Casilda Company uses the aging approach to estimate bad debt expense. The ending balance of each account receivable is aged onthe basis of three time periods as follows: (1) not yet due, $50,100; (2) up to 180 days past due, $15,300; and (3) more than 180 dayspast due, $4,500. Experience has shown that for each age group, the average loss rate on the amount of the receivables at year-enddue to uncollectibility is (1) 4 percent, (2) 12 percent, and (3) 30 percent, respectively. At December 31, the end of the current year, theAllowance for Doubtful Accounts balance is $400 (credit) before the end-of-period adjusting entry is made.Required:1. Prepare the appropriate bad debt expense adjusting entry for the current year.2. Show how the various accounts related to accounts receivable should be shown on the December 31, current year, balance sheetComplete this question by entering your answers in the tabs below. Journal entry worksheet<1Record the adjusting journal entry for bad debt expense.Note: Enter debits before credits.CreditDateGeneral JournalDebitNo journal entry requiredDecember 31Record entryView general journalClear entry

In case of a credit sale, the customer is given an option to make payment for the sale within a…

Answered: Casilda Company uses the aging approach…

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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Compare Two Methods of Accounting for Uncollectible Receivables been obtained from the accounts: Required: Assemble the desired data. Enter a decrease in the amount of expense as a negative number and all other amounts as positive numbers. Call Systems Company Bad Debt Expense
Glazer Company estimates its doubtful accounts by aging its accounts receivable and applying percentages to various aged categories of accounts. The Glazer Company computes a total of $10,800 in estimated doubtful accounts as of December 31. Its Accounts Receivable account has a balance of $338,400 and its Allowance for Doubtful Accounts has a credit balance of $1,800 before adjustment at December 31. How much bad debts expense will Glazer report for the year? Select one: O A. $11,520 O B. $9,000 O C. $10,080 O D. $1,440.
Starlight, a Broadway media firm, uses the balance sheet approach to estimate uncollectible accounts expense. At year-end an aging of the accounts receivable produced the following classification: Not yet due.. $500,000 1-30 days past due. 110,000 31-60 days past due. 50,000 61-90 days past due.. 30,000 Over 90 days past due.. 60,000 Total. $750,000 On the basis of past experience, the company estimated the percentages probably uncollectible for the above five age groups to be as follows: Group 1, 1%, Group 2, 3%, Group 3, 10%; Group 4, 20%; and Group 5, 50%. The Allowance for Doubtful Accounts before adjustments at December 31 showed a credit balance of $4,700. Vhat is the estimated amount of uncollectible accounts based on the above classification by age groups and the amount of the adjustment needed to bring the Allowance or Doubtful Accounts to the proper amount? DA. $44,600 and $4,700 O B. $49,300 and $44,600 O C. $49,300 and $54,000 O D. $52,300 and $44,600 tionale:
Starlight, a Broadway media firm, uses the balance sheet approach to estimate uncollectible accounts expense. At year-end an aging of the accounts receivable produced the following classification: Not yet due.... $500,000 1-30 days past due... 110,000 31-60 days past due.. 50,000 61-90 days past due.. 30,000 Over 90 days past due.. 60,000 Total.. $750,000 On the basis of past experience, the company estimated the percentages probably uncollectible for the above five age groups to be as follows: Group 1, 1%; Group 2, 3%; Group 3, 10%; Group 4, 20%; and Group 5, 50%. The Allowance for Doubtful Accounts before adjustments at December 31 showed a credit balance of $4,700. What is the estimated amount of uncollectible accounts based on the above classification by age groups and the amount of the adjustment needed to bring the Allowance for Doubtful Accounts to the proper amount? A. $49,300 and $44,600 B. $44,600 and $4,700 C. $52,300 and $44,600 D. $49,300 and $54,000
Glencoe Supply had the following accounts receivable aging schedule at the end of a recent year. The balance in Glencoe’s allowance for doubtful accounts at the beginning of the year was$58,620 (credit). During the year, accounts in the total amount of $62,400 were written off.Required:1. Determine bad debt expense.2. Prepare the journal entry to record bad debt expense.3. If Glencoe had written off $90,000 of receivables as uncollectible during the year, how muchwould bad debt expense reported on the income statement have changed?
