2:Company B also uses the Analysis of Receivables method. However, Management has asked us to take a look at the Income Statement Impact if we change the Uncollectible Percentages for Each Budget of Aging. The aging schedule looks like the following: Customer Total Due Current 1-60 Past Due 61+Past Due A 1,000 1,000 B 1,500 1,500 800 800 2,000 2,000 E 500 500 Total: 5,800 2,800 1,000 2,000 Aging Category Current (Not past due) As Is Proposed 3% 2% 1- 60 past due 61+ days past due 5% 4% 9% 8% The balances in the accounts before any adjustments are as follows: current Sales are $400,000, Allowance for Doubtful Accounts has a Credit balance of $250, and bad debt expense has a debit balance of $2,000. What would be the adjusting entry under the As Is Calculation? What would be the adjusting entry under the Proposed Calculation?

2:Company B also uses the Analysis of Receivables method. However, Management has asked us to take a look at the Income Statement Impact if we change the Uncollectible Percentages for Each Budget of Aging. The aging schedule looks like the following: Customer Total Due Current 1-60 Past Due 61+Past Due A 1,000 1,000 B 1,500 1,500 800 800 2,000 2,000 E 500 500 Total: 5,800 2,800 1,000 2,000 Aging Category Current (Not past due) As Is Proposed 3% 2% 1- 60 past due 61+ days past due 5% 4% 9% 8% The balances in the accounts before any adjustments are as follows: current Sales are $400,000, Allowance for Doubtful Accounts has a Credit balance of $250, and bad debt expense has a debit balance of $2,000. What would be the adjusting entry under the As Is Calculation? What would be the adjusting entry under the Proposed Calculation?

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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Young and Old Corporation (YOC) uses two aging categories to estimate uncollectible accounts.Accounts less than 60 days are considered young and have a 5% uncollectible rate. Accounts morethan 60 days are considered old and have a 40% uncollectible rate.Required:1. If YOC has $100,000 of young accounts and $400,000 of old accounts, how much should bereported in the Allowance for Doubtful Accounts?2. If YOC’s Allowance for Doubtful Accounts currently has an unadjusted credit balance of$40,000, how much should be credited to the account?3. If YOC’s Allowance for Doubtful Accounts has an unadjusted debit balance of $5,000, howmuch should be credited to the account?4. Explain how YOC’s Allowance for Doubtful Accounts could have a debit balance
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Net Zero Products, a wholesaler of sustainable raw materials. Prepared the following aging of receivables analysis. Days Past Due Total 0 1 to 30 31 to 60 61 to 90 Over 90 Accounts receivable $ 153,500 $ 91,000 $ 29,000 $ 12,500 $ 9,500 $ 11,500 Percent uncollectible 1 % 2 % 4 % 6 % 10 % 1. Estimate the balance of the Allowance for Doubtful Accounts using the aging of accounts receivable method.2. Prepare the adjusting entry to record bad debts expense assuming the unadjusted balance in the Allowance for Doubtful Accounts is a $2,100 credit.
Algebraic method Prosperous Bank has three support areas (administration, human resources, and accounting) and three revenue-generating areas (checking accounts, savings accounts, and loans). Monthly direct costs and the interdepartmental support structure are shown below: Percentage of Service Used by Department Direct Costs Admin. Human Resources Accounting Checking Savings Loans Administration $540,000 40 10 20 30 20 20 Human resources Accounting Checking Savings Loans 360,000 300,000 630,000 337,500 675,000 Checking $ Savings Loans Total 10 10 $ 2,842,500 10 10 10 10 Compute the total cost for each revenue-generating area of the bank using the algbraic method. Note: Do not round proportions in your calculations; round your final answer to the nearest whole dollar. Note: Round your final answers below to the nearest 100; for example, round 8,668 to 8,700. 0 x 0 x 0 x ✓ 30 30 40
Fill in the missing data for each of the following independent cases. (Ignore income taxes.) Note: Do not round intermediate calculations. Leave no cells blank - be certain to enter "0" wherever required. 1. 2. 3. 4. Sales Revenue Variable Expenses 225,000 50,000 $ 98,000 145,000 18,000 Total Contribution Margin 48,000 290,000 Fixed Expenses 78,400 Net Income 200,000 20,800 Break-Even Sales Revenue $ 98,000 225,000
Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Required 4 Required 5 Required 6 Required 7 Compute the company's margin, turnover, and return on investment (ROI) for the period. Note: Round your intermediate calculations and final answer to 2 decimal places. Margin % Turnover ROI %
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Young and Old Corporation (YOC) uses two aging categories to estimate uncollectible accounts. Accounts less than 60 days are considered young and have a 5% uncollectible rate. Accounts more than 60 days are considered old and have a 40% uncollectible rate. Required: 1. If YOC has $118,000 of young accounts and $320,000 of old accounts, how much should be reported in the Allowance for Doubtful Accounts? 2. If YOC's Allowance for Doubtful Accounts currently has an unadjusted credit balance of $32,000, how much should be credited to the account? 3. If YOC's Allowance for Doubtful Accounts has an unadjusted debit balance of $4,200, how much should be credited to the account? 1 Amount to be Reported 2. Amount to be Credited 3. Amount to be Credited
Tammany Professional Engineers uses the Percentage of Receivables method to account for bad debt. The following is a summary of Tammany’s Accounts Receivable Aging Report. Cash Sales $42,000 Credit Sales $21,000 Allowance for Uncollectible Accounts December 31, 2020 $4,375 Current > 30 >60 >90 $115,000 $98,000 $75,000 $15,000 Estimated Uncollectible 1% 2% 4% 5% Required: Prepare the total estimate of uncollectible accounts and give the amount of the required adjustment. Do not prepare a journal entry. Please show your work if possible. In addition to submitting your answer here, you should also write it down so you an use it for the next problem.
I need help with 5,7, and 12 please 5. Number of days in sales in receivables 7. number of days in sales in inventory 12. return on total asset i have tried working on them myself and nothing appears to be correct. Please help me on these last 3 questions for these questions i need the answer in dollar amounts as its asking for the current asset-current liabilities=calculated value i understand that number 5 is 365/16 but i need the dollar amount and number 7 is 365/6 i just need the dollar amount. Then 12 i need the dollar amount for number 5 i know its 6250000 i would assume its divided by 10000000 and get 22.8 days but my professor said it was wrong. number 7 i tried 1070000/5350000 and got 73 days which is still wrong number 12 i tried 1300000/9267500=14% and professor said wrong too
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