**Mirror Mart's Accounts Receivable Uncollectibility Analysis**Mirror Mart utilizes the balance sheet aging method to assess uncollectible debts on receivables. Below is the past-due category information for outstanding receivable debt for 2019.**Table 1: Original Past-Due Categories**| Days Past Due | 0-30 Days | 31-90 Days | Over 90 Days ||--------------------|-------------|--------------|--------------|| Accounts Receivable Amount | $55,000 | $33,000 | $17,000 || Percent Uncollectible | 8% | 15% | 30% || Total per Category | ? | ? | ? || Total Uncollectible | ? | ? | ? |**Changes in Past-Due Categories**To improve management of earnings, Mirror Mart decided to adjust the past-due categories as follows:**Table 2: Revised Past-Due Categories**| Days Past Due | 0-60 Days | 61-120 Days | Over 120 Days ||--------------------|-------------|--------------|---------------|| Accounts Receivable Amount | $84,000 | $11,000 | $7,000 || Percent Uncollectible | 8% | 15% | 30% || Total per Category | ? | ? | ? || Total Uncollectible | ? | ? | ? |**Instructions:**A. Complete each table by filling in the blanks.**Table 3: Calculation Exercise**| Days Past Due | 0-30 Days | 31-90 Days | Over 90 Days ||--------------------|-------------|--------------|--------------|| Accounts Receivable Amount | $55,000 | $33,000 | $17,000 || Percent Uncollectible | 8% | 15% | 30% || Total per Category | $[ ] | $[ ] | $[ ] || **Total Uncollectible** | **$[ ]** | **$[ ]** | **$[ ]** |*Note:* Calculate the total per category by multiplying the accounts receivable amount by the percent uncollectible ### Accounts Receivable Aging Analysis#### Table of Uncollectible AccountsThis table presents an aging analysis of accounts receivable, illustrating the accounts receivable amount, the percent expected to be uncollectible, and calculations for each category based on days past due.| Days Past Due | Accounts Receivable Amount | Percent Uncollectible | Total per Category ||---------------------|---------------------------|----------------------|--------------------|| **0-60 days** | $84,000 | 8% | $[Input] || **61-120 days** | $11,000 | 15% | $[Input] || **Over 120 days** | $7,000 | 30% | $[Input] |- **Total Uncollectible**: $[Input]#### B. Determine the Difference Between Total Uncollectible- **Difference:** $[Input]#### C. Impact on Net Income and Net Accounts ReceivableConsider how the new total uncollectible amount influences net income and net accounts receivable. Choose the correct option:a. Bad debt expense is lower, net income is higher, and net receivables are higher.b. Bad debt expense is lower, net income is higher, and net receivables are lower.c. Bad debt expense is higher, net income is lower, and net receivables are higher.d. Bad debt expense is higher, net income is lower, and net receivables are lower.- **Select your answer:** [Dropdown]This exercise helps in understanding the financial impact of uncollectible accounts on a company's financial statements.

Accounts receivable represents the revenue earned by the company but the cash for the same has not…

Answered: 0-30 days 31-90 days Over 90 days past…

FINANCIAL ACCOUNTING

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ISBN:9781259964947

Author:Libby

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Chapter1: Financial Statements And Business Decisions

