At December 31, 2021, before any year-end adjustments, the Accounts Receivable balance of Alpha Company, Inc., is $390,000. The Allowance for Uncollectible Accounts has a(n) $15.500 credit balance. Alpha prepares the following aging schedule for Accounts Receivable: (Click the icon to view the aging schedule.) Read the requirements. The credit balance at December 31 in Allowance for Uncollectible Accounts should be Thus, the current balance of the allowance account is Requirement 2. Make the entry required by the aging schedule. Prepare a T-account for the allowance. First, make the entry required by the aging schedule. (Record debits first, then credits. Exclude explanations from any journal entries.) Journal Entry Date Dec 31 Accounts Now, prepare a T-account for the allowance. Debit The current balance is Credit Data table Total Balance $390,000 Estim scollectible 1-30 Days $160,000 00% Age of Accounts 31-60 Days $120,000 30% 61-90 Days $80,000 50% Over 90 Days BX $30,000 40.0 %
At December 31, 2021, before any year-end adjustments, the Accounts Receivable balance of Alpha Company, Inc., is $390,000. The Allowance for Uncollectible Accounts has a(n) $15.500 credit balance. Alpha prepares the following aging schedule for Accounts Receivable: (Click the icon to view the aging schedule.) Read the requirements. The credit balance at December 31 in Allowance for Uncollectible Accounts should be Thus, the current balance of the allowance account is Requirement 2. Make the entry required by the aging schedule. Prepare a T-account for the allowance. First, make the entry required by the aging schedule. (Record debits first, then credits. Exclude explanations from any journal entries.) Journal Entry Date Dec 31 Accounts Now, prepare a T-account for the allowance. Debit The current balance is Credit Data table Total Balance $390,000 Estim scollectible 1-30 Days $160,000 00% Age of Accounts 31-60 Days $120,000 30% 61-90 Days $80,000 50% Over 90 Days BX $30,000 40.0 %
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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At the end of the accounting period, a financial statement is prepared by every company, then at that time while preparing the financial statement, the company determines among its total receivable amount how much portion of receivables is collected by the company during that accounting period.
Accounts Receivable
The word “account receivable” means the payment is yet to be made for the work that is already done. Generally, each and every business sells its goods and services either in cash or in credit. So, when the goods are sold on credit account receivable arise which means the company is going to get the payment from its customer to whom the goods are sold on credit. Usually, the credit period may be for a very short period of time and in some rare cases it takes a year.
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Transcribed Image Text:At December 31, 2021, before any year-end adjustments, the Accounts Receivable balance of Alpha Company, Inc., is $390,000. The Allowance for Uncollectible Accounts has a(n) $15.500 credit balance. Alpha prepares the
following aging schedule for Accounts Receivable:
(Click the icon to view the aging schedule.)
Read the requirements.
The credit balance at December 31 in Allowance for Uncollectible Accounts should be
Thus, the current balance of the allowance account is
Date
Dec 31
Requirement 2. Make the entry required by the aging schedule. Prepare a T-account for the allowance.
First, make the entry required by the aging schedule. (Record debits first, then credits. Exclude explanations from any journal entries.)
Journal Entry
Accounts
Now, prepare a T-account for the allowance.
Allowance for Uncollectible Accounts
Debit
Credit
O
Requirement 3. Show how Alpha will report Accounts Receivable on its December 31 balance sheet.
First show the single line presentation.
The current balance is
Data table
Total Balance
$390,000
Estimated uncollectible
1-30 Days
$160,000
0.6 %
Print
Age of Accounts
31-60 Days 61-90 Days
$120,000
$80,000
2.0 %
5.0 %
Done
Over 90 Days
- X
$30,000
40.0 %
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