The following aging information pertains to ABC Company's accounts receivable at December 31, 2024: Days Outstanding Amount 0-30 31-60 61-120 Over 120 Estimated % Uncollectible $420,000 2% 140,000 5% 100,000 10% 120,000 20% During 2024, ABC wrote off $28,000 in receivables and recovered $6,000 that had been written off in prior years. ABC's December 31, 2023, allowance for uncollectible accounts was $70,000. Using the balance sheet approach, what amount of bad debt expense should ABC report at December 31, 2024? a. $6,000 ○ a. ○ b. $7,000 0 с. c. $1,400

The following aging information pertains to ABC Company's accounts receivable at December 31, 2024: Days Outstanding Amount 0-30 31-60 61-120 Over 120 Estimated % Uncollectible $420,000 2% 140,000 5% 100,000 10% 120,000 20% During 2024, ABC wrote off $28,000 in receivables and recovered $6,000 that had been written off in prior years. ABC's December 31, 2023, allowance for uncollectible accounts was $70,000. Using the balance sheet approach, what amount of bad debt expense should ABC report at December 31, 2024? a. $6,000 ○ a. ○ b. $7,000 0 с. c. $1,400

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 6MC: Prior to adjustments, Barrett Companys account balances at December 31, 2019, for Accounts...

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Prior to adjustments, Barrett Companys account balances at December 31, 2019, for Accounts Receivable and the related Allowance for Doubtful Accounts were 1,200,000 and 60,000, respectively. An aging of accounts receivable indicated that 106,000 of the December 31, 2019, receivables may be uncollectible. The net realizable value of accounts receivable at December 31, 2019, was: a. 1,034,000 b. 1,094,000 c. 1,140,000 d. 1,154,000
The following aging information pertains to Jacobsen Company's accounts receivable at December 31, 2024: Days Outstanding Amount Estimated % Uncollectible 0-30 $ 420,000 2% 31-60 140,000 5% 61-120 100,000 10% Over 120 120,000 20% During 2024, Jacobsen wrote off $18,000 in receivables and recovered $6,000 that had been written off in prior years. Jacobsen's December 31, 2023, allowance for uncollectible accounts was $40,000. Using the balance sheet approach, what amount of allowance for uncollectible accounts should Jacobsen report at December 31, 2024?
A summary of Klugman Company's December 31, 2024, accounts receivable aging schedule is presented below along with the estimated percent uncollectible for each age group: Age Group Amount % 0–60 days $ 70,000 0.5 61–90 days 27,000 1.0 91–120 days 4,000 10.0 Over 120 days 1,100 50.0 The allowance for uncollectible accounts had a balance of $1,500 on January 1, 2024. During the year, bad debts of $850 were written off. Required: Prepare all journal entries for 2024 with respect to bad debts and the allowance for uncollectible accounts. Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field.
6) Brotherhood Company had the following information relating to its accounts receivable: Accounts receivable, 12/31/21 1,300,000 Credit sales for 2022 5,400,000 4,750,000 125,000 Collections from customers for 2022, excluding recovery Accounts written off 9/30/22 Collection of accounts written off in prior year (customer credit was not reestablished) Estimated uncollectible receivable per aging of receivable at 12/31/22 25,000 165,000 On December 31, 2022, the amortized cost of accounts receivable is a. 1,825,000 b. 1,800,000 c. 1,635,000 d. 1,660,000
Trading Company prepared an aging of its accounts receivable on December 31, 2020and determined that the net realizable value of the Accounts Receivable was P2,500,000. Additional data is available as follows: •Allowance for bad debts, January 1 P 280,000 •Accounts written off as uncollectible 230,000• Accounts receivable, December 31 2,700,000 •Uncollectible accounts recovery 50,000 For the year ended December 31, 2017, what was the bad debts expense?
Required information [The following information applies to the questions displayed below.] Daley Company prepared the following aging of receivables analysis at December 31. Accounts receivable Percent uncollectible Total $ 630,000 0 $ 408,000 1% 1 to 30 $ 102,000 2% Days Past Due 31 to 60 $ 48,000 5% 61 to 90 $ 30,000 7% Over 90 $ 42,000 10% a. Complete the table below to calculate the estimated balance of Allowance for Doubtful Accounts using aging of accounts receivable. b. Prepare the adjusting entry to record bad debts expense using the estimate from part a. Assume the unadjusted balance in the Allowance for Doubtful Accounts is a $4,800 credit. c. Prepare the adjusting entry to record bad debts expense using the estimate from part a. Assume the unadjusted balance in the Allowance for Doubtful Accounts is a $1,300 debit.
