1. Create an aging of accounts receivable schedule similar to Exhibit 9.8 and calculate the estimated balance for the Allowance for Doubtful Accounts. 2. Assuming an unadjusted credit balance of $100, record the required adjustment to the Allowance for Doubtful Accounts. Customer Accounts Recelvable Days Past Due BCC Company $4,000 12 Lannister Co. 1,000 Mike Properties 5,000 107 texto Ted Reeves 500 72 Jen Steffens 2,000 35 Days Past Due 1 to 30 31 to 60 61 to 90 Over 90 Percent uncollectible ........ 1% 3% 5% 8% 12%
Bad Debts
At the end of the accounting period, a financial statement is prepared by every company, then at that time while preparing the financial statement, the company determines among its total receivable amount how much portion of receivables is collected by the company during that accounting period.
Accounts Receivable
The word “account receivable” means the payment is yet to be made for the work that is already done. Generally, each and every business sells its goods and services either in cash or in credit. So, when the goods are sold on credit account receivable arise which means the company is going to get the payment from its customer to whom the goods are sold on credit. Usually, the credit period may be for a very short period of time and in some rare cases it takes a year.
Following is a list of credit customers along with their amounts owed and the days past due at December 31. Following that list are five classifications of
A)Create an aging of accounts receivable schedule similar to Exhibit 9.8 and calculate the estimated balance for the Allowance for Doubtful Accounts.
B)Assuming an unadjusted credit balance of $100, record the required adjustment to the Allowance for Doubtful Accounts
Trending now
This is a popular solution!
Step by step
Solved in 3 steps with 2 images
