Amount 0-30 days. 31-60 days. 61-90 days. 91-120 days. Over 120 days $600,000 300,000 150,000 90,000 50,000 0.75% 2.00 3.00 5.00 30.00 Calculate the allowance for uncollectible accounts for East Bay, Inc., the total balance in accounts receivable, and the net realizable value of the company's accounts receivable. Assume that East Bay, Inc. adopts a policy of writing off as worthless all unpaid accounts receivable over 120 days old. How will implementation of this policy impact the net realizable value of the company's accounts receivable? Why?

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

why is my answer not complete?
solve this please
solve this please
Tammany Professional Engineers uses the Percentage of Receivables method to account for bad debt. The following is a summary of Tammany’s Accounts Receivable Aging Report. Cash Sales $42,000 Credit Sales $21,000 Allowance for Uncollectible Accounts December 31, 2020 $4,375 Current > 30 >60 >90 $115,000 $98,000 $75,000 $15,000 Estimated Uncollectible 1% 2% 4% 5% Required: Prepare the total estimate of uncollectible accounts and give the amount of the required adjustment. Do not prepare a journal entry. Please show your work if possible. In addition to submitting your answer here, you should also write it down so you an use it for the next problem.
Please help me to solve this problem
I'm not so sure about my answer please help me.....
Twilight Company uses the aging of accounts recelvable method to estimate Bad Debt Expense. The balance of each account receivable is aged on the basis of three categories as follows: (1) 1-30 days old, (2) 31-90 days old, and (3) more than 90 days old. Based on experience, management has estimated what portion of recelvables of a specific age will not be paid as follows: (1) 2%, (2) 13%, and (3) 34%, respectively. At December 31, 2019, the unadjusted credit balance in the Allowance for Doubtful Accounts was $150. The total Accounts Receivable in each age category were: (1) 1-30 days old, $58,000, (2) 31-90 days old, $19,000, and (3) more than 90 days old, $3,000. Required: a. Calculate the estimate of uncollectible accounts at December 31, 2019. b. Prepare the appropriate adjusting entry dated December 31, 2019.
Casilda Company uses the aging approach to estimate bad debt expense. The ending balance of each account receivable is aged on the basis of three time periods as follows: (1) not yet due, $51,300; (2) up to 180 days past due, $14,800; and (3) more than 180 days past due, $5,000. Experience has shown that for each age group, the average loss rate on the amount of the receivables at year-end due to uncollectibility is (1) 4 percent, (2) 13 percent, and (3) 31 percent, respectively. At December 31, the end of the current year, the Allowance for Doubtful Accounts balance is $100 (credit) before the end-of-period adjusting entry is made. Required: 1. Prepare the appropriate bad debt expense adjusting entry for the current year. 2. Show how the various accounts related to accounts receivable should be shown on the December 31, current year, balance sheet. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Show how the various accounts related to accounts…
Wohoo Publishers uses the allowance method to estimate uncollectible accounts receivables. The company produced the following aging of the accounts receivable at year-end (Y in thousands). Accounts receivable % uncollectible Estimated bad debts Total 200,000 0-30 days 77,000 2% 31-60 days 46,000 5% 61-90 days 91-120 days 39,000 6% 23,000 10% Over 120 days 15,000 25%
Haresh
Current Attempt in Progress * Your answer is incorrect. Crane Inc. has evaluated its process of calculating estimates of uncollectible accounts receivable. In the past, Crane calculated the Bad Debt Expense as a percentage of sales. It recorded Bad Debt Expense at 1% of sales. Due to changes in the economic conditions, Crane will increase that percentage to 3%. The change is made on January 1, 2025. Salles in 2023 were $1630000 and $3130000 in 2024. Sales in 2025 total $4130000. What is the Bad Debt Expense that Crane will record for 2025? $159100 Ⓒ $217800 O $41300 O $123900 e Textbook and Media Save for Later Attempts: 1 of 2 used Submit Answer
12/31/2020: During 2020, $10,000 in accounts receivable were written off. At the end of the second year of operations, Yolandi Company had $1,000,000 in sales and accounts receivable of $400,000. Yolandi’s management has estimated that $17,000 in accounts receivable would be uncollectible. Bad debt expense Allowance for doubtful accounts For the end of 2020, what is the company’s net realizable value?