Injae Trading Company prepared an aging of its accounts receivable on December 31, 2020 and determined that the net realizable value of the Accounts Receivable was P2,500,000. Additional data is available as follows: Allowance for bad debts, January 1 P 280,000 • Accounts written off as uncollectible 230,000 • Accounts receivable, December 31 2,700,000 • Uncollectible accounts recovery 50,000 For the year ended December 31, 2017, what was the bad debts expense? A. P 230,000 B. P200,000 C. P150,000 D. P100,000
At December 31, 2024, the Accounts Receivable balance of Advanced Automotive Technology is $155,000. The Allowance for Bad Debts account has a $7,080 debit balance. Advanced Automotive Technology prepares the following aging schedule for its accounts receivable: Data table Age of Accounts 1-30 Days 31-60 Days 61-90 Days Over 90 Days Accounts Receivable $60,000 $40,000 $50,000 $5,000 Estimated percent uncollectible 0.8% 4.0% 7.0% 52.0% Requirements 1. Journalize the year-end adjusting entry for bad debts on the basis of the aging schedule. Show the T-account for the Allowance for Bad Debts at December 31, 2024. 2. Show how Advanced Automotive Technology will report its net accounts receivable on its December 31, 2024, balance sheet. equirement 1. Journalize the year-end adjusting entry for bad debts on the basis of the aging schedule. Show the T-account for the Allowance for Bad Debts at…
Lyka Co. determined that the net value of its accounts receivable at December 31, 2020,based on an aging of the receivables, was P325,000. Additional information is as follows:Allowance for uncollectible accounts—1/1/20 30,000Uncollectible accounts written off during 2020 18,000Uncollectible accounts recovered during 2020 2,000Accounts receivable at 12/31/20 350,0001. For 2020, what would be Inge’s uncollectible accounts expense? __________ 2. At January 1, 2020, Jamin Co. had a credit balance of P260,000 in its allowance for uncollectible accounts. Based on past experience, 2% of Jamin’s credit sales have been uncollectible. During 2020 Jamin wrote off P325,000 of uncollectible accounts. Credit sales for 2020 were P9,000,000. In its December 31, 2020 balance sheet, what amount should Jamin report as allowance for uncollectible accounts? __________
Required information [The following information applies to the questions displayed below.] Daley Company prepared the following aging of receivables analysis at December 31. Days Past Due 31 to 60 $ 48,000 5% Accounts receivable Percent uncollectible Total $630,000 0 $ 408,000 1% 1 to 30 $ 102,000 2% 61 to 90 $ 30,000 7% Over 90 $ 42,000 10% a. Estimate the balance of the Allowance for Doubtful Accounts assuming the company uses 6% of total accounts receivable to estimate uncollectibles, instead of the aging of receivables method. b. Prepare the adjusting entry to record bad debts expense using the estimate from part a. Assume the unadjusted balance in the Allowance for Doubtful Accounts is a $13,200 credit. c. Prepare the adjusting entry to record bad debts expense using the estimate from part a. Assume the unadjusted balance in the Allowance for Doubtful Accounts is a $2,200 debit.
Omega Company prepared an aging of accounts receivable on December 31, 2018 and determined that the net realizable value of the accounts receivable was P2,500,000. Alow ance for uncolectible accounts on January 1 Accounts written off as uncollectible Accounts receivable on December 31 Uncollectible accounts recovery 280,000 230,000 2,700,000 50,000 What is the uncollectible accounts expense for the current year?
Taiju Company prepared an aging of accounts receivable on December 31, 2020 and determined that the net realizable value of the accounts receivable was P2,500,000. Additional information is available as follows: Allowance for doubtful accounts on Jan. 1 280,000 Accounts written off as uncollectible 230,000 Accounts receivable on December 31 2,700,000 Uncollectible accounts recovery 50,000 For the year ended December 31, 2020, what amount should be recognized as doubtful accounts expense?