At January 1, 2024, ABC Company reported an allowance for bad debts with a $7,190 credit balance. During 2024, ABC wrote-off as uncollectible accounts receivable totaling $12,530. At December 31, 2024, ABC Company had accounts receivable totaling $325,000 and prepared the following aging schedule: Accounts Receivable not past due 1-39 days past due 40-79 days past due 80-119 days past due over 119 days past due total $167,000 $ 52,000 $ 69,000 $ 26,000 $ 11,000 $325,000 %Uncollectible 2% 8% 14% 22% 45% Calculate the net realizable value of ABC Company's accounts receivable at December 31, 2024.

At January 1, 2024, ABC Company reported an allowance for bad debts with a $7,190 credit balance. During 2024, ABC wrote-off as uncollectible accounts receivable totaling $12,530. At December 31, 2024, ABC Company had accounts receivable totaling $325,000 and prepared the following aging schedule: Accounts Receivable not past due 1-39 days past due 40-79 days past due 80-119 days past due over 119 days past due total $167,000 $ 52,000 $ 69,000 $ 26,000 $ 11,000 $325,000 %Uncollectible 2% 8% 14% 22% 45% Calculate the net realizable value of ABC Company's accounts receivable at December 31, 2024.

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

At December 31, 2022, the trial balance of Skysong Company contained the following amounts before adjustment. Debit Credit Accounts Receivable $194,000 Allowance for Doubtful Accounts $ 1,200 Sales Revenue 901,000 (a) Prepare the adjusting entry at December 31, 2022, to record bad debt expense, assuming that the aging schedule indicates that $10,900 of accounts receivable will be uncollectible. (b) Repeat part (a), assuming that instead of a credit balance there is a $1,200 debit balance in Allowance for Doubtful Accounts. (c) During the next month, January 2023, a $2,800 account receivable is written off as uncollectible. Prepare the journal entry to record the write-off. (d) Repeat part (c), assuming that Skysong Company uses the direct write-off method instead of the allowance method in accounting for uncollectible accounts receivable. (Credit account titles are automatically indented when amount is entered. Do…
As of January 1, 2024, Barley Company had a credit balance of $520,000 in its allowance for uncollectible accounts. Based on experience, 2% of Barley’s gross accounts receivable have been uncollectible. During 2024, Barley wrote off $650,000 of accounts receivable. Barley’s gross accounts receivable as December 31, 2024 is $18,000,000. How much bad debt expense should Barley record for 2024?
Sheffield Corp. had a $300 credit balance in Allowance for Doubtful Accounts at December 31, 2022, before the current year's provision for uncollectible accounts. An aging of the accounts receivable revealed the following: Estimated Percentage Uncollectible Current Accounts $110,000 1 % 1-30 days past due 18,000 3 % 31-60 days past due 13,500 5 % 61-90 days past due 7,600 17 % Over 90 days past due 9,400 31 % Total Accounts Receivable $158,500 PART A Prepare the adjusting entry on December 31, 2022, to recognize bad debts expense. (Credit account titles are automatically indented when the amount is entered. Do not indent manually.) Account Titles and Explanation Debit Credit Bad Debt Expense Allowance for Doubtful Accounts PART B I NEED HELP WITH PART B Assume the same facts as above except that the Allowance for Doubtful Accounts account had a $300 debit balance before the current year's provision for uncollectible accounts. Prepare the adjusting entry for the current year's provision…
Pharoah Company has accounts receivable of $98,700 at March 31, 2022. Credit terms are 2/10, n/30. At March 31, 2022, there is a $2,045 credit balance in Allowance for Doubtful Accounts prior to adjustment. The company uses the percentage-of-receivables basis for estimating uncollectible accounts. The company’s estimates of bad debts are as shown below. Balance, March 31 Estimated PercentageUncollectible Age of Accounts 2022 2021 Current $68,400 $70,460 2 % 1–30 days past due 12,900 8,130 5 31–90 days past due 9,200 2,330 29 Over 90 days past due 8,200 1,180 47 $98,700 $82,100 Determine the total estimated uncollectibles at March 31, 2022. Total estimated uncollectibles $Enter a dollar amount
Wolfpack Inc.’s trial balance indicates the following select account balances at the end of 2022 before the year-end adjustment to record bad debts: Account Debit Credit Account Receivable 700000 Allowance of Doubtful Accounts 8000 Sales Revenue 9000000 A) At the end of 2022, Wolfpack’s management estimates that 3% of its ending gross Accounts Receivable account balance will be uncollectible. How do you prepare the 12/31/22 journal entry to record bad debts expense for 2022? What is the Net Realizable Value? B) Assume that on February 4 of the following year, Wolfpack specifically writes off the receivable balance for one of its customers. The customer owes Wolfpack $4,000. Prepare the specific write-off journal entry to record this uncollectible account.
