After analyzing its accounts receivable at year-end, a company arrives at the following age categories along with the percentages estimated as uncollectibl Age of Accounts 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 Accounts Receivable Estimated Uncollectible % Report bad debt expense $97,000 [Select] 32,000 23,000 [Select] 10,000 6,000 $168,000 3.0% 4.0% 7.0% The year-end balance of the allowance for uncollectible accounts before any adjustment is $2,100. Use the information above to answer the following que What amount of bad debt expense will the company report in its income statement for the current year? [Select] 14.0% . Indicate the impact of current-year bad debt expense on the following amounts. If there is no net change in an item, select 'no net change. Transaction Total Assets Net Income 25.0% [Select] . What is the net accounts receivable balance that will be reported on the year-end balance sheet?
After analyzing its accounts receivable at year-end, a company arrives at the following age categories along with the percentages estimated as uncollectibl Age of Accounts 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 Accounts Receivable Estimated Uncollectible % Report bad debt expense $97,000 [Select] 32,000 23,000 [Select] 10,000 6,000 $168,000 3.0% 4.0% 7.0% The year-end balance of the allowance for uncollectible accounts before any adjustment is $2,100. Use the information above to answer the following que What amount of bad debt expense will the company report in its income statement for the current year? [Select] 14.0% . Indicate the impact of current-year bad debt expense on the following amounts. If there is no net change in an item, select 'no net change. Transaction Total Assets Net Income 25.0% [Select] . What is the net accounts receivable balance that will be reported on the year-end balance sheet?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Concept explainers
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.
Question
Qw.8.
![After analyzing its accounts receivable at year-end, a company arrives at the following age categories along with the percentages estimated as uncollectible.
Age of Accounts
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
[Select]
Accounts Receivable Estimated Uncollectible %
Report bad debt expense
$97,000
[Select]
32,000
23,000
[Select]
10,000
6,000
$168,000
3.0%
4.0%
The year-end balance of the allowance for uncollectible accounts before any adjustment is $2,100. Use the information above to answer the following question
a. What amount of bad debt expense will the company report in its income statement for the current year?
7.0%
14.0%
b. Indicate the impact of current-year bad debt expense on the following amounts. If there is no net change in an item, select 'no net change.
Transaction
Total Assets
Net Income
25.0%
[Select]
c. What is the net accounts receivable balance that will be reported on the year-end balance sheet?](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F6a5ed893-61e0-498d-adb4-9fd2f5f69109%2Ff3dbc840-f804-4988-a041-e0b5e918ef93%2Fag3dbqc_processed.png&w=3840&q=75)
Transcribed Image Text:After analyzing its accounts receivable at year-end, a company arrives at the following age categories along with the percentages estimated as uncollectible.
Age of Accounts
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
[Select]
Accounts Receivable Estimated Uncollectible %
Report bad debt expense
$97,000
[Select]
32,000
23,000
[Select]
10,000
6,000
$168,000
3.0%
4.0%
The year-end balance of the allowance for uncollectible accounts before any adjustment is $2,100. Use the information above to answer the following question
a. What amount of bad debt expense will the company report in its income statement for the current year?
7.0%
14.0%
b. Indicate the impact of current-year bad debt expense on the following amounts. If there is no net change in an item, select 'no net change.
Transaction
Total Assets
Net Income
25.0%
[Select]
c. What is the net accounts receivable balance that will be reported on the year-end balance sheet?
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