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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A year-end review of Accounts Receivable and estimated uncollectible percentages revealed the following: $1300. Days Outstanding 1-30 days 2% 31-60 days 5% 61-90 days 10% Over 90 days 52% Before the year-end adjustment, the credit balance in Allowance for Uncollectible Accounts was $1100. Under the aging-of- receivables method, the Uncollectible-Account Expense at year-end is: $9390. $10,490. Accounts Receivable $8290. Est. Percent Uncollectible $65,000 $45,000 $22,000 $7000
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Estimating Bad Debts Expense and Reporting Receivables At December 31, Barber Company had a balance of $630,000 in its accounts receivable and an unused balance of $3,900 in its allowance for uncollectible accounts. The company then aged its accounts as follows. Current $519,000 1-60 days past due 72,000 61-180 days past due 25,500 Over 180 days past due 13,500 Total accounts receivable $630,000 The company has experienced losses as follows: 1% of current balances, 5% of balances 1-60 days past due, 15% of balances 61-180 days past due, and 40% of balances over 180 days past due. The company continues to base its allowance for uncollectible accounts on this aging analysis and percentages. a. What amount of bad debts expense does Barber report on its income statement for the year? $ 14,115 b. Show how Barber's December 31 balance sheet will report the accounts receivable and the allowance for uncollectible accounts. Note: Round your answers to the nearest whole dollar. Note: Do not use…
Estimating Uncollectible Accounts and Reporting Accounts ReceivableCollins Company analyzes its accounts receivable at December 31, and arrives at the aged categories below along with the percentages that are estimated as uncollectible. Age Group Accounts Receivable Estimated Loss % 0-30 days past due $110,000 1% 31-60 days past due 40,000 2 61-120 days past due 27,000 5 121-180 days past due 14,000 10 Over 180 days past due 9,000 25 Total accounts receivable $200,000 The balance of the allowance for uncollectible accounts is $1,100 on December 31, before any adjustments. (a) What amount of bad debts expense will Collins report in its income statement for the year?$Answer? (b) Use the financial statement effects template to record Collin's bad debts expense for the year. Use negative signs with your answers, when appropriate. Balance Sheet Transaction Cash Asset + Noncash Assets = Liabilities + Contributed Capital + Earned Capital…
A year-end review of Accounts Receivable and estimated uncollectible percentages revealed the following: 1-30 days $120,000 1% 31-60 days $80,000 3% 61-90 days $20,000 8% Over 90 days $8,000 40% The Allowance for Uncollectible Accounts had a credit balance before adjustment of $2,000. Under the aging-of-receivables method, the uncollectible-account expense for the year is:
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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