At the beginning of 20X1, N8p Hospital reported Accounts Receivable $10000 and Allowance for Uncollectible Accounts $1800 (credit). During 20X1, before recording the year-end adjusting entries, the Hospital recorded credit sales revenue $16000 and wrote off accounts receivable $200. The following balance was reported on December 31, 20X1, before any adjustment: Accounts Receivable = $13000. The Hospital estimates uncollectible accounts based on an aging of accounts receivable as shown below. Age Group Not yet due 0-30 days past due More than 30 days past due Total $ O $10700 O $8200 O $10900 O $13000 Amount Receivable $ Required: Please choose the best answer to the following questions based on the above information. On December 31, 20X1, what is the amount of accounts receivable that the Hospital expects to collect from customers? Estimated Percent Uncollectible 8,000 10% 4,000 20% 1,000 50% 13,000 What is the amount of bad debt expense that the Hospital recorded in its December 31, 20X1, adjustment to the allowance account? O $1900 O $300 O $500 $2100

At the beginning of 20X1, N8p Hospital reported Accounts Receivable $10000 and Allowance for Uncollectible Accounts $1800 (credit). During 20X1, before recording the year-end adjusting entries, the Hospital recorded credit sales revenue $16000 and wrote off accounts receivable $200. The following balance was reported on December 31, 20X1, before any adjustment: Accounts Receivable = $13000. The Hospital estimates uncollectible accounts based on an aging of accounts receivable as shown below. Age Group Not yet due 0-30 days past due More than 30 days past due Total $ O $10700 O $8200 O $10900 O $13000 Amount Receivable $ Required: Please choose the best answer to the following questions based on the above information. On December 31, 20X1, what is the amount of accounts receivable that the Hospital expects to collect from customers? Estimated Percent Uncollectible 8,000 10% 4,000 20% 1,000 50% 13,000 What is the amount of bad debt expense that the Hospital recorded in its December 31, 20X1, adjustment to the allowance account? O $1900 O $300 O $500 $2100

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Domino Company ages its accounts receivable to estimate uncollectible accounts expense. Domino began Year 2 with balances in Accounts Receivable and Allowance for Doubtful Accounts of $44,010 and $3,440, respectively. During Year 2, the company wrote off $2,620 in uncollectible accounts. In preparation for the company's estimate of uncollectible accounts expense for Year 2, Domino prepared the following aging schedule: Number of Days Past Due Current 0-30 31-60 61-90 Over 90 Total Multiple Choice $4,296 What amount will be reported as uncollectible accounts expense on the Year 2 income statement? $1,676 $2,620 Receivables Amount $70,000 $5,116 26,700 6,760 3,420 3,100 $ 109,980 % Likely to be Uncollectible 1% 5% 10% 25% 50%
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The Physical Therapy Center specializes in helping patients regain motor skills after serious accidents. The center has the following balances on December 31, 2021, before any adjustment: Accounts Receivable = $110,000; Allowance for Uncollectible Accounts = $4,000 (debit). The center estimates uncollectible accounts based on an aging of accounts receivable as shown below. Age Group AmountReceivable Estimated PercentUncollectible Not yet due $ 60,000 4% 0 – 60 days past due 26,000 20% 61–120 days past due 16,000 30% More than 120 days past due 8,000 85% Total $110,000 Required: 1. Estimate the amount of uncollectible receivables. 2. Record the adjustment for uncollectible accounts on December 31, 2021. 3. Calculate net accounts receivable.
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Determine the amount to be added to Allowance for Doubtful Accounts in each of the following cases and indicate the ending balance in each case. a. Credit balance of $350 in Allowance for Doubtful Accounts just prior to adjustment. Using the aging method, the balance of Allowance for Doubtful Accounts is estimated as $7,220. Amount added Ending balance b. Credit balance of $350 in Allowance for Doubtful Accounts just prior to adjustment. Bad debt expense is estimated at 2% of credit sales, which totaled $980,000 for the year. Amount added Ending balance MacBook Pro
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Daley Company prepared the following aging of receivables analysis at December 31. Total Days Past Due 0 1 to 30 31 to 60 61 to 90 Over 90 Accounts receivable $ 575,000 $ 397,000 $ 91,000 $ 37,000 $ 19,000 $ 31,000 Percent uncollectible 2% 3% 6% 8% 11% Complete the table below to calculate the estimated balance of Allowance for Doubtful Accounts using aging of accounts receivable. Prepare the adjusting entry to record bad debts expense using the estimate from part a. Assume the unadjusted balance in the Allowance for Doubtful Accounts is a $3,700 credit. Prepare the adjusting entry to record bad debts expense using the estimate from part a. Assume the unadjusted balance in the Allowance for Doubtful Accounts is a $200 debit. Complete the table below to calculate the estimated balance of Allowance for Doubtful Accounts using aging of accounts receivable. Accounts Receivable x Percent Uncollectible (%) = Estimated…