Intermediate Accounting
3rd Edition
ISBN: 9780136912644
Author: Elizabeth A. Gordon; Jana S. Raedy; Alexander J. Sannella
Publisher: Pearson Education (US)
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Chapter 9, Problem 9.7P
a.
To determine
The closing balance required in the allowance for uncollectible accounts at year-end.
Given Information:
Credit sale is $20,000,000.
Closing accounts receivables $1,611,000.
Unadjusted balance in allowance for uncollectible accounts is $94,800.
Current accounts receivables are $366,500 with 5% uncollectible expectation.
1-30 days accounts receivables are $601,300 with 9% uncollectible expectation
31-60 days accounts receivables are $46,800 with 20% uncollectible expectation
61-90 days accounts receivables are $168,900 with 55% uncollectible expectation
Over 90 days accounts receivables are $427,900 with 100% uncollectible expectation
b.
To determine
To prepare: The
Given Information:
Unadjusted balance in allowance for uncollectible accounts is $94,800.
c.
To determine
To prepare: The Journal entry to record bad debt provision.
Given Information:
Unadjusted balance in allowance for uncollectible accounts is $231,000.
d.
To determine
The Journal entry to write off accounts.
Given Information:
Accounts receivables of over 90 days past due to be written off are $427,500.
e.
To determine
The Journal entry to write off accounts.
Given Information:
Accounts recovered subsequently are $345,000.
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As Perry Materials Supply was preparing for the year-end close, their balances were as follows:
Accounts Receivable - $146000 (dr)
Allowance for uncollectible accounts - $6200 (dr)
Uncollected Account Expense - $0
Perry Materials uses the aging method and has completed the following analysis of the accounts receivable:
Customer
1-30 Days
31-60 Days 61-90 Days
Over 90 Days
Total
Balance
Johnson
$4,600
$3,200
$7,800
Hot Pots, Inc.
800
1,000
1,800
Potter
40,000
550
40,550
Harrison
3,600
900
4,500
Marx
2,000
50
2,050
Younger
65,000
65,000
Merry Maids
5,900
5,900
Acher
12,000
6,400
18,400
Totals
$127,500
$13,750
$3,700
$1,050
$146,000
Uncollectible percentage
2%
10%
20%
40%
Estimated uncollectible amount
$2,550
$1,375
$740
$420
$5,085
Required:
How much will the…
Journalize the transactions under the allowance method, assuming that the allowance account had a beginning balance of $18,330 at the beginning of the year and the company uses the analysis of receivables method. Rustic Tables Company prepared the following aging schedule for its accounts receivable:
Aging Class (Numberof Days Past Due)
Receivables Balanceon December 31
Estimated Percent ofUncollectible Accounts
0-30 days
$293,000
1
%
31-60 days
110,000
8
61-90 days
35,000
20
91-120 days
13,000
55
More than 120 days
18,000
80
Total receivables
$469,000
Perry Materials uses the aging method and has completed the following analysis of the accounts
receivable:
Customer
Over 90 Total
1-30 Days 31-60 Days 61-90 Days Days
Balance
Johnson
$4,600
$3,200
$7,800
Hot Pots, Inc.
800
1,000
1,800
Potter
40,000
550
40,550
Harrison
3,600
900
4,500
Marx
2,000
50
2,050
Younger
65,000
65,000
Merry Maids
5,900
5,900
Acher
12.000
6,400
18,400
Totals
$127,500
$13,750
$3,700
$1,050
$146,000
Uncollectible percentage
10%
20%
40%
Estimated uncollectible
amount
$2,550
$1,375
$740
$420
$5,085
Required:
1. How much will the Uncollectible account expense for the year be?
2. What will the final balance in the Allowance account be, after adjusting for uncollectible
account expense?
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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