Horngren's Accounting (11th Edition)
11th Edition
ISBN: 9780133856781
Author: Tracie L. Miller-Nobles, Brenda L. Mattison, Ella Mae Matsumura
Publisher: PEARSON
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Textbook Question
Chapter 9, Problem S9.8SE
Applying the allowance method (aging-of-receivables) to account for uncollectibles
World Class Work Shoes had the following balance at December 31, 2016, before the
year-end adjustments:
The aging of accounts receivable yields the following data:
Requirements
- Journalize World Class’s entry to record
bad debts expense for 2016 using the aging-of-receivables method. - Prepare a T-account to compute the ending balance of Allowance for Bad Debts.
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Students have asked these similar questions
Sunshine and Rainbows Resort had the following balances at December 31, 2025, before the year-end adjustments:
View the balances.
The aging of accounts receivable yields the following data:
View the accounts receivable aging schedule.
Requirements
1. Journalize Sunshine and Rainbows Resort's entry to record bad debts expense for 2025 using the aging-of-receivables method.
2. Prepare a T-account to compute the ending balance of Allowance for Bad Debts.
Requirement 1. Journalize Sunshine and Rainbows Resort's entry to record bad debts expense for 2025 using the aging-of-receivables method. (Record debits first, then credits. Select the explanation on the last line of the journal
entry table.)
Dec.
Date
31
Accounts and Explanation
Debit
Credit
Balances
-
☑
Accounts Receivable Aging Schedule
Age of Accounts Receivable
0-60 Days
Over 60 Days
Total Receivables
Accounts Receivable
75,000
$
3,000
$
78,000
Estimated percent uncollectible
× 4%
* 24%
-
☑
Accounts Receivable
Allowance for Bad…
Spring Garden Flowers had the following balances at December 31, 2024, before the year-end adjustments:
E (Click the icon to view the balances.)
The aging of accounts receivable yields the following data:
E (Click the icon to view the accounts receivable aging schedule.)
Requirements
Journalize Spring's entry to record bad debts expense for 2024 using the aging-of-receivables method.
1.
2.
Prepare a T-account to compute the ending balance of Allowance for Bad Debts.
Requirement 1. Journalize Spring's entry to record bad debts expense for 2024 using the aging-of-receivables method. (Record debits first, then credits. Select the explanation on the last line of the journal entry table.)
Date
Accounts
Debit
Credit
Dec.
31
Data Table
Accounts Receivable
Allowance for Bad Debts
66,000
1,615
Requirement 2. Prepare a T-account to compute the ending balance of Allowance for Bad Debts.
Allowance for Bad Debts
Print
Done
Data Table
Age of Accounts Receivable
0-60 Days
Over 60 Days
Total…
At December 31, 2018, the Accounts Receivable balance of Solar Energy Manufacturing is $205,000. The Allowance for Bad Debts account has a $8,050 debit balance. Solar Energy Manufacturing prepares the following aging schedule for its accounts receivable:
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, 2018.
Begin by determining the target balance of Allowance for Bad Debts by using the age of each account.
Age of Accounts
1-30
31-60
61-90
Over 90
Total
Days
Days
Days
Days
Balance
Accounts Receivable
$70,000
$85,000
$45,000
$5,000
Estimated percent uncollectible
0.5
%
5.0
%
7.0
%
46.0
%
Estimated total uncollectible
Journalize the year-end adjusting entry for bad debts on the basis of the aging schedule. (Record debits first, then credits. Select the explanation on the last line of the journal entry table.)
Date
Accounts and…
Chapter 9 Solutions
Horngren's Accounting (11th Edition)
Ch. 9 - 1. With good internal controls, the person who...Ch. 9 - Prob. 2QCCh. 9 - Which of the following is a limitation of the...Ch. 9 - 3. The entry to record a write-off of an...Ch. 9 - Brickman Company uses the allowance method to...Ch. 9 - Brickman’s ending balance of accounts Receivable...Ch. 9 - At December 31 year-end, Crain Company has an...Ch. 9 - Using the data in the preceding question, what...Ch. 9 - At year-end, Schultz Company has cash of $11,600,...Ch. 9 - Using the data in the preceding question, assume...
