1. A year-end review of Accounts Receivable and estimated uncollectible percentages revealed the following: Days Outstanding Accounts Receivable Est. Percent Uncollectiable 1-30 days $62,000 2% 31-60 days $42,000 5% 61-90 days $25,000 11% Over 90 days $7,000 52% Before the year-end adjustment, the credit balance in Allowance for Uncollectible Accounts was $1,000. Under the aging-of-receivables method, the Uncollectible - Account Expense at year-end is: A. $10,730 B. $8,730 C. $9,730 D. $1,240 Please show all steps. Thanks

1. A year-end review of Accounts Receivable and estimated uncollectible percentages revealed the following: Days Outstanding Accounts Receivable Est. Percent Uncollectiable 1-30 days $62,000 2% 31-60 days $42,000 5% 61-90 days $25,000 11% Over 90 days $7,000 52% Before the year-end adjustment, the credit balance in Allowance for Uncollectible Accounts was $1,000. Under the aging-of-receivables method, the Uncollectible - Account Expense at year-end is: A. $10,730 B. $8,730 C. $9,730 D. $1,240 Please show all steps. Thanks

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Analysis of Receivables Method At the end of the current year, Accounts Receivable has a balance of $660,000, Allowance for Doubtful Accounts has a credit balance of $6,000, and sales for the year total $2,.970,000. Using the aging method, the balance of Allowance for Doubtful Accounts is estimated as $25.200. a. Determine the amount of the adjusting entry for uncollectible accounts. b. Determine the adjusted balances of Accounts Receivable, Allowance for Doubtful Accounts, and Bad Debt Expense. Accounts Receivable Allowance for Doubtful Accounts Bad Debt Expense c. Determine the net realizable value of accounts receivable.
Oo.151. Subject :- Account
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