am. 124.. 2. Estimating Uncollectible Accounts and Reporting Accounts Receivable: Collins Companyanalyzes its accounts receivable at December 31 and arrives at the age categories below alongwith the percentages that are estimated as uncollectible. The balance of the allowance foruncollectible accounts is $1,100 on December 31, before any adjustments.Age Group0-30 Days Past DueAccounts ReceivableEstimated Loss %1%2%5%10%25%31-60 Days Past Due61-120 Days Past Due121-180 Days Past DueOver 180 Days Past DueTotal A/R=$110,000$40,000$27,000$14,000$9,000$200,000a. What amount of bad debt expense will Collins reports in its income statement for theyear?Estimated bad debets = accoutns receivable Estimated loss under each group(110,000 1%) + ($40,000+2%) + ($27,000 + 5%) + ($14,000 10 %) + ($9,000 25%)= $6,900b. Use the financial statement effects template to record Collins' bad debt expense for theyear.Bad debets expense = Estimated bad debets - balance in allowance accountC.$6,900 $1,100= $5,800What is the balance of accounts receivable on its December 31 balance sheet?d. What is the amount (as a %) of estimated uncollectible receivables?

As per the Honor code of Bartleby we are bound to give the answer of first three sub parts only,…

2. Estimating Uncollectible Accounts and Reporting Accounts Receivable: Collins Company analyzes its accounts receivable at December 31 and arrives at the age categories below along with the percentages that are estimated as uncollectible. The balance of the allowance for uncollectible accounts is $1,100 on December 31, before any adjustments. Age Group Accounts Receivable 0-30 Days Past Due 31-60 Days Past Due 61-120 Days Past Due 121-180 Days Past Due Over 180 Days Past Due Total A/R $110,000 $40,000 $27,000 $14,000 $9,000 $200,000 Estimated Loss % 1% 2% 5% 10% 25% a. What amount of bad debt expense will Collins reports in its income statement for the year? Estimated bad debets = accoutns receivable Estimated loss under each group (110,000 1 %) + ($40,000 2 %) + ($27,000 5% ) + ($14,000 10 %) + ($9,000 25%) = $6,900 . . b. Use the financial statement effects template to record Collins' bad debt expense for the year. Bad debets expense = Estimated bad debets - balance in allowance account $6,900 $1,100 = $5,800 c. What is the balance of accounts receivable on its December 31 balance sheet? d. What is the amount (as a %) of estimated uncollectible receivables?

2. Estimating Uncollectible Accounts and Reporting Accounts Receivable: Collins Company analyzes its accounts receivable at December 31 and arrives at the age categories below along with the percentages that are estimated as uncollectible. The balance of the allowance for uncollectible accounts is $1,100 on December 31, before any adjustments. Age Group Accounts Receivable 0-30 Days Past Due 31-60 Days Past Due 61-120 Days Past Due 121-180 Days Past Due Over 180 Days Past Due Total A/R $110,000 $40,000 $27,000 $14,000 $9,000 $200,000 Estimated Loss % 1% 2% 5% 10% 25% a. What amount of bad debt expense will Collins reports in its income statement for the year? Estimated bad debets = accoutns receivable Estimated loss under each group (110,000 1 %) + ($40,000 2 %) + ($27,000 5% ) + ($14,000 10 %) + ($9,000 25%) = $6,900 . . b. Use the financial statement effects template to record Collins' bad debt expense for the year. Bad debets expense = Estimated bad debets - balance in allowance account $6,900 $1,100 = $5,800 c. What is the balance of accounts receivable on its December 31 balance sheet? d. What is the amount (as a %) of estimated uncollectible receivables?

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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