11. The following aging of Accounts Receivable is for Cook Company at the end of its first yearof business:Leticia JamesSarah GreenJay KrishnanLuis HernandezPreeti ShroffYu GaoTotalOverall$ 30,000Age of AccountLess than 30 days31 to 60 days61 to 90 daysOver 90 days120,00036,000180,00048,00075,000Aging of Accounts ReceivableDecember 31, 20X131 days to60 days2Less than30 days$24,00093,0009,000123580150,00030,00060,000PercentUltimatelyUncollectible$366,00012,00012,000$489.000$24,000Cook Company has collected the following bad debt information from a consultant familiar withCook's industry:30,00018,00061 days to90 days$3,0006,000$72,00015,000Over90 days$3,00015,0009,000$27,000Requireda. 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 entrieswas a CREDIT of $5,000. Record the correct adjusting entry for Bad Debt Expense.

Accounts receivables refers to that amount which is yet to be received from the customers to whom…

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 Age of Account Less than 30 days Overall $ 30,000 120,000 36,000 180,000 48,000 75,000 31 to 60 days 61 to 90 days Over 90 days $489,000 Aging of Accounts Receivable December 31, 20X1 Less than 31 days to 30 days 60 days $24,000 93,000 9,000 2 12 35 80 150,000 30,000 60,000 Percent Ultimately Uncollectible 12,000 12,000 30,000 18,000 $366,000 $24,000 Cook Company has collected the following bad debt information from a consultant familiar with Cook's industry: $72,000 61 days to 90 days $3,000 6,000 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 CREDIT of $5,000. Record the correct adjusting entry for Bad Debt Expense.

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 Age of Account Less than 30 days Overall $ 30,000 120,000 36,000 180,000 48,000 75,000 31 to 60 days 61 to 90 days Over 90 days $489,000 Aging of Accounts Receivable December 31, 20X1 Less than 31 days to 30 days 60 days $24,000 93,000 9,000 2 12 35 80 150,000 30,000 60,000 Percent Ultimately Uncollectible 12,000 12,000 30,000 18,000 $366,000 $24,000 Cook Company has collected the following bad debt information from a consultant familiar with Cook's industry: $72,000 61 days to 90 days $3,000 6,000 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 CREDIT of $5,000. Record the correct adjusting entry for Bad Debt Expense.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

