Financial & Managerial Accounting
13th Edition
ISBN: 9781285866307
Author: Carl Warren, James M. Reeve, Jonathan Duchac
Publisher: Cengage Learning
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Chapter 8, Problem 8.12EX
To determine
Analysis of receivables method:
A method of determining the estimated uncollectible receivables based on the age of individual accounts receivable is known as analysis of receivables method. This method is otherwise known as aging of receivables method. Under analysis of receivables method, estimated
To Journalize: The
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adjustment for Uncollectible Accounts
Kirchhoff Industries has computed that the proper balance for the Allowance for Doubtful Accounts at August 31 is $66,683. Assume that the allowance for doubtful accounts for Kirchhoff Industries has a credit balance of $14,005 before adjustment on August 31.
Journalize the adjusting entry for uncollectible accounts as of August 31.
August 31=
The Fortune Company uses allowance method to recognize uncollectible accounts expense. It provides you the following selected information, Accounts receivable on December 31 2017, RO380,000,Required balance in Allowance for Doubtful Accounts account on December 31, 2017 RO3,000,Existing balance in Allowance for Doubtful Accounts account on December 31, 2017 RO2,500,The journal entry to recognize uncollectible accounts expense on December 31, 2017 is:
a.
Dr. Accounts Receivable 2500 Cr Allowance for Uncollectible Accounts Expense 2500
b.
Dr Uncollectible Accounts Expense 3000 Cr Allowance for Doubtful Accounts 3000
c.
Dr. Accounts Receivable 2500 Cr Uncollectible Accounts Expense 2500
d.
Dr Uncollectible Accounts Expense 500 & Cr Allowance for Doubtful Accounts 500
Adjustment for Uncollectible Accounts
Kirchhoff Industries has computed that the proper balance for the Allowance for Doubtful Accounts at August 31 is $79,873. Assume that the allowance for doubtful accounts for Kirchhoff Industries has a credit balance of $16,775 before adjustment on August 31.
Journalize the adjusting entry for uncollectible accounts as of August 31. If an amount box does not require an entry, leave it blank.
Aug. 31
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Chapter 8 Solutions
Financial & Managerial Accounting
Ch. 8 - What are the three classifications of receivables?Ch. 8 - Dans Hardware is a small hardware store in the...Ch. 8 - What kind of an account (asset, liability, etc.)...Ch. 8 - After the accounts are adjusted and closed at the...Ch. 8 - A firm has consistently adjusted its allowance...Ch. 8 - Which of the two methods of estimating...Ch. 8 - Neptune Company issued a note receivable to...Ch. 8 - Prob. 8DQCh. 8 - The maker of a 240,000, 6%, 90-day note receivable...Ch. 8 - The note receivable dishonored in Discussion...
Ch. 8 - Prob. 8.1APECh. 8 - Prob. 8.1BPECh. 8 - Prob. 8.2APECh. 8 - Prob. 8.2BPECh. 8 - Prob. 8.3APECh. 8 - Prob. 8.3BPECh. 8 - Analysis of receivables method At the end of the...Ch. 8 - Prob. 8.4BPECh. 8 - Prob. 8.5APECh. 8 - Note receivable Prefix Supply Company received a...Ch. 8 - Prob. 8.6APECh. 8 - Prob. 8.6BPECh. 8 - Classifications of receivables Boeing is one of...Ch. 8 - Prob. 8.2EXCh. 8 - Entries for uncollectible accounts, using direct...Ch. 8 - Prob. 8.4EXCh. 8 - Prob. 8.5EXCh. 8 - Prob. 8.6EXCh. 8 - Number of days past due Toot Auto Supply...Ch. 8 - Aging of receivables schedule The accounts...Ch. 8 - Estimating allowance for doubtful accounts Waddell...Ch. 8 - Prob. 8.10EXCh. 8 - Prob. 8.11EXCh. 8 - Prob. 8.12EXCh. 8 - Entries for bad debt expense under the direct...Ch. 8 - Entries for bad debt expense under the direct...Ch. 8 - Prob. 8.15EXCh. 8 - Effect of doubtful accounts on net income Using...Ch. 8 - Prob. 8.17EXCh. 8 - Prob. 8.18EXCh. 8 - Prob. 8.19EXCh. 8 - Prob. 8.20EXCh. 8 - Entries for notes receivable The series of seven...Ch. 8 - Prob. 8.22EXCh. 8 - Entries for receipt and dishonor of note...Ch. 8 - Prob. 8.24EXCh. 8 - Prob. 8.25EXCh. 8 - Accounts receivable turnover and days' sales in...Ch. 8 - Prob. 8.27EXCh. 8 - Accounts receivable turnover and days' sales in...Ch. 8 - Prob. 8.29EXCh. 8 - Allowance method entries The following...Ch. 8 - Aging of receivables; estimating allowance for...Ch. 8 - Compare two methods of accounting for...Ch. 8 - Prob. 8.4APRCh. 