Age in daysReceivable balances0- 15180,00016 - 30108,00031 - 6095,00061 - 9072,00091 - 12054,500121 - 15036,000Total accounts receivables545,500BFR Co. uses the aging of receivables method. The estimated percentages of collectability based onpast experience are shown below:Accounts that are overdue for less than 31 days97%Accounts that are overdue 31 – 60 daysAccounts that are overdue 61 - 90 days90%85%Accounts that are overdue 91 - 120 daysAccounts that are overdue for over 120 days65%40%The allowance for doubtful accounts has a balance of P18,000 as of January 1, 2020. Write-offs andrecoveries during the year amounted to P6,000 and P3,000, respectively.How much is the doubtful accounts expense for the year? BFR Co. sells to wholesalers on terms of 2/15, net 30. An analysis of BFR Co.'s trade receivablebalances on December 31, 20x1, revealed the following:Age in daysReceivable balances0- 15180,00016 - 30108,00031 - 6095,00061- 9072 000

Doubtful accounts are those accounts to whom business has made credit sales on account and it is…

Age in days Receivable balances 0- 15 180,000 16 - 30 108,000 31 - 60 95,000 61 90 72,000 91 - 120 54,500 121 - 150 36,000 Total accounts receivables 545,500 BFR Co. uses the aging of receivables method. The estimated percentages of collectability based on past experience are shown below: Accounts that are overdue for less than 31 days 97% Accounts that are overdue 31 - 60 days Accounts that are overdue 61 - 90 days 90% 85% Accounts that are overdue 91 - 120 days 65% Accounts that are overdue for over 120 days 40% The allowance for doubtful accounts has a balance of P18,000 as of January 1, 2020. Write-offs and recoveries during the year amounted to P6,000 and P3,000, respectively. How much is the doubtful accounts expense for the vear?

Age in days Receivable balances 0- 15 180,000 16 - 30 108,000 31 - 60 95,000 61 90 72,000 91 - 120 54,500 121 - 150 36,000 Total accounts receivables 545,500 BFR Co. uses the aging of receivables method. The estimated percentages of collectability based on past experience are shown below: Accounts that are overdue for less than 31 days 97% Accounts that are overdue 31 - 60 days Accounts that are overdue 61 - 90 days 90% 85% Accounts that are overdue 91 - 120 days 65% Accounts that are overdue for over 120 days 40% The allowance for doubtful accounts has a balance of P18,000 as of January 1, 2020. Write-offs and recoveries during the year amounted to P6,000 and P3,000, respectively. How much is the doubtful accounts expense for the vear?

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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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…
Estimating Allowance for Doubtful Accounts Kirchhoff Industries has a past history of uncollectible accounts, as follows. Age Class PercentUncollectible Not past due 2% 1-30 days past due 4 31-60 days past due 18 61-90 days past due 40 Over 90 days past due 75 Estimate the allowance for doubtful accounts, based on the aging of receivables schedule below. Kirchhoff Industries Estimate the Allowance for Doubtful Accounts Balance Not PastDue Days PastDue 1-30 Days PastDue 31-60 Days PastDue 61-90 Days PastDue Over 90 Subtotals $1,050,000 $600,000 $220,000 $115,000 $85,000 $30,000 Conover Industries 30,000 30,000 Keystone Company 18,000 18,000 Moxie Creek Inc. 9,000 9,000 Rainbow Company 26,400 26,400 Swanson Company 46,600 46,600 Total receivables 1,180,000 626,400 266,600 124,000 103,000 60,000 Percentage uncollectible 2% 4% 18% 40% 75%…
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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%
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Daley Company prepared the following aging of receivables analysis at December 31. Total Days Past Due 0 1 to 30 31 to 60 61 to 90 Over 90 Accounts receivable $ 575,000 $ 397,000 $ 91,000 $ 37,000 $ 19,000 $ 31,000 Percent uncollectible 2% 3% 6% 8% 11% Complete the table below to calculate the estimated balance of Allowance for Doubtful Accounts using aging of accounts receivable. 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 $3,700 credit. 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 $200 debit. Complete the table below to calculate the estimated balance of Allowance for Doubtful Accounts using aging of accounts receivable. Accounts Receivable x Percent Uncollectible (%) = Estimated…
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What is the value of the total assets?