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Task 2: Evaluate the company's efficiency in collecting its accounts receivable during the fiscal year ended 31 December 2021. Use the company's information from its annual reports: Receivables as of 31 December 2020 $4,468,392 $4,972,722 $45,349,943 Receivables as of 31 December 2021 Sales revenue for year ended 31 December 2021 1. Calculate the company's number of days of sales outstanding (DSO) for the fiscal year ended 31 December 2021. (Use the average receivables to calculate the ratio). Not Accounting receivable Average Day's sales in receivable = 154; 2. Interpret the calculated ratio. 3. Assume that the industry average DSO ratio is 60 days. Based on this information and the subject company's DSO ratio, critically evaluate the company's credit policy and its implications.
View Policies Current Attempt in Progress Assume the following information for Teal Mountain Corp. Accounts receivable (beginning balance) Allowance for doubtful accounts (beginning balance) Net credit sales Collections Write-offs of accounts receivable Collections of accounts previously written off (a) Account Titles and Explanation Uncollectible accounts are expected to be 6% of the ending balance in accounts receivable. (To record sales on account) (To record collection of accounts receivable) Prepare the entries to record sales and collections during the period. (List all debit entries before credit entries. Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts) eTextbook and Media $143.000 List of Accounts 11,340 Save for Later Using multiple attempts will impact your score. 10% scare reduction after attempt 5 930,000 912.000 6,400 2,200…
11. The following aging of Accounts Receivable is for Cook Company at the end of its first year of business: Leticia James Sarah Green Jay Krishnan Luis Hernandez Preeti Shroff Yu Gao Total Overall $ 30,000 Age of Account Less than 30 days 31 to 60 days 61 to 90 days Over 90 days 120,000 36,000 180,000 48,000 75,000 Aging of Accounts Receivable December 31, 20X1 31 days to 60 days 2 Less than 30 days $24,000 93,000 9,000 12 35 80 150,000 30,000 60,000 Percent Ultimately Uncollectible $366,000 12,000 12,000 $489.000 $24,000 Cook Company has collected the following bad debt information from a consultant familiar with Cook's industry: 30,000 18,000 61 days to 90 days $3,000 6,000 $72,000 15,000 Over 90 days $3,000 15,000 9,000 $27,000 Required a. Compute the appropriate allowance for bad debts as of December 31, 20X1. b. What is Cook's NET Accounts Receivable balance as of December 31, 20X1? c. Assume the balance in the Allowance for Doubtful Accounts before any adjusting entries was a…
Jonha's Company had the following accounts receivable (AR) aging schedule. 1-30 31-60 61-90 91+ Company days days days days A $400 $200 $0 $0 B. $500 $100 $0 $0 $400 $400 $0 What % of AR invoices does Jonha's expect to collect in 61-90 days?
Cash and accounts receivable for Adams Company are as follows: Current Year Prior Year Cash $64,800 $54,000 Accounts receivable (net) 58,982 76,600 What are the amounts and percentages of increase or decrease that would be shown with horizontal analysis? Account Dollar Change Percent Change Cash $fill in the blank 1 fill in the blank 2 % Accounts Receivable $fill in the blank 4 fill in the blank 5 %
d) Golden Music Company uses the allowance method to estimate uncollectible accounts receivable. An aging of the accounts receivable revealed the following: Estimated Percentage Uncollectible Current Accounts $17,000 $1,500 $1,200 $500 $900 $21,100 1% 1-30 days past due 31–60 days past due 61–90 days past due Over 90 days past due Total Accounts Receivable 3% 6% 12% 25% On 31 December 2021, the company has found out that a customer went bankrupt and management agreed that the accounts receivable of $900 included above which is past due for over 90 days can be written off. i) Compute the total estimated uncollectible accounts receivable as at 31 December 2021. ii) Prepare the journal entry year-end to write off the accounts receivable of $900 and the adjusting journal entry to record the bad debts for the year ended 31 December 2021.
Task 2: Evaluate the company's efficiency in collecting its accounts receivable during the fiscal year ended 31 December 2021. Use the company's information from its annual reports: Receivables as of 31 December 2020 Receivables as of 31 December 2021 $4,468,392 $4,972,722 $45,349,943 Sales revenue for year ended 31 December 2021 1. Calculate the company's number of days of sales outstanding (DSO) for the fiscal year ended 31 December 2021. (Use the average receivables to calculate the ratio). Net = 2.37 = Accounting receivable: Average Day's sales in receivable = 154. 2. Interpret the calculated ratio. 3. Assume that the industry average DSO ratio is 60 days. Based on this information and the subject company's DSO ratio, critically evaluate the company's credit policy and its implications.
27. The average payment period of an organization is calculated by __________. a. Average payables / Daily credit purchases b. Average payables / Net purchases c. Accounts payables / Total purchases d. Opening account payable + Closing account payable /2
At what amount will accounts receivable for Anderson Company be reported on the balance sheet if the gross receivable balance is $52,000 and the allowance for doubtful accounts is estimated at 4% of gross receivables? Select one: A. $28,200 B. $49,920 C. $52,960 D. $47,000
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The management of Maxlab Ltd. has provided you with the following data relating to their operations for the last two financial periods. 2021 2020 Notes receivable $ 20,000 $ -0- Accounts receivable $182,000 $140,000 Sales $930,000 $750,000 Operating expenses $170,000 $200,000 Payables $45,000 $20,000 Required: Calculate the percentage change for each item as reported above using 2020 as the base year and explain your result.

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0-30 days 31-90 days Over 90 days past due past due past due Accounts receivable amount $55,000 $33,000 $17,000 Percent uncollectible 8% 15% 30% Total per category ? ? Total uncollectible ? To manage earnings more efficiently, Mirror Mart decided to change past-due categories as follows.