Intermediate Accounting
3rd Edition
ISBN: 9780136912644
Author: Elizabeth A. Gordon; Jana S. Raedy; Alexander J. Sannella
Publisher: Pearson Education (US)
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Textbook Question
Chapter 9, Problem 9.4E
Giaraldi Garden Products: Aged Schedule of Accounts Receivable
| Past Due | ||||||
| Customer | Current | 1-30 Days | 31-60 Days | 61-90 Days | Over 90 Days | Totals |
| Carey Company | $ 10,000 | $34,500 | $ 44.500 | |||
| Gibson, Ltd | $423,000 | $ 27000 | 450,000 | |||
| KW Quarterly | 33,000 | $ 67,000 | 1,500 | 101,500 | ||
| Onix Construction | 100,000 | 45,000 | 90,500 | 235,500 | ||
| Carpenter Lumber | 387.000 | 125,000 | 500 | 512,500 | ||
| Totals | $810,000 | $185,000 | $167,000 | $55,000 | $127,000 | $1,344,000 |
The company estimated an allowance for uncollectible accounts based on the following estimates
| Aging Category | Allowance Provided |
| Current | 3% |
| 1 -30 days past due | 6 |
| 31-60 days past due | 18 |
| 61-90 days past due | 45 |
| Over 90 days past due | 100 |
Giaraldi reported net credit sales of $18,500,000 for the current year. We present the company’s of accounts receivable and the allowance for uncollectible accounts:
Required
- a. Compute the balance required in the allowance for uncollectible accounts at the end of the year.
- b. Prepare the journal entry to record the bad debt provision for the current year.
- c. Independent of your answer to part (b) prepare the journal entry to record the bad debt provision for the current year assuming that the allowance for uncollectible accounts had a $30,000 debit balance.
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Students have asked these similar questions
Customer
Bad Debt Expense, Aging of Accounts Receivable, Journal Entry.
Giaraldi Garden Products, Inc. developed an aged schedule of accounts receivable at the end of each year.
Giaraldi Garden Products: Aged Schedule of Accounts Receivable
Past Due
Current 1-30 Days 31-60 Days 61-90 Days Over 90 Days
The company estimated an allowance for uncollectible accounts based on the following estimates:
Aging Category
Current
Allowance Provided
3%
1-30 days past due
6%
31-60 days past due
18%
Totals
61-90 days past due
45%
Carey Company
$
10,000 $
34,500 $
44,500
Over 90 days past due
100%
Gibson, Ltd.
$
423,000 $
27,000
450,000
KW Quarterly
Onix Construction
33,000 $ 67,000
100,000
1,500
101,500
Giaraldi reported for the current year:
45,000
Carpenter Lumber
Totals
387,000
$
125,000
810,000 $ 185,000 $ 167,000 $
90,500
500
235,500
512,500
Net credit sales
$
18,500,000
55,000 $ 127,000 $ 1,344,000
The company's ending balances of accounts receivable and the allowance for uncollectible accounts…
Renta
Public Image, a firm specializing in marketing and publicity services, uses the balance sheet ap-
proach to estimate uncollectible accounts expensc. At year-end an aging of the accounts receiv- Aging Accounts
able produced the following classification:
PROBLEM 7.5
Receivable; Write-offs
LO 5
Not yet due
1-30 days past due
$333,000
135,000
31-60 days past due
58,500
61-90 days past due
13,500
Over 90 days past due
22,500
Total
$562,500
On the basis of past experience, the company estimated the percentages probably uncollectible
for the above five age groups to be as follows: Group I, 1%; Group 2, 3%; Group 3, 10%; Group 4,
20%; and Group 5, 50%.
The Allowance for Doubtful Accounts before adjustment at December 31 showed a credit bal-
ance of $8,100.
Instructions
& Compute the estimated amount of uncollectible accounts based on the above classification by
age groups.
6. Prepare the adjusting entry needed to bring the Allowance for Doubtful Accounts to the proper
amount.
C. Assume…
ข้อ1 Sammy’s Downtown Properties developed an aged schedule of accounts receivable at the end of each year.Sammy’s Downtown Properties: Aged Schedule of Accounts Receivable
(In the picture)
The company estimated an expected credit loss based on the following rules:Aging Category Probability of CollectionCurrent 4%1-30 Days 8%31-60 Days 10%61-90 Days 35%Over 90 Days 50%Sammy’s reported net credit sales of 4,500,000 for the current year. We present the company’s ending balancesof accounts receivable and the credit loss allowance below: Accounts ReceivableEnding Balance 587,400 Credit loss allowance 120,000 Unadjusted Ending…
Chapter 9 Solutions
Intermediate Accounting
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