0 to 30 31 to 60 61 to 90 Over 90 Instructions % Estimate of Uncollectable 1% 6% 7% 25% Amount Outstanding at Dec 31, 2023 $225,000 175,000 57,000 25,000 a) Calculate the allowance for expected credit losses at Dec 31, 2023 assuming that there is an existing balance in the allowance for expected credit losses account of Dr. $1,500 prior to any year-end adjusting entries. b) c) Prepare the required year-end journal entry to recognize Loss on Impairment. Calculate the net realizable value of accounts receivable as it would appear on the Statement of Financial Position.
0 to 30 31 to 60 61 to 90 Over 90 Instructions % Estimate of Uncollectable 1% 6% 7% 25% Amount Outstanding at Dec 31, 2023 $225,000 175,000 57,000 25,000 a) Calculate the allowance for expected credit losses at Dec 31, 2023 assuming that there is an existing balance in the allowance for expected credit losses account of Dr. $1,500 prior to any year-end adjusting entries. b) c) Prepare the required year-end journal entry to recognize Loss on Impairment. Calculate the net realizable value of accounts receivable as it would appear on the Statement of Financial Position.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:0 to 30
31 to 60
61 to 90
Over 90
Instructions
% Estimate of
Uncollectable
1%
6%
7%
25%
b)
c)
Amount
Outstanding at
Dec 31, 2023
$225,000
175,000
57,000
25,000
a)
Calculate the allowance for expected credit losses at Dec 31, 2023 assuming that there
is an existing balance in the allowance for expected credit losses account of Dr. $1,500 prior to
any year-end adjusting entries.
Prepare the required year-end journal entry to recognize Loss on Impairment.
Calculate the net realizable value of accounts receivable as it would appear on the
Statement of Financial Position.
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