Ch. 9 - What is the difference between accounts receivable...Ch. 9 - List some common examples of other receivables,...Ch. 9 - Prob. 3RQCh. 9 - When dealing with receivables, give an example of...Ch. 9 - What type of account must the sum of all...Ch. 9 - Prob. 6RQCh. 9 - What occurs when a business factors its...Ch. 9 - What occurs when a business pledges its...Ch. 9 - What is the expense account associated with the...Ch. 9 - When is bad debts expense recorded when using the...Ch. 9 - What are some limitations of using the direct...Ch. 9 - Prob. 12RQCh. 9 - Prob. 13RQCh. 9 - When using the allowance method, what account is...Ch. 9 - Prob. 15RQCh. 9 - Prob. 16RQCh. 9 - How do the percent-of-receivables and...Ch. 9 - What is the difference between the...Ch. 9 - In accounting for bad debts, how do the income...Ch. 9 - What is the formula to compute interest on a note...Ch. 9 - Prob. 21RQCh. 9 - Prob. 22RQCh. 9 - Prob. 23RQCh. 9 - Prob. 24RQCh. 9 - Prob. S9.1SECh. 9 - Prob. S9.2SECh. 9 - Applying the direct write-off method to account...Ch. 9 - Collecting a receivable previously written...Ch. 9 - Applying die allowance method to account for...Ch. 9 - Applying the allowance method (percent-of-sales)...Ch. 9 - Applying the allowance method...Ch. 9 - Applying the allowance method...Ch. 9 - Computing interest amounts on notes receivable A...Ch. 9 - Accounting for a note receivable On June 6,...Ch. 9 - Accruing interest revenue and recording collection...Ch. 9 - Recording a dishonored note receivable Midway...Ch. 9 - Using the acid-test ratio, accounts receivable...Ch. 9 - Defining common receivables terms Learning...Ch. 9 - E9-15 Identifying and correcting internal control...Ch. 9 - Journalizing transactions using the direct...Ch. 9 - Prob. E9.17ECh. 9 - Prob. E9.18ECh. 9 - Accounting for uncollectible accounts using the...Ch. 9 - Prob. E9.20ECh. 9 - Prob. E9.21ECh. 9 - Journalizing note receivable transactions...Ch. 9 - Journalizing note receivable transactions The...Ch. 9 - Journalizing note receivable transactions Like New...Ch. 9 - Evaluating ratio data Chippewa Carpets reported...Ch. 9 - Prob. E9.26ECh. 9 - Accounting for uncollectible accounts using the...Ch. 9 - Accounting for uncollectible accounts using the...Ch. 9 - Accounting for uncollectible accounts using the...Ch. 9 - Prob. P9.30APGACh. 9 - Accounting for notes receivable and accruing...Ch. 9 - Accounting for notes receivable, dishonored notes,...Ch. 9 - Prob. P9.33APGACh. 9 - Prob. P9.34BPGBCh. 9 - Prob. P9.35BPGBCh. 9 - Prob. P9.36BPGBCh. 9 - Prob. P9.37BPGBCh. 9 - Prob. P9.38BPGBCh. 9 - Prob. P9.39BPGBCh. 9 - Prob. P9.40BPGBCh. 9 - Prob. P9.41CPCh. 9 - Accounting for uncollectible accounts using the...Ch. 9 - Decision Case 9-1 Weddings on Demand sells on...Ch. 9 - Decision Case 9-2 Pauline’s Pottery has always...Ch. 9 - Prob. 9.1FCCh. 9 - > Financial Statement Case 9-1 Use Starbucks...
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- Worldwide Marble Importers had the following balances at December 31, 2024, before the year-end adjustments: (Click the icon to view the balances.) The aging of accounts receivable yields the following data: (Click the icon to view the accounts receivable aging schedule.) Requirements 1. Journalize Worldwide's entry to record bad debts expense for 2024 using the aging-of-receivables method. 2. Prepare a T-account to compute the ending balance of Allowance for Bad Debts. Requirement 1. Journalize Worldwide's entry to record bad debts expense for 2024 using the aging-of-receivables method. (Record debits first, then credits. Select the explanation on the last line of the journal entry table.) Date Accounts Dec. 31 Data table Accounts Receivable Estimated percent uncollectible $ 0-60 Days 71,000 x 4% Print Age of Accounts Receivable Over 60 Days 4,000 x 25% $ Done Debit $ Credit C Total Receivables 75,000 Data table Accounts Receivable 75,000 Print Allowance for Bad Debts 1,978 Done Xarrow_forwardWorldwide Marble Importers had the following balances at December 31, 2024, before the year-end adjustments: (Click the icon to view the balances.) The aging of accounts receivable yields the following data: (Click the icon to view the accounts receivable aging schedule.) Requirements 1. Journalize Worldwide's entry to record bad debts expense for 2024 using the aging-of-receivables method. 2. Prepare a T-account to compute the ending balance of Allowance for Bad Debts. Requirement 1. Journalize Worldwide's entry to record bad debts expense for 2024 using the aging-of-receivables method. (Record debits first, then credits. Select the explanation on the last line of the journal entry table.) Date Accounts Dec. 31 Requirement 2. Prepare a T-account to compute the ending balance of Allowance for Bad Debts. Allowance for Bad Debts Data table Accounts Receivable Estimated percent uncollectible $ 0-60 Days 74,000 x 2% Print Debit Age of Accounts Receivable Over 60 Days 6,000 x 25% $ Done $…arrow_forwardSprague Company uses the aging method to adjust the allowance for uncollectibleaccounts at the end of the period. At December 31, 2018, the balance of accounts receivable is$250,000 and the allowance for uncollectible accounts has a credit balance of $4,000 (beforeadjustment). An analysis of accounts receivable produced the following age groups:Current ...................................... $150,00060 days past due......................... 90,000Over 60 days past due................ 10,000$250,000Based on past experience, Sprague estimates that the percentage of accounts that will prove tobe uncollectible within the three age groups is 2% of the current balance, 8% of the 60 dayspast due balance, and 18% of the over 60 days past due balance. Based on these facts, theadjusting entry for uncollectible accounts should be made in the amount ofa. $8,000.b. $12,000.c. $17,000.d. $16,000.arrow_forward
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