1. Based on the aging-of-receivables method, is the unadjusted balance of the allowance account adequate? 2. Make the entry required by the aging schedule; show your calculation. 3. Show how Sunset Hills Clinic will report Accounts Receivable on its December 31 balance sheet. Over 90 days Total 0-30 days $110,000 0.5% 31-60 days $60,000 1% 61-90 days $50,000 6% $15,000 $235,000 40% Receivables Estimated uncollectible Allowance balance Compared to the current balance of $6,500, is it sufficient? ACCOUNTS DEBIT CREDIT DATE Calculation: BALANCE SHEET

1. Based on the aging-of-receivables method, is the unadjusted balance of the allowance account adequate? 2. Make the entry required by the aging schedule; show your calculation. 3. Show how Sunset Hills Clinic will report Accounts Receivable on its December 31 balance sheet. Over 90 days Total 0-30 days $110,000 0.5% 31-60 days $60,000 1% 61-90 days $50,000 6% $15,000 $235,000 40% Receivables Estimated uncollectible Allowance balance Compared to the current balance of $6,500, is it sufficient? ACCOUNTS DEBIT CREDIT DATE Calculation: BALANCE SHEET

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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Required information Use the following information for the Exercises below. Skip to question [The following information applies to the questions displayed below.]Daley Company prepared the following aging of receivables analysis at December 31. Days Past Due Total 0 1 to 30 31 to 60 61 to 90 Over 90 Accounts receivable $ 590,000 $ 400,000 $ 94,000 $ 40,000 $ 22,000 $ 34,000 Percent uncollectible 2 % 3 % 6 % 8 % 11 % Exercise 9-9 Percent of receivables method LO P3 a. Estimate the balance of the Allowance for Doubtful Accounts assuming the company uses 4% of total accounts receivable to estimate uncollectibles, instead of the aging of receivables method.b. Prepare the adjusting entry to record Bad Debts Expense using the estimate from part a. Assume the unadjusted balance in the Allowance for Doubtful Accounts is a $12,400 credit.c. Prepare the adjusting entry to record bad debts expense…
An invoice for furniture for $1, 210.88 with terms of 2/10, n/60 is dated October 3. A. What is the last day on which cash discount may be taken? B. If paid within discount period, how much is the cash discount? C. If the discount is missed, on what day does the credit period end?
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Using the table, what is the average daily balance of the credit card for the November 1 - November 30 billing period? Round your answer to the nearest cent.Do not include a dollar sign or comma in your answer. For example, $5, 678.00 should be entered as 5678.00. Day Activity Adjustment Closing Balance 1 7500 11 Payment -500 7000 21 Payment -750 6250 30 Purchase +250 6500
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The ADA has the below table regarding its account receivable: Age of Accounts Balance, June 30 Estimated Percentage Uncollectible 1-30 days $130,000 2.00% 31-60 days 70,000 5.00% 61-90 days 32,500 20.00% Over 90 days 3,000 50.00% If the opening balance of Allowance for Doubtful accounts is $7,050, the entries to record estimated uncollectible receivables this year will be: Select one: a. Bad debt expense $7,050 Allowance for doubtful accounts $7,050 b. Allowance for doubtful accounts $14,100 Account receivable $14,100 c. Bad debt expense $14,100 Allowance for doubtful accounts $14,100 d. Account receivable $7,100 Bad debt expense $7,100
The following are selected 2020 transactions of Teal Corporation. Purchased inventory from Ripken Company on account for $125,000. Teal records purchases gross and uses a periodic inventory system. Sept. 1 Issued a $125,000, 12-month, 12% note to Ripken in payment of account. Borrowed $125,000 from the Shore Bank by signing a 12-month, zero-interest-bearing $145,000 note. Oct. 1 Oct. 1 (a) Your answer has been saved. See score details after the due date. Prepare journal entries for the selected transactions above. (If no entry is required, select "NO Entry" for the account titles and enter Ofor the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually. Record entries in the order displayed in the problem statement.) Date Account Titles and Explanation Debit Credit eptember 1 v Purchases 125,000 Accounts Payable 125,000 Ictober 1 Accounts Payable 125,000 Notes Payable 125,000 ober 1 Cash 125,000 Discount on Notes Payable 20,000 Notes…
The beginning balance in the Allowance for Uncollectible Accounts account is a $3,500 credit. After conducting an aging analysis, management has determined that $11,700 of accounts receivable will be uncollectible. What is the ending balance in the Allowance for Uncollectible Accounts account? $11,700 $3,500 $15,200 $8,200
if your supervisor tells you to change the aging category of a large account from over 120 days to current status and prepare a new invoice to the customer with the revised date that agrees with this new category this will change the required allowance from for uncollectible accounts from $180, 000 to $235,000 how do you think this misstatement of funds will impact your income statement and your balance sheet?
Analysis of Receivables Method At the end of the current year, Accounts Receivable has a balance of $440,000, Allowance for Doubtful Accounts has a debit balance of $4,000, and sales for the year total $1,980,000. Using the aging method, the balance of Allowance for Doubtful Accounts is estimated as $18,400. a. Determine the amount of the adjusting entry for uncollectible accounts.$fill in the blank 1 b. Determine the adjusted balances of Accounts Receivable, Allowance for Doubtful Accounts, and Bad Debt Expense. Accounts Receivable $fill in the blank 2 Allowance for Doubtful Accounts $fill in the blank 3 Bad Debt Expense $fill in the blank 4 c. Determine the net realizable value of accounts receivable.$fill in the blank 5 Answer with all work