At December 1, 2023, Imalda Inc. reported the following information on its statement of financial position: Accounts receivable $ 154,000 Allowance for doubtful accounts 4, 500 (credit balance) The following transactions were completed during December 2023: December 5 Sold merchandise items for $67,000. An amount of $19,000 was received in cash and the rest on account; terms 2/10, n/60. The total cost of sales was $35,000. December 12 Collected amount due from customers for credit sales made on December 5. December 20 Collected $90,000 in cash from customers for credit sales made in November 2023. December 26 One of Imalda's customers that owed $3,000 to the company experienced financial problems and was forced to close its business in December. The full amount was considered uncollectible. The company records sales revenue net of the sales discount. If a customer pays after the discount period, the sales discount that is forfeited is recorded in a separate account (sales discounts forfeited) and closed to sales revenue at the end of the accounting period. Aging of Accounts Receivable Current 1-30 days past due 31-60 days past due Over 60 days past due Total $ 42,000 $31,500 $5,000 $6,500 Estimated % uncollectible 1% 2% 10% 30% Required: 1. Determine the balances of accounts receivable and allowance for doubtful accounts at December 31, 2023, based on the preceding information. (Hint: use T - accounts to keep track of the effects of the transactions above on these accounts.)

Managerial Accounting: The Cornerstone of Business Decision-Making
7th Edition
ISBN:9781337115773
Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Publisher:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Chapter15: Financial Statement Analysis
Section: Chapter Questions
Problem 14BEA: Last year, Nikkola Company had net sales of 2.299.500,000 and cost of goods sold of 1,755,000,000....
icon
Related questions
Question
At December 1, 2023, Imalda Inc. reported the following information on its statement of financial position:
Accounts receivable $ 154,000
Allowance for doubtful accounts 4, 500 (credit balance)
The following transactions were completed during December 2023:
December 5 Sold merchandise items for $67,000. An amount of $19,000 was received in cash and the rest on account;
terms 2/10, n/60. The total cost of sales was $35,000.
December 12 Collected amount due from customers for credit sales made on December 5.
December 20 Collected $90,000 in cash from customers for credit sales made in November 2023.
December 26 One of Imalda's customers that owed $3,000 to the company experienced financial problems and was
forced to close its business in December. The full amount was considered uncollectible.
The company records sales revenue net of the sales discount. If a customer pays after the discount period, the sales
discount that is forfeited is recorded in a separate account (sales discounts forfeited) and closed to sales revenue at the
end of the accounting period.
Aging of Accounts Receivable
Current 1-30 days
past due 31-60 days
past due Over 60 days
past due
Total $ 42,000 $31,500 $5,000 $6,500
Estimated % uncollectible 1% 2% 10% 30%
Required:
1. Determine the balances of accounts receivable and allowance for doubtful accounts at December 31, 2023, based
on the preceding information. (Hint: use T - accounts to keep track of the effects of the transactions above on these
accounts.)
Transcribed Image Text:At December 1, 2023, Imalda Inc. reported the following information on its statement of financial position: Accounts receivable $ 154,000 Allowance for doubtful accounts 4, 500 (credit balance) The following transactions were completed during December 2023: December 5 Sold merchandise items for $67,000. An amount of $19,000 was received in cash and the rest on account; terms 2/10, n/60. The total cost of sales was $35,000. December 12 Collected amount due from customers for credit sales made on December 5. December 20 Collected $90,000 in cash from customers for credit sales made in November 2023. December 26 One of Imalda's customers that owed $3,000 to the company experienced financial problems and was forced to close its business in December. The full amount was considered uncollectible. The company records sales revenue net of the sales discount. If a customer pays after the discount period, the sales discount that is forfeited is recorded in a separate account (sales discounts forfeited) and closed to sales revenue at the end of the accounting period. Aging of Accounts Receivable Current 1-30 days past due 31-60 days past due Over 60 days past due Total $ 42,000 $31,500 $5,000 $6,500 Estimated % uncollectible 1% 2% 10% 30% Required: 1. Determine the balances of accounts receivable and allowance for doubtful accounts at December 31, 2023, based on the preceding information. (Hint: use T - accounts to keep track of the effects of the transactions above on these accounts.)
Expert Solution
steps

Step by step

Solved in 2 steps

Blurred answer
Similar questions
  • SEE MORE QUESTIONS
Recommended textbooks for you
Managerial Accounting: The Cornerstone of Busines…
Managerial Accounting: The Cornerstone of Busines…
Accounting
ISBN:
9781337115773
Author:
Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Publisher:
Cengage Learning
Principles of Accounting Volume 1
Principles of Accounting Volume 1
Accounting
ISBN:
9781947172685
Author:
OpenStax
Publisher:
OpenStax College
College Accounting, Chapters 1-27
College Accounting, Chapters 1-27
Accounting
ISBN:
9781337794756
Author:
HEINTZ, James A.
Publisher:
Cengage Learning,
Intermediate Accounting: Reporting And Analysis
Intermediate Accounting: Reporting And Analysis
Accounting
ISBN:
9781337788281
Author:
James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:
Cengage Learning
College Accounting, Chapters 1-27 (New in Account…
College Accounting, Chapters 1-27 (New in Account…
Accounting
ISBN:
9781305666160
Author:
James A. Heintz, Robert W. Parry
Publisher:
Cengage Learning
Cornerstones of Financial Accounting
Cornerstones of Financial Accounting
Accounting
ISBN:
9781337690881
Author:
Jay Rich, Jeff Jones
Publisher:
Cengage Learning