Homework Help is Here – Start Your Trial Now!
Business
Accounting
(b) Your Answer Correct Answer (Used) Show how accounts receivable would be presented on the balance sheet. (c) Accounts Receivable Less Allowance for Doubtful Accounts Net Accounts Receivable BRAMBLE CORPORATION Balance Sheet (Partial) Your answer is partially correct. Dollar effect of the year-end bad debt adjustment eTextbook and Media 570,900 What is the dollar effect of the year-end bad debt adjustment on the before-tax income? Save for Later Last saved 1 hour ago. 51,607 i 519,293 decrease Attempts: 3 of 5 used Submit Answer

(b) Your Answer Correct Answer (Used) Show how accounts receivable would be presented on the balance sheet. (c) Accounts Receivable Less Allowance for Doubtful Accounts Net Accounts Receivable BRAMBLE CORPORATION Balance Sheet (Partial) Your answer is partially correct. Dollar effect of the year-end bad debt adjustment eTextbook and Media 570,900 What is the dollar effect of the year-end bad debt adjustment on the before-tax income? Save for Later Last saved 1 hour ago. 51,607 i 519,293 decrease Attempts: 3 of 5 used Submit Answer

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
See similar textbooks
icon
Related questions
Question

Can someone please help me solve part (C) please? Parts A & B are already solved. Thank you!

**Bramble Corporation: Aging Schedule for Accounts Receivable** Bramble Corporation operates in an industry known for a high rate of bad debts. Before adjustments at year-end, the Accounts Receivable balance is $585,400 and there is a credit balance of $41,390 in Allowance for Doubtful Accounts. The allowance balance for the year-end is calculated using the following aging schedule: | Days Account Outstanding | Amount | Probability of Collection | |-------------------------------|----------|---------------------------| | Less than 16 days | $310,900 | 0.96 | | Between 16 and 30 days | 116,500 | 0.90 | | Between 31 and 45 days | 82,000 | 0.86 | | Between 46 and 60 days | 41,700 | 0.81 | | Between 61 and 75 days | 19,800 | 0.59 | | Over 75 days (to be written off) | 14,500 | 0.00 | **Calculation of Allowance for Doubtful Accounts:** The table above categorizes the accounts based on how long they've been outstanding. For each category, the potential uncollectible amount is determined by subtracting the probability of collection from 1 and applying it to the amount. This results in a calculated year-end balance for the Allowance for Doubtful Accounts of **$51,607**. **Conclusion:** With the aging schedule, Bramble Corporation effectively projects potential losses within its accounts receivable, ensuring accurate financial planning and management.
Transcribed Image Text:**Bramble Corporation: Aging Schedule for Accounts Receivable** Bramble Corporation operates in an industry known for a high rate of bad debts. Before adjustments at year-end, the Accounts Receivable balance is $585,400 and there is a credit balance of $41,390 in Allowance for Doubtful Accounts. The allowance balance for the year-end is calculated using the following aging schedule: | Days Account Outstanding | Amount | Probability of Collection | |-------------------------------|----------|---------------------------| | Less than 16 days | $310,900 | 0.96 | | Between 16 and 30 days | 116,500 | 0.90 | | Between 31 and 45 days | 82,000 | 0.86 | | Between 46 and 60 days | 41,700 | 0.81 | | Between 61 and 75 days | 19,800 | 0.59 | | Over 75 days (to be written off) | 14,500 | 0.00 | **Calculation of Allowance for Doubtful Accounts:** The table above categorizes the accounts based on how long they've been outstanding. For each category, the potential uncollectible amount is determined by subtracting the probability of collection from 1 and applying it to the amount. This results in a calculated year-end balance for the Allowance for Doubtful Accounts of **$51,607**. **Conclusion:** With the aging schedule, Bramble Corporation effectively projects potential losses within its accounts receivable, ensuring accurate financial planning and management.
## (b) Accounts Receivable Presentation on Balance Sheet **Bramble Corporation Balance Sheet (Partial)** - **Accounts Receivable**: $570,900 - **Less: Allowance for Doubtful Accounts**: $51,607 - **Net Accounts Receivable**: $519,293 This section of the balance sheet shows how accounts receivable is reported. The total accounts receivable is reduced by the allowance for doubtful accounts to arrive at net accounts receivable. --- ## (c) Year-End Bad Debt Adjustment Your answer is partially correct. **Question:** What is the dollar effect of the year-end bad debt adjustment on the before-tax income? - **Dollar effect of the year-end bad debt adjustment:** [Input Box] - **Effect Type:** Decrease You have attempted this question 3 out of 5 times. **Options:** - Save for Later - Submit Answer --- This information is critical for understanding how bad debt affects a company’s financial statements and net income.
Transcribed Image Text:## (b) Accounts Receivable Presentation on Balance Sheet **Bramble Corporation Balance Sheet (Partial)** - **Accounts Receivable**: $570,900 - **Less: Allowance for Doubtful Accounts**: $51,607 - **Net Accounts Receivable**: $519,293 This section of the balance sheet shows how accounts receivable is reported. The total accounts receivable is reduced by the allowance for doubtful accounts to arrive at net accounts receivable. --- ## (c) Year-End Bad Debt Adjustment Your answer is partially correct. **Question:** What is the dollar effect of the year-end bad debt adjustment on the before-tax income? - **Dollar effect of the year-end bad debt adjustment:** [Input Box] - **Effect Type:** Decrease You have attempted this question 3 out of 5 times. **Options:** - Save for Later - Submit Answer --- This information is critical for understanding how bad debt affects a company’s financial statements and net income.
Expert Solution
trending now

Trending now

This is a popular solution!

steps

Step by step

Solved in 4 steps

SEE SOLUTIONCheck out a sample Q&A here
Blurred answer
Knowledge Booster
Accounting for Income Taxes
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.
Similar questions
  • SEE MORE QUESTIONS
Recommended textbooks for you
FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
Accounting
ISBN:
9781259964947
Author:
Libby
Publisher:
MCG
Accounting
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education
SEE MORE TEXTBOOKS