8 - Notes receivable entries The following data relate...Ch. 8 - Sales and notes receivable transactions The...Ch. 8 - Allowance method entries The following...Ch. 8 - Prob. 8.2BPRCh. 8 - Compare two methods of accounting for...Ch. 8 - Prob. 8.4BPRCh. 8 - Notes receivable entries The following data relate...Ch. 8 - Sales and notes receivable transactions The...Ch. 8 - Ethics and professional conduct in, business Bev...Ch. 8 - Prob. 8.2CPCh. 8 - Prob. 8.3CPCh. 8 - Prob. 8.4CPCh. 8 - Prob. 8.5CP
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- Using the data in Exercise 9-11, assume that the allowance for doubtful accounts for Selbys Bike Co. had a debit balance of 7,200 as of December 31, 2016. Journalize the adjusting entry for uncollectible accounts as of December 31, 2016. Journalize the adjusting entry for uncollectible accounts as of December 31, 2016. Selbys Bike Co. is a wholesaler of motorcycle supplies. An aging of the companys accounts receivable on December 31, 2016, and a historical analysis of the percentage of uncollectible accounts in each age category are as follows: Estimate what the proper balance of the allowance for doubtful accounts should be as of December 31, 2016.arrow_forwardUsing data in Exercise 9-9, assume that the allowance for doubtful accounts for Waddell Industries has a credit balance of 6,350 before adjustment on August 31. Journalize the adjusting entry for uncollectible accounts as of August 31. Waddell Industries has a past history of uncollectible accounts, as follows. Estimate the allowance for doubtful accounts, based on the aging of receivables schedule you completed in Exercise 9-8. The accounts receivable clerk for Waddell Industries prepared the following partially completed aging of receivables schedule as of the end of business on August 31: The following accounts were unintentionally omitted from the aging schedule and not included in the preceding subtotals: a. Determine the number of days past due for each of the preceding accounts as of August 31. b. Complete the aging of receivables schedule by adding the omitted accounts to the bottom of the schedule and updating the totals.arrow_forwardHardys Landscape Services total revenue on account for 2018 amounted to 273,205. The company, which uses the allowance method, estimates bad debts at percent of total revenue on account. Required Journalize the following selected entries: 2012 Dec. 12Record services performed on account for E. E. Morton, 245. 31Record the adjusting entry for Bad Debts Expense. 31Record the closing entry for Bad Debts Expense. 2013 Feb. 18Write off the account of E. E. Morton as uncollectible, 245. Check Figure Adjusting entry amount, 1,366.03arrow_forward
- The Fortune Company uses allowance method to recognize uncollectible accounts expense. It provides you the following selected information: ● Accounts receivable on December 31, 2017: RO380000 ● Required balance in Allowance for Doubtful Accounts account on December 31, 2017: RO3000 ● Existing balance in Allowance for Doubtful Accounts account on December 31, 2017: RO2500 The journal entry to recognize uncollectible accounts expense on December 31, 2017 is: a. Dr Uncollectible Accounts Expense 500 & Cr Allowance for Doubtful Accounts 500 b. Dr Uncollectible Accounts Expense 3,000 & Cr Allowance for Doubtful Accounts 3,000 c. Dr. Accounts Receivable 2500 Cr Uncollectible Accounts Expense 2500 d. Dr. Accounts Receivable 2500 Cr Allowance for Uncollectible Accounts Expense 2500arrow_forwardThe allowance method of estimating uncollectible accounts receivable based on an analysis of receivables shows that $656 of accounts receivable are uncollectible. Allowance for Doubtful Accounts has a debit balance of $193. The adjusting entry at the end of the year will include a credit to Allowance for Doubtful Accounts in the amount of Oa. $849 Ob. $656 Oc. $193 Od. $463arrow_forward3. Estimate the allowance for doubtful accounts, based on the aging of receivables schedule. 4. Assume that the allowance for doubtful accounts for Trophy Fish Company has a debit balance of $4,400 before adjustment on December 31. Journalize the adjusting entry for uncollectible accounts. Refer to the Chart of Accounts for exact wording of act titles.arrow_forward
