KOn December 31 of the current year, Jerome Company has an accounts receivable balance of $324,000 before any year - end adjustments. The Allowance for Doubtful Accounts has a $1,500 credit balance. The company prepares the following aging schedule for accountsreceivable:1-30 days$157,0001%31-60days$83,0002%61 - 90days$60,0005%over 90 days$24,00022%What is the Allowance for Uncollectible Accounts at December 31 of the current year after adjustments?Total Balance$324,000Percent uncollectibleOA. $10,010OB. $11,510OC. $1,500OD. $13,0107

Accounts receivables are those customer accounts to whom business has made credit sales on account,…

On December 31 of the current year, Jerome Company has an accounts receivable balance of $324,000 before any year-end adjustments. The Allowance for Doubtful Accounts has a $1,500 credit balance. The company prepares the following aging schedule for accounts K- receivable Total Balance 31-60 days $83,000 2% 1-30 days $157,000 1% 61-90 days $60,000 5% $324,000 Percent uncollectible. What is the Allowance for Uncollectible Accounts at December 31 of the current year after adjustments? OA. $10,010 OB. $11,510 OC. $1,500 OD. $13,010 over 90 days i $24,000 22% D

On December 31 of the current year, Jerome Company has an accounts receivable balance of $324,000 before any year-end adjustments. The Allowance for Doubtful Accounts has a $1,500 credit balance. The company prepares the following aging schedule for accounts K- receivable Total Balance 31-60 days $83,000 2% 1-30 days $157,000 1% 61-90 days $60,000 5% $324,000 Percent uncollectible. What is the Allowance for Uncollectible Accounts at December 31 of the current year after adjustments? OA. $10,010 OB. $11,510 OC. $1,500 OD. $13,010 over 90 days i $24,000 22% D

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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A year-end review of Accounts Receivable and estimated uncollectible percentages revealed the following: Days Outstanding 1-30 days 31-60 days 61-90 days Over 90 days Accounts Est. Percent Receivable Uncollectible $65,000 3% $43,000 5% $25,000 10% $6,000 52% Before the year-end adjustment, the credit balance in Allowance for Uncollectible Accounts was $700. Under the aging-of-receivables method, the balance in the Allowance for Uncollectible Accounts will be after the adjusting entry is made. OA. $9,020 OB. $1,250 OC. $10,420 OD. $9,720
Glencoe Supply had the following accounts receivable aging schedule at the end of a recent year. The balance in Glencoe’s allowance for doubtful accounts at the beginning of the year was$58,620 (credit). During the year, accounts in the total amount of $62,400 were written off.Required:1. Determine bad debt expense.2. Prepare the journal entry to record bad debt expense.3. If Glencoe had written off $90,000 of receivables as uncollectible during the year, how muchwould bad debt expense reported on the income statement have changed?
Use the following information for the next two questions: ABC Co. has the following information on December 31, 20x1 before any year-end adjustments. Net credit sales Accounts receivable, December Allowance for doubtful accounts, Dec. 31 (before any necessary year-end adjustments) Percentage of credit sales The aging of receivables is shown below: Days outstanding 0 - 60 61 - 120 Over 120 Total accounts receivables a. 12,600 b. 18,900 c. 19,200 d. 23,400 Receivable balances 378,000 283,500 315,000 976,500 a. 123,300 b. 128,700 c. 143,300 d. 132,300 6,300,000 976,500 53,550 2% Additional information: ABC Co. uses the percentage of credit sales in determining bad debts in monthly financial reports and the aging of receivables for its annual financial statements. Accounts written-off during the year amounted to P119,700 and accounts recovered amounted to P28,350. As of December 31, ABC Co. determined that P63,000 accounts receivable from a certain customer included in the "61-120 days…
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Indiana Bones, Inc., has the following account balances at the end of the year before adjustments: Accounts Receivable $60,000 Allowance for Doubtful Accounts $800 credit balance Sales $900,000 Doubtful Accounts Expense 0 Management estimates that 11% of accounts receivable will be uncollectible. After the correct adjusting entry has been made, Doubtful Accounts Expense on the income statement for the year equals:
The ADA has the below table regarding its account receivable: Age of Accounts Balance, June 30 Estimated Percentage Uncollectible 1-30 days $130,000 2.00% 31-60 days 70,000 5.00% 61-90 days 32,500 20.00% Over 90 days 3,000 50.00% If the opening balance of Allowance for Doubtful accounts is $7,050, the entries to record estimated uncollectible receivables this year will be: Select one: a. Bad debt expense $7,050 Allowance for doubtful accounts $7,050 b. Allowance for doubtful accounts $14,100 Account receivable $14,100 c. Bad debt expense $14,100 Allowance for doubtful accounts $14,100 d. Account receivable $7,100 Bad debt expense $7,100
At the end of the year, a company has a balance in Allowance for Uncollectible Accounts of $220 (credit) before any year-end adjustment. The balance of Accounts Receivable is $15,900. The company estimates that 14% of accounts receivable will not be collected over the next year. Record the adjustment for uncollectible accounts. (If no entry is required for a particular transaction/event, select "No Journal Entry Required" in the first account field.) View transaction list Journal entry worksheet 1 Record the adjustment for uncollectible accounts. Note: Enter debits before credits. Event General Journal Debit Credit 30 F3 888 F7 F9 F10 # 2$ % & 3 4 6 7 8 9. E R Y P { F K L < ? C V alt command option + || .. .. | H
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. XYZ’s management has estimated that 1.5% of sales will be uncollectible. For the end of 2020, after the adjusting entry for bad debts was journalized, what is the balance in the following accounts: Bad debt expense: Allowance for doubtful accounts: For the end of 2020, what is the company's net realizable value?
On December 31, Jarden Company's Allowance for Doubtful Accounts has an unadjusted credit balance of $14,000. Jarden prepares a schedule of its December 31 accounts receivable by age. Accounts Expected Percent Uncollectible Receivable $ 800,000 320,000 64, 000 32,000 12,800 Age of Accounts Receivable Not yet due 1 to 30 days past due 31 to 60 days past due 61 to 90 days past due Over 90 days past due 1.30% 2.05 6.55 33.00 69.00 Problem 7-3A (Algo) Part 3 3. On June 30 of the next year, Jarden concludes that a customer's $5,000 receivable is uncollectible and the account is written off. Does this write-off directly affect Jarden's net income? Does this write-off directly affect Jarden's net income?
Warner Company’s year-end unadjusted trial balance shows accounts receivable of $115,000, allowance for doubtful accounts of $760 (credit), and sales of $440,000. Uncollectibles are estimated to be 1.50% of accounts receivable. Prepare the December 31 year-end adjusting entry for uncollectibles. What amount would have been used in the year-end adjusting entry if the allowance account had a year-end unadjusted debit balance of $1,100?
At the beginning of current year, ABC company reported that the allowance for doubtful account has a acredit balance of $170,000. The company uses the aging of accounts receivable as a way to estimate the allowance The following schedule was prepared: Not yet due $1,700,000 NL uncollectible1-30 days pasat due $1,200,000 5% uncollectible31-60 days past due $100,000 25% uncollectible61-90 days past due $150,000 50% uncollectibleover 90 days past due. $120,000 100% uncollectible Questions:1) What is the required allowance for doubtful accounts at year-end?2) How much would be the doubtful accounts expense for the current year?3) What is the adjusting entry for the doubtful accounts expense for the current year?4) What is the net realizable value of accounts receivable at year-end?5) What is the effect on current assets should the adjustment was not made?
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