Credit Losses Based on Accounts Receivable At December 31, Schuler Company had a balance of $369,000 in its Accounts Receivable account and a credit balance of $4,200 in the Allowance for Doubtful Accounts account. The accounts receivable T-account consisted of $374,000 in debit balances and $5,000 in credit balances. The company aged its accounts as follows: Current 0-60 days past due 61-180 days past due Over 180 days past due in the past, the company has experienced credit losses as follows: one percent of current balances, five percent of balances 0-60 days past due, 18 percent of balances 61-180 days past due, and 40 percent of balances over six months past due. The company bases its allowance for doubtful accounts on an aging analysis of accounts receivable. a. Required a. Prepare the adjusting entry to record the allowance for doubtful accounts for the year. . Show how Accounts Receivable (including the credit balances) and the Allowance for Doubtful Accounts would appear on the December 31 balance sheet. Date Dec.31 $304,000 44,000 D. 18,000 8,000 $374,000 Current Assets: General Journal Description To record allowance for credit losses. ♦ + Current Liabilities: Customers' Overpayments + $ + $ $ Debit Credit

Credit Losses Based on Accounts Receivable At December 31, Schuler Company had a balance of $369,000 in its Accounts Receivable account and a credit balance of $4,200 in the Allowance for Doubtful Accounts account. The accounts receivable T-account consisted of $374,000 in debit balances and $5,000 in credit balances. The company aged its accounts as follows: Current 0-60 days past due 61-180 days past due Over 180 days past due in the past, the company has experienced credit losses as follows: one percent of current balances, five percent of balances 0-60 days past due, 18 percent of balances 61-180 days past due, and 40 percent of balances over six months past due. The company bases its allowance for doubtful accounts on an aging analysis of accounts receivable. a. Required a. Prepare the adjusting entry to record the allowance for doubtful accounts for the year. . Show how Accounts Receivable (including the credit balances) and the Allowance for Doubtful Accounts would appear on the December 31 balance sheet. Date Dec.31 $304,000 44,000 D. 18,000 8,000 $374,000 Current Assets: General Journal Description To record allowance for credit losses. ♦ + Current Liabilities: Customers' Overpayments + $ + $ $ Debit Credit

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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I can not figure out the last part of this question.
What amount of doubtful account expense should Zee Company report for the current year? What total amount of expenses should X Company recognize in the fourth quarter? What total amount of loss on factoring should Y Company recognize in the current year?