- Entry for Uncollectible Accounts Performance Bike Co. has determined that the proper balance for the Allowance for Doubtful Accounts at December 31 is $23,727. Assume that the allowance for doubtful accounts for Performance Bike Co. had a debit balance of $4,270 as of December 31. Journalize the adjusting entry for uncollectible accounts as of December 31.arrow_forwardWinfrey Designs had an unadjusted credit balance in its Allowance for Doubtful Accounts at December 31, 2023, of $2,200 Required: a. Prepare the adjusting entry assuming that Winfrey estimates uncollectible accounts based on an aging analysis as follows. December 31, 2023 Accounts Receivable $148,000 43,000 10,000 2,400 View transaction list Journal entry worksheet < 1 Age of Accounts Receivable Not due (under 30 days) 1 to 30 days past due 31 to 60 days past due Over 60 days past due Record the estimate for uncollectible accounts. Note: Enter debits before credits. Date December 31, 3332 General Journal Expected Percentage Debit Uncollectible 1% 4% 10% 60% Credit ☆arrow_forwardAdjustment for Uncollectible Accounts Kirchhoff Industries has computed that the proper balance for the Allowance for Doubtful Accounts at August 31 is $131,712. Assume that the allowance for doubtful accounts for Kirchhoff Industries has a credit balance of $10,112 before adjustment on August 31. Journalize the adjusting entry for uncollectible accounts as of August 31. If an amount box does not require an entry, leave it blank. Aug. 31 Bad Debt Expense Allowance for Doubtful Accountsarrow_forward
- Allowance for Doubtful Accounts has a credit balance of $667 at the end of the year (before adjustment), and an analysis of accounts in the customer ledger indicates the estimated amount of uncollectible accounts should be $17,457. Based on this estimate, which of the following adjusting entries should be made? Select the correct answer. debit Bad Debt Expense, $16,790; credit Allowance for Doubtful Accounts, $16,790 debit Allowance for Doubtful Accounts, $667; credit Bad Debt Expense, $667 debit Allowance for Doubtful Accounts, $18,124; credit Bad Debt Expense, $18,124 debit Bad Debt Expense, $667; credit Allowance for Doubtful Accounts, $667arrow_forwardAnalysis of Receivables Method At the end of the current year, Accounts Recelvable has a balance of $465,000; Allowance for Doubtful Accounts has a debit balance of $4,000; and sales for the year total $2,090,000. Using the aging method, the balance of Allowance for Doubtful Accounts is estimated as $18,400. a. Determine the amount of the adjusting entry for uncollectible accounts. b. Determine the adjusted balances of Accounts Receivable, Allowance for Doubtful Accounts, and Bad Debt Expense. Accounts Receivable Allowance for Doubtful Accounts Bad Debt Expense C. Determine the net realizable value of accounts receivable.arrow_forwardAnalysis of Receivables Method At the end of the current year, Accounts Receivable has a balance of $735,000; Allowance for Doubtful Accounts has a credit balance of $6,500; and sales for the year total $3,310,000. Using the aging method, the balance of Allowance for Doubtful Accounts is estimated as $28,600. a. Determine the amount of the adjusting entry for uncollectible accounts.$ b. Determine the adjusted balances of Accounts Receivable, Allowance for Doubtful Accounts, and Bad Debt Expense. Accounts Receivable $ Allowance for Doubtful Accounts $ Bad Debt Expense $ c. Determine the net realizable value of accounts receivable.$arrow_forward
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