Indiana Bones, Inc., has the following account balances at the end of the year before adjustments: Accounts Receivable $60,000 Allowance for Doubtful Accounts $800 credit balance Sales $900,000 Doubtful Accounts Expense 0 Management estimates that 11% of accounts receivable will be uncollectible. After the correct adjusting entry has been made, Doubtful Accounts Expense on the income statement for the year equals:
P8-5A Pearson Company uses the allowance method to estimate uncollectible accounts receivable. The company produced the following information from aging its accounts receivable at year end: Number of Days Outstanding 31-60 Total 0-30 61-90 91-120 Accounts receivable Estimated % uncollectible Estimated uncollectible $640,000 $360,000 2% $140,000 S100,000 10% $40,000 30% 5% accounts The unadjusted balance in Allowance for Doubtful Accounts is a debit of $3,000. Instructions (a) Complete the aging schedule and calculate the total estimated uncollectible accounts. (b) Record the bad debt adjusting entry using the information determined in part (a). (c) In the following year, $18,000 of the outstanding accounts receivable is determined to be uncollectible. Record the write off of the uncollectible accounts. (d) The company collects $4,500 of the $18.0X0 of accounts that was determined to be uncollectible in part (c). The company also expects to collect an additional $1.000. Record the…
The following aging information pertains to Jacobsen Company's accounts receivable at December 31, 2024: Days Outstanding Amount Estimated % Uncollectible 0-30 $ 420,000 2% 31-60 140,000 5% 61-120 100,000 10% Over 120 120,000 20% During 2024, Jacobsen wrote off $18,000 in receivables and recovered $6,000 that had been written off in prior years. Jacobsen's December 31, 2023, allowance for uncollectible accounts was $40,000. Using the balance sheet approach, what amount of allowance for uncollectible accounts should Jacobsen report at December 31, 2024?
Chapter 5: Receivables and Sales A company reports the following amounts at 12/31/YR2 (before any year-end adjustment). Management estimates 8% of the receivables will not be collectible. The company uses the percent-of-receivables method to determine bad debt expense. Credit sales for the year 1,000,000 Accounts receiyable (A/R) 90,000 Allowance for uncollectible accounts ("AUA") 1,800 Credit Bal. Estimated percent uncollectible. 6.0% Create T accounts for A/R, AUA and Bad debt expense to help with the following questions. Accounts Receivable AUA Bad Debt Expense How much of the Accounts Receivable does management not expect to collect? What amount will the company record as bad debt expense for the YR2? What amount will be shown on the 12/31 balance sheet for Net Accounts Receivable? 1 2 3 On January 5, YR3, the company writes off an A/R they determined is uncollectible. After the write off, what is the balance in AUA? The 4 amount of the write-off is: 200 After the write off, what…
Daley Company prepared the following aging of receivables analysis at December 31. Total 0 Accounts receivable Percent uncollectible $ 625,000 $ 407,000 1 to 30 $ 101,000 Days Past Due 31 to 60 $ 47,000 61 to 90 $ 29,000 Over 90 $ 41,000 3% 4% 7% 9% 12% a. Estimate the balance of the Allowance for Doubtful Accounts assuming the company uses 5% 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 $13,100 credit. c. 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 $2,100 debit. Answer is not complete. Complete this question by entering your answers in the tabs below. Req A Req B and C Estimate the balance of the Allowance for Doubtful Accounts assuming the company…
None
Required information [The following information applies to the questions displayed below.] Daley Company prepared the following aging of receivables analysis at December 31. Days Past Due 31 to 60 $ 56,000 7% Accounts receivable Percent uncollectible Total 0 $ 670,000 $ 416,000 Req A Req B and C 3% Complete this question by entering your answers in the tabs below. 1 to 30 $ 110,000 a. Estimate the balance of the Allowance for Doubtful Accounts assuming the company uses 5% 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 $14,000 credit. c. 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 $3,000 debit. Estimated balance of allowance for uncollectibles 4%
Route Canal Shipping Company has the following schedule for aging of accounts receivable: Age of Receivables April 30, 20X1 (1) (2) (3) (4) Month of Sales Age of Account Amounts Percent of Amount Due April 0–30 $ 283,500 _______ March 31–60 63,000 _______ February 61–90 252,000 _______ January 91–120 31,500 _______ Total receivables $ 630,000 100% Calculate the percentage of amount due for each month. If the firm had $1,680,000 in credit sales over the four-month period, compute the average collection period. Average daily credit sales should be based on a 120-day period.
Vishal
Daley Company prepared the following aging of receivables analysis at December 31. Days Past Due 31 to 60 $ 47,000 Accounts receivable Percent uncollectible Req A Complete this question by entering your answers in the tabs below. Req B and C Not due: 1 to 30: 31 to 60: 61 to 90: Over 90: a. Complete the table below to calculate the estimated balance of Allowance for Doubtful Accounts using aging of accounts receivable. 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 $4,700 credit. Accounts Receivable c. 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 $1,200 debit. X Total O $625,000 $ 407,000 X X X Complete the table below to calculate the estimated balance of Allowance for Doubtful Accounts using aging of accounts receivable. X Percent Uncollectible (%) = 3%…
Account answer
Seaforth International wrote off the following accounts receivable as uncollectible for the year ending December 31: Customer Amount Kim Abel $ 24,300 Lee Drake 31,195 Jenny Green 29,715 Mike Lamb 17,890 Total $103,100 The company prepared the following aging schedule for its accounts receivable on December 31: Aging Class (Number of Days Past Due) Receivables Balance on December 31 Estimated Percent of Uncollectible Accounts 0–30 days $ 735,000 1% 31–60 days 290,000 2 61–90 days 111,000 15 91–120 days 70,000 30 More than 120 days 94,000 60 Total receivables $1,300,000 A. Journalize the write-offs under the direct write-off method. If no entry is required, simply skip to the next transaction. Refer to the Chart of Accounts for exact wording of account titles. B. Journalize the write-offs and the year-end adjusting entry under the allowance method, assuming that the…