A portion of the current assets section of the December 31, 2019, balance sheet for Gibbs Co. Is presented here:Accounts receivableLess: Allowance for bad debts$ 21,700(2,900)The company's accounting records revealed the following Information for the year ended December 31, 2020:Sales (all on account)Cash collections from customer'sAccounts written offBad debts expense (accrued at 12/31/20)At December 31, 2020Accounts receivableLess: Allowance for bad debtsAccounts receivable (Net)$ 18,800$$ 165,500151,000Required:Calculate the net realizable value of accounts receivable at December 31, 2020, and prepare the appropriate balance sheetpresentation for Gibbs Co. as of that point in time. (Hint. Use T-accounts to analyze the Accounts Receivable and Allowance for BadDebts accounts.)4,1005,0000

Allowance for bad debts is a contra asset account and is subtracted from the account receivable to…

arrent assets section of Accounts receivable Less: Allowance for bad debts $ 21,700 (2,900) Sales (all on account) Cash collections from customers Accounts written off Bad debts expense (accrued at 12/31/20) cember 31, 2019, Dalarice sheet for At December 31, 2020 Accounts receivable Less: Allowance for bad debts Accounts receivable (Net) The company's accounting records revealed the following Information for the year ended December 31, 2020: $ 18,800 $ esented here. $ 165,500 151,000 4,100 5,000 Required: Calculate the net realizable value of accounts receivable at December 31, 2020, and prepare the appropriate balance sheet presentation for Gibbs Co. as of that point in time. (Hint: Use T-accounts to analyze the Accounts Receivable and Allowance for Bad Debts accounts.)

arrent assets section of Accounts receivable Less: Allowance for bad debts $ 21,700 (2,900) Sales (all on account) Cash collections from customers Accounts written off Bad debts expense (accrued at 12/31/20) cember 31, 2019, Dalarice sheet for At December 31, 2020 Accounts receivable Less: Allowance for bad debts Accounts receivable (Net) The company's accounting records revealed the following Information for the year ended December 31, 2020: $ 18,800 $ esented here. $ 165,500 151,000 4,100 5,000 Required: Calculate the net realizable value of accounts receivable at December 31, 2020, and prepare the appropriate balance sheet presentation for Gibbs Co. as of that point in time. (Hint: Use T-accounts to analyze the Accounts Receivable and Allowance for Bad Debts accounts.)

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

The following information is related to December 31, 2024 balances. ● Accounts receivable Allowance for doubtful accounts (credit) Cash realizable value $1570000 (111000) 1459000 During 2025 sales on account were $375000 and collections on account were $230000. The company wrote off $23000 in uncollectible accounts. An analysis of outstanding receivable accounts at year end indicated that uncollectibles should be estimated at $144000. The change in the cash realizable value from 12/31/24 to 12/31/25 was
H
answer in text form with explanation , narration, calculation for every steps
Omega Company prepared an aging of accounts receivable on December 31, 2018 and determined that the net realizable value of the accounts receivable was P2,500,000. Alow ance for uncolectible accounts on January 1 Accounts written off as uncollectible Accounts receivable on December 31 Uncollectible accounts recovery 280,000 230,000 2,700,000 50,000 What is the uncollectible accounts expense for the current year?
The following financial information pertains to SPACE Limited: Accounts receivable at December 31, 2018 $ 900,000 Credit sales for 2019 6,800,000 Cash collection on credit sales during 2019 6,540,000 Allowance for Impairment at December 31, 2018 45,000 Accounts receivable written off on August 31, 2019 60,000 Previously written off accounts receivable was received on September 25, 2019 10,000 An aging analysis estimates uncollectible receivables at December 31, 2019 to be $80,000. Required: (Explanation for each journal entry is NOT required) a. Prepare the journal entry for the accounts receivable written off during 2019. b. Prepare the journal entry for the event occurring on September 25, 2019 c. Prepare the year-end adjusting entry required to record the impairment loss of receivable. Assume the statement of financial position approach is used. d. Explain how the transaction in (c) affects the accounting equation. e. What is the net realizable value of accounts receivable to be…
Injae Trading Company prepared an aging of its accounts receivable on December 31, 2020 and determined that the net realizable value of the Accounts Receivable was P2,500,000. Additional data is available as follows: Allowance for bad debts, January 1 P 280,000 • Accounts written off as uncollectible 230,000 • Accounts receivable, December 31 2,700,000 • Uncollectible accounts recovery 50,000 For the year ended December 31, 2017, what was the bad debts expense? A. P 230,000 B. P200,000 C. P150,000 D. P100,000
A recent report for UPS contained the following data: (in thousands) Accounts receivable Less: Allowance for bad debts Net accounts receivable Bad debt expense Current year $1,034,608 36,800 $ 997,808 $55,147 Previous year $ 805,495 38,225 S 767,270 $31,388 Required: 1. Prepare the journal entry for the amount of accounts receivable that were actually written off during the current year. 2. Prepare the journal entry to record the bad debt expense for the current year 3. What is the purpose of the account "Allowance for doubtful accounts"? Although the normal balance of this account is a credit balance, it sometimes has a debit balance. Briefly explain how this can happen.
On 1 June, Mason and Boyce had Accounts Receivable and Allowance for Doubtful Debts accounts as below. Ignore GST. Accounts receivable 1/6 balance 849,555 Allowance for doubtful debts 1/6 balance 12,100 During June, the following transactions occurred: Revenue earned on credit, $1,195,000. Sales returns, $24,100. Accounts receivable collected, $1,400,000. Accounts written off as uncollectible, $15,851. Based on an ageing of accounts receivable on 30 June, the firm determined that the Allowance for Doubtful Debts account should have a credit balance of $13,500 on the balance sheet as at 30 June. Ignore GST. Required: (a) Prepare general journal entries to record the four transactions and to adjust the Allowance for Doubtful Debts account. (b) Showhowaccountsreceivableandtheallowancefordoubtfuldebtswouldappearonthebalance sheet at 30 June. (c) On 29 June, Kim Ltd, whose $2,400 account had been written off as uncollectable in June,…
How much is the accounts receivable as of December 31, 2019? * 460,800 434,400 405,600 398,400
The Phillips Company gathered the following information pertaining to its year ended December 31, 2020 prior to any adjustments: Net Sales for the Year $780,000 Accounts Receivable, 12/31 165,000 Allowance for Uncollectible Accounts, 12/31 2,200 Debit Assume that Phillips uses the percentage of outstanding accounts receivable method for uncollectible amounts. An aging of accounts receivable indicates that $9,550 will be uncollectible. Phillips will report the following amounts in its 2020 financial statements: Select one: a. Bad debts expense $11,750; Net accounts receivable $155,450 b. Bad debts expense $9,550; Net accounts receivable $155,450 c. Bad debts expense $9,550; Net accounts receivable $157,650 d. Bad debts expense $1,750; Net accounts receivable $157,650 e. Bad debts expense $7,350; Net accounts receivable $157,650
Please do not give solution in image format thanku
Question: What is the amount of bad debts expense in its December 31, 2022 Statement of Comprehensive income assuming the Dolor’s policy is to provide 5% of the outstanding balance of accounts receivable as uncollectible and beginning balance of allowance of P20,000?