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 9.6E
| Past Due | ||||||
| Customer | Current | 1-30 Days | 31-60 Days | 61-90 Days | Over 90 Days | Totals |
| Crosby Consultants | $120,000 | $45,000 | $3,000 | $168,000 | ||
| Whitemann Company | 4,000 | 18,500 | $ 68,000 | 90,500 | ||
| Lite Laser Products | 29.500 | 45,700 | $13,900 | 196.900 | 286,000 | |
| Dual Power Industries | 31,800 | 11,100 | 42,900 | |||
| Totals | $124,000 | $74,500 | $67200 | $45,700 | $276,000 | $587,400 |
The company estimated an allowance for uncollectible accounts based on the following estimates
| Aging Category | Allowance Provided | ||
| Current | 4% | ||
| 1-30 days past due | 8 | ||
| 31-60 days past due | 10 | ||
| 61-90 days past due | 35 | ||
| Over days past due | 50 | ||
Sammy’s reported net credit sales of $4,500,000 for the current year. We present the company’s ending balances of accounts receivable and the allowance for uncollectible accounts
Required
- a. Compute the balance required in the allowance for uncollectible accounts.
- 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 $7,435 debit balance.
- d. Using your solution to parts (a) and (b), indicate how Sammy’s will report its accounts receivable on the company’s year-end balance sheet.
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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
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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…
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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
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31-60 days past due
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Onix Construction
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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
$
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The company's ending balances of accounts receivable and the allowance for uncollectible accounts…
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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…
Chapter 9 Solutions
Intermediate Accounting
Ch. 9 - Prob. 9.1QCh. 9 - Do companies always classify cash as a current...Ch. 9 - Prob. 9.3QCh. 9 - Do accountants typically measure accounts...Ch. 9 - Under the allowance method, will the actual...Ch. 9 - How does an entity record a subsequent recovery of...Ch. 9 - Does the aging of accounts receivable method of...Ch. 9 - What is the difference between pledging accounts...Ch. 9 - How do companies account for receivables that are...Ch. 9 - Is the face value of a note receivable exchanged...
Ch. 9 - What do firms use to record the sales value of a...Ch. 9 - Explain why a company must have highly effective...Ch. 9 - The following are held by YRT Corporation at...Ch. 9 - Fernandez Company had an accounts receivable...Ch. 9 - On its December 31, Year 2, balance sheet, Red...Ch. 9 - Stanberry Company sold 500,000 of net accounts...Ch. 9 - On November 30, Year 1, Derin Corporation agreed...Ch. 9 - Which of the following disclosures about accounts...Ch. 9 - Prob. 9.1BECh. 9 - Prob. 9.2BECh. 9 - Prob. 9.3BECh. 9 - Prob. 9.4BECh. 9 - Prob. 9.5BECh. 9 - Sales Discounts, Most-Likely-Amount Method. On...Ch. 9 - Allowance for Uncollectible Accounts, Write-Off....Ch. 9 - Allowance for Uncollectible Accounts, Write-Off....Ch. 9 - Allowance for Uncollectible Accounts, Recovery....Ch. 9 - Bad Debt Expense, Journal Entry. Paul Anchor...Ch. 9 - Bad Debt Expense. Journal Entry. Paul Anchor,...Ch. 9 - Bad Debt Expense, Aging of Accounts Receivable,...Ch. 9 - Bad Debt Expense, Aging of Accounts Receivable,...Ch. 9 - Prob. 9.14BECh. 9 - Prob. 9.15BECh. 9 - Assigned Receivables. Using the information...Ch. 9 - Factoring Receivables without Recourse. Nicks...Ch. 9 - Prob. 9.18BECh. 9 - Prob. 9.19BECh. 9 - Prob. 9.20BECh. 9 - Prob. 9.21BECh. 9 - Prob. 9.22BECh. 9 - Internal Controls. Identify whether the following...Ch. 9 - Prob. 9.24BECh. 9 - Prob. 9.25BECh. 9 - Prob. 9.26BECh. 9 - Prob. 9.27BECh. 9 - Prob. 9.28BECh. 9 - Prob. 9.1ECh. 9 - Volume Discounts, Sales Discounts. Sodesta Company...Ch. 9 - Allowance for Uncollectible Accounts, Journal...Ch. 9 - Bad Debt Expense, Aging of Accounts Receivable....Ch. 9 - Bad Debt Expense, Write-Offs, Journal Entry....Ch. 9 - Bad Debt Expense, Aging of Accounts Receivable,...Ch. 9 - Bad Debt Expense, Aging of Accounts Receivable,...Ch. 9 - Bad Debt Expense, Percentage of Accounts...Ch. 9 - Prob. 9.9ECh. 9 - Assigning Receivables, Factoring Receivables....Ch. 9 - Prob. 9.11ECh. 9 - Factoring Receivables with and without Recourse....Ch. 9 - Factoring Receivables without Recourse, Factoring...Ch. 9 - Prob. 9.14ECh. 9 - Prob. 9.15ECh. 9 - Prob. 9.16ECh. 9 - Prob. 9.17ECh. 9 - Prob. 9.18ECh. 9 - Allowance for Uncollectible Accounts, Journal...Ch. 9 - Prob. 9.2PCh. 9 - Prob. 9.3PCh. 9 - Prob. 9.4PCh. 9 - Bad Debt Expense, Aging of Accounts Receivable....Ch. 9 - Bad Debt Expense, Aging of Accounts Receivable,...Ch. 9 - Prob. 9.7PCh. 9 - Prob. 9.8PCh. 9 - Aging of Accounts Receivable, Write-Offs,...Ch. 9 - Disclosure. Using the transactions listed in P9-9,...Ch. 9 - Prob. 9.11PCh. 9 - Prob. 1JCCh. 9 - Prob. 1FSCCh. 9 - Prob. 1SSCCh. 9 - Surfing the Standards Case 2: Costs Associated...Ch. 9 - Prob. 1BCC
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