Calculate the allowance for doubtful accounts using the accountsreceivable aging method using the following information:Beginning Allowance for Doubtful Accounts Balance: $5,000Probability of Non-Collection2%4%5%10%25%Age Group0-30 days past due31-60 days past due61-120 days past duc121-180 days past dueOver 180 days past duc$13,100$142,500$5,050$5,000Balance$100,000$20,000$15,000$2,500$5,000

The allowance for doubtful accounts is a contra-asset account that companies use to estimate and…

Calculate the allowance for doubtful accounts using the account receivable aging method using the following information: Beginning Allowance for Doubtful Accounts Balance: $5,000 Age Group 0-30 days past due 31-60 days past due Probability of Non-Collection 2% 4% 61-120 days past duc 5% 10% 121-180 days past due Over 180 days past duc 25% $13,100 $142,500 $5,050 $5,000 Balance $100,000 $20,000 $15,000 $2,500 $5,000

Calculate the allowance for doubtful accounts using the account receivable aging method using the following information: Beginning Allowance for Doubtful Accounts Balance: $5,000 Age Group 0-30 days past due 31-60 days past due Probability of Non-Collection 2% 4% 61-120 days past duc 5% 10% 121-180 days past due Over 180 days past duc 25% $13,100 $142,500 $5,050 $5,000 Balance $100,000 $20,000 $15,000 $2,500 $5,000

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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Analysis of Receivables Method At the end of the current year, Accounts Recelvable has a balance of $465,000; Allowance for Doubtful Accounts has a debit balance of $4,000; and sales for the year total $2,090,000. Using the aging method, the balance of Allowance for Doubtful Accounts is estimated as $18,400. a. Determine the amount of the adjusting entry for uncollectible accounts. b. Determine the adjusted balances of Accounts Receivable, Allowance for Doubtful Accounts, and Bad Debt Expense. Accounts Receivable Allowance for Doubtful Accounts Bad Debt Expense C. Determine the net realizable value of accounts receivable.
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The ADA has the below table regarding its account receivable: Age of Accounts Balance, June 30 Estimated Percentage Uncollectible 1-30 days $130,000 2.00% 31-60 days 70,000 5.00% 61-90 days 32,500 20.00% Over 90 days 3,000 50.00% If the opening balance of Allowance for Doubtful accounts is $7,050, the entries to record estimated uncollectible receivables this year will be: Select one: a. Bad debt expense $7,050 Allowance for doubtful accounts $7,050 b. Allowance for doubtful accounts $14,100 Account receivable $14,100 c. Bad debt expense $14,100 Allowance for doubtful accounts $14,100 d. Account receivable $7,100 Bad debt expense $7,100
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