Required information [The following information applies to the questions displayed below.] On December 31, Jarden Company's Allowance for Doubtful Accounts has an unadjusted credit balance of $14,500. Jarden prepares a schedule of its December 31 accounts receivable by age. Accounts Receivable $ 830,000 Age of Accounts Receivable Not yet due 1 to 30 days past due Expected Percent Uncollectible 1.25% 254,000 2.00 86,000 31 to 60 days past due 6.50 38,000 12,000 61 to 90 days past due Over 90 days past due 32.75 68.00 3. On June 30 of the next year, Jarden concludes that a customer's $4,750 receivable is uncollectible and the account is written off. Does this write-off directly affect Jarden's net income? Affects Jarden's net income
Required information [The following information applies to the questions displayed below.] On December 31, Jarden Company's Allowance for Doubtful Accounts has an unadjusted credit balance of $14,500. Jarden prepares a schedule of its December 31 accounts receivable by age. Accounts Receivable $ 830,000 Age of Accounts Receivable Not yet due 1 to 30 days past due Expected Percent Uncollectible 1.25% 254,000 2.00 86,000 31 to 60 days past due 6.50 38,000 12,000 61 to 90 days past due Over 90 days past due 32.75 68.00 3. On June 30 of the next year, Jarden concludes that a customer's $4,750 receivable is uncollectible and the account is written off. Does this write-off directly affect Jarden's net income? Affects Jarden's net income
Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter6: Cash And Receivables
Section: Chapter Questions
Problem 12E: Inferring Accounts Receivable Amounts At the end of 2019, Karras Inc. had a debit balance of 141,120...
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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.
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![Required information
[The following information applies to the questions displayed below.]
On December 31, Jarden Company's Allowance for Doubtful Accounts has an unadjusted credit balance of $14,500.
Jarden prepares a schedule of its December 31 accounts receivable by age.
Accounts
Receivable
$ 830,000
Age of Accounts Receivable
Not yet due
1 to 30 days past due
Expected Percent
Uncollectible
1.25%
254,000
2.00
86,000
31 to 60 days past due
6.50
38,000
12,000
61 to 90 days past due
Over 90 days past due
32.75
68.00
3. On June 30 of the next year, Jarden concludes that a customer's $4,750 receivable is uncollectible and the account is written off.
Does this write-off directly affect Jarden's net income?
Affects Jarden's net income](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fd454a5f6-6027-4a7a-b00e-0ab6e42ed879%2Fff92409d-f984-4905-b191-8ae41fb783c4%2Fxdidmzr_processed.png&w=3840&q=75)
Transcribed Image Text:Required information
[The following information applies to the questions displayed below.]
On December 31, Jarden Company's Allowance for Doubtful Accounts has an unadjusted credit balance of $14,500.
Jarden prepares a schedule of its December 31 accounts receivable by age.
Accounts
Receivable
$ 830,000
Age of Accounts Receivable
Not yet due
1 to 30 days past due
Expected Percent
Uncollectible
1.25%
254,000
2.00
86,000
31 to 60 days past due
6.50
38,000
12,000
61 to 90 days past due
Over 90 days past due
32.75
68.00
3. On June 30 of the next year, Jarden concludes that a customer's $4,750 receivable is uncollectible and the account is written off.
Does this write-off directly affect Jarden's net income?
Affects Jarden's net income
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