Compare two methods of accounting for uncollectible receivables Call Systems Company, a telephone service and supply company, has just completed its fourth year of operations. The direct write-off method of recording bad debt expense has been used during the entire period. Because of substantial increases in sales volume and the amount of uncollectible accounts, the company is considering changing to the allowance method. Information is requested as to the effect that an annual provision of 1% of sales would have had on the amount of bad debt expense reported for each of the past four years. It is also considered desirable to know what the balance of Allowance for Doubtful Accounts would have been at the end of each year. The following data have been obtained from the accounts: Year of Origin of Accounts Receivable Written Off as Uncollectible Uncollectible Year Sales Accounts Written Off 1 2 3 4 1 $ 900,000 $ 4,500 $4,500 2 1,250,000 9,600 3,000 $6,600 3 1,500,000 12,800 1,000 3,700…
The company uses two aging categories to estimate uncollectible accounts. Accounts less than 60 days are considered current and have a 3% uncollectible rate. Accounts more than 60 days are considered old and have a 29% uncollectible rate. If the company has $34,600 of current accounts and $4,600 of old accounts, and if the company's Allowance for Doubtful Accounts currently has an unadjusted debit balance of $1,029, in recording the adjustment to record bad debt expense, how much should be credited to the account? $_
At year end, the company’s aged list of Accounts receivable showed the following breakdown. The adjusted balance for the allowance of doubtful accounts, at year end is a $5,600 debit. Days outstanding Outstanding Balances Estimated % Uncollectible 0 – 30 days $234,000 5% 31 – 90 days 54,300 10% Over 90 days 21,300 20% Instructions: Calculate the bad debt expense for the year. Enter your answer into the following box (nearest dollar amount without dollar sign or comma, e.g. 15000). Answer:
Domino Company uses the aging of accounts receivable method to estimate uncollectible accounts expense. Domino began Year 2 with balances in Accounts Receivable and Allowance for Doubtful Accounts of $46,310 and $3,650, respectively. During the year, the company wrote off $2,740 in uncollectible accounts. In preparation for the company's Year 2 estimate, Domino prepared the following aging schedule: Number of days past due Receivables amount % Likely to be uncollectible Current $77,000 1% 0-30 28,400 5% 31-60 7,460 10% 61-90 3,920 25% Over 90 3,600 50% Total $120,380 What will Domino record as Uncollectible Accounts Expense for Year 2?
Blue Skies Equipment Company uses the aging approach to estimate bad debt expense at the end of each accounting year. Credit sales occur frequently on terms n/60. The balance of each account receivable is aged on the basis of three time periods as follows: (1) not yet due, (2) up to one year past due, and (3) more than one year past due. Experience has shown that for each age group, the average loss rate on the amount of the receivable at year-end due to uncollectibility is (a) 4 percent, (b) 10 percent, and (c) 29 percent, respectively. At December 31, 2022 (end of the current accounting year), the Accounts Receivable balance was $49,800 and the Allowance for Doubtful Accounts balance was $990 (credit). In determining which accounts have been paid, the company applies collections to the oldest sales first. To simplify, only five customer accounts are used; the details of each on December 31, 2022, follow: B. Brown-Account Receivable Date Explanation Debit Credit Balance 03/11/2021…
Please help me. Thankyou.
The credit manager of Sweet Sales Inc. has gathered the following information about the company's accounts receivable and credit losses during the current year: Net credit sales for the year Accounts receivable at year-end Uncollectible accounts receivable: Actually written off during the year Estimated portion of year-end receivables expected to prove uncollectible (per aging schedule) $91,000 84,000 $7,500,000 1,750,000 175,000 a. Uncollectible accounts expense is estimated at an amount equal to 2.5 percent of net credit sales. b. Uncollectible accounts expense is recognized by adjusting the balance in the Allowance for Doubtful Accounts to the amount indicated in the year-end aging schedule. The balance in the allowance account at the beginning of the current year was $25,000. (Consider the effect of the write-offs during the year on the balance in the Allowance for Doubtful Accounts.) c. The company uses the direct write-off method of accounting for urlcollectible accounts. Prepare…

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