Bonita Company’s unadjusted trial balance at December 31, 2020, included the following accounts. Debit Credit Accounts receivable $55,000 Allowance for doubtful accounts 6,980 Net sales $1,217,400 Bonita Company estimates uncollectible accounts will be 8% of gross accounts receivable. Determine its bad debt expense for 2020. Bad debt expense for 2020
The Manda Panda Company uses the allowance method to account for bad debts. At the beginning of 2018, theallowance account had a credit balance of $75,000. Credit sales for 2018 totaled $2,400,000 and the year-endaccounts receivable balance was $490,000. During this year, $73,000 in receivables were determined to be uncollectible. Manda Panda anticipates that 3% of all credit sales will ultimately become uncollectible. The fiscal yearends on December 31.Required:1. Does this situation describe a loss contingency? Explain.2. What is the bad debt expense that Manda Panda should report in its 2018 income statement?3. Prepare the appropriate journal entry to record the contingency.4. What is the net accounts receivable value Manda Panda should report in its 2018 balance sheet?
johnson company calculates its allowance for uncollectible accounts as 10% of its ending balance in gross accounts receivable. The allowance for uncollectable accounts had a credit balance of $12000 at the begining of 2024. no previously written off accounts recievable were reinstated during 2024. at 12/31/2024, gross accounts recievable totaled $200,100, and prior to recording the adjusting entry to recognize bad debt expenses for 2024, the allowance for uncollectable accounts had a debit balance of $22000. required 1. what was the balance in gross accounts recievable as of 12/31/2023? 2. what journal entry should johnson record to recognize bad debt expense for 2024? 3. assume johnson made no other adjustments of the allowance for uncollectable accounts during 2024. Determine the amount of accounts recievable written off during 2024. 4. if johnson instead used the direct write off method, what would bad debt expense be for 2024?
At December 31, 2021, Ayayai Company had a credit balance of $19,700 in Allowance for Doubtful Accounts. During 2022, Ayayai wrote off accounts totaling $11,800. One of those accounts of $2,100 was later collected. At December 31, 2022, an aging schedule indicated that the balance in Allowance for Doubtful Accounts should be $25,200.Prepare journal entries to record the 2022 transactions of Ayayai Company. (Credit account titles are automatically indented when amount is entered. Do not indent manually.
A company reports net accounts receivable of $100,000 on December 31, 2019. The Allowance for Bad Debts has a credit balance of $26,000 on December 1, 2019. An additional debit entry to Bad Debts Expense and credit to Allowance for Bad Debts for $5,600 was made on December 31, 2019. What is the balance of Accounts Receivable on December 31, 2019?
12/31/2020: During 2020, $10,000 in accounts receivable were written off. At the end of the second year of operations, Yolandi Company had $1,000,000 in sales and accounts receivable of $400,000. XYZ’s management has estimated that $17,000 in accounts receivable would be uncollectible. For the end of 2020, after the adjusting entry for bad debts was journalized, what is the balance in the following accounts: Bad debt expense: Allowance for doubtful accounts: For the end of 2020, what is the company's net realizable value?
On the year end of July 31, 2020, Rainbow Appliances had the following account balances before adjustments for bad debt was made. Net Credit Sales for the period $1,028,000 CR Accounts Receivable $656,000 DR AFDA $1,900 DR Do not enter dollar signs or commas in the input boxes. a) Use the year-end balances reported on the balance sheet and the aging schedule shown below to calculate the allowance for doubtful accounts. Aging Category Bad Debt % Balance Estimated Bad Debt Less than 30 days 2% $422,000 31-60 days 4% $105,000 61-90 days 11% $75,000 91-120 days 28% $37,000 Over 120 days 52% $17,000 Total $656,000 Prepare the journal entry to record bad debt expense for the year: Date Account Title and Explanation Debit Credit Jul 31 To record bad debt expense b) Assume instead that Rainbow Appliances used the income statement approach for estimating bad debt. If historical data indicates that approximately 2% of net credit sales are uncollectible, what amount is expected to be…