Aging Analysis of Accounts Receivable Cowen's, a large department store located in a metropolitan arca, been experiencing difficulty in estimating its bad debts. The company has decided to prepare an aging sched for its outstanding accounts receivable and estimate bad debts by the due dates of its receivables. This analy discloses the following information: Balance Age of Receivable Estimated Percentage Uncollectible $193,000 114,000 73,000 41,000 25,000 19,000 $465,000 Under 30 days 30-60 days 61-120 days 121-240 days 241-360 days Over 360 days 0.8% 2.0% 5.0% 20.0% 35.0% 60.0% Required: 1. Use the preceding analysis to compute the estimated amount of uncollectible receivables. 2. Prepare the journal entry to record Cowen's estimated uncollectibles, assuming the balance in Allowance for Doubtful Accounts prior to adjustment is: a. b. $3,000 (debit) $2,800 (credit) c.
Aging Analysis of Accounts Receivable Cowen's, a large department store located in a metropolitan arca, been experiencing difficulty in estimating its bad debts. The company has decided to prepare an aging sched for its outstanding accounts receivable and estimate bad debts by the due dates of its receivables. This analy discloses the following information: Balance Age of Receivable Estimated Percentage Uncollectible $193,000 114,000 73,000 41,000 25,000 19,000 $465,000 Under 30 days 30-60 days 61-120 days 121-240 days 241-360 days Over 360 days 0.8% 2.0% 5.0% 20.0% 35.0% 60.0% Required: 1. Use the preceding analysis to compute the estimated amount of uncollectible receivables. 2. Prepare the journal entry to record Cowen's estimated uncollectibles, assuming the balance in Allowance for Doubtful Accounts prior to adjustment is: a. b. $3,000 (debit) $2,800 (credit) c.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
This what I need help with completing and where to place the figures.
This the spreadsheet for P6-10 to be complete the shaded cells
Transcribed Image Text:E6-10
Aging Analysis of Accounts Receivable Cowen's, a large department store located in a metropolitan arca, has
been experiencing difficulty in estimating its bad debts. The company has decided to prepare an aging schedule
for its outstanding accounts receivable and estimate bad debts by the due dates of its receivables. This analysis
discloses the following information:
LO 6.5
Balance
Age of Receivable
Estimated Percentage Uncollectible
$193,000
114,000
73,000
41,000
25,000
19,000
$465,000
Under 30 days
30-60 days
61-120 days
121-240 days
241-360 days
Over 360 days
0.8%
2.0%
SHOW
ME HOW
5.0%
20.0%
35.0%
60.0%
Required:
1. Use the preceding analysis to compute the estimated amount of uncollectible receivables.
2. Prepare the journal entry to record Cowen's estimated uncollectibles, assuming the balance in Allowance for
Doubtful Accounts prior to adjustment is:
a. 0
b. $3,000 (debit)
c. $2,800 (credit)
Transcribed Image Text:File
Ноme
Insert
Page Layout
Formulas
Data
Review
View
Help
Arial
10
- A A
2 Wrap Text
General
Paste
BIU
EEE EE E Merge & Center
$- % 9 8 8
Conc
Forma
Clipboard
Font
Alignment
Number
K3
fe
C
D
E
G
M
1 P6-10
Name:
SHEWANDA HAMILTON
· Enter the appropriate account titles in the shaded cells in column C.
· Enter the corresponding amounts in the shaded cells of columns H and J.
• The account titles are required to be entered but are not graded.
• An asterisk (*) will disappear when a correct amount is entered in the outlined cells.
2
3
4.
6
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
P6-10
Ready
Type here to search
12
I0
40
%23
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 2 steps with 2 images
Recommended textbooks for you
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education