CVM Company had a total accounts receivable of 250,000 al December 31, 20x1. An aging analysis of the accounts receivable and an estimate of possible credit losses are as follows: Classification Balance % Credit loss 1-60 days 61-120 days 121-180 days Over 180 days 175,000 1% 2% 25,000 10% 25,000 50% a. What is the credit loss that should be recognized in 20x1? P16,750 P157,500 P25,000 P17,250

CVM Company had a total accounts receivable of 250,000 al December 31, 20x1. An aging analysis of the accounts receivable and an estimate of possible credit losses are as follows: Classification Balance % Credit loss 1-60 days 61-120 days 121-180 days Over 180 days 175,000 1% 2% 25,000 10% 25,000 50% a. What is the credit loss that should be recognized in 20x1? P16,750 P157,500 P25,000 P17,250

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

8
Bad Debt Expense: Percentage of Credit Sales Method Bradford Plumbing had the following data for a recent year: Credit sales $547,900 Allowance for doubtful accounts, 1/1 (a credit balance) 8,740 Accounts receivable, 1/1 42,340 Collections on account receivable 489,770 Accounts receivable written off 14,250 Bradford estimates that 2.7% of credit sales will eventually default. Required: 1. Compute bad debt expense for the year (rounding to the nearest whole number).$fill in the blank 1 2. Determine the ending balances in accounts receivable and allowance for doubtful accounts. Ending Balance Accounts receivable $fill in the blank 2 Allowance for doubtful accounts $fill in the blank 3
Please do not give solution in image format thanku
Providing for Doubtful Accounts At the end of the current year, the accounts receivable account has a debit balance of $1,184,000 and sales for the year total $13,420,000. a. The allowance account before adjustment has a credit balance of $16,000. Bad debt expense is estimated at 1/2 of 1% of sales. b. The allowance account before adjustment has a credit balance of $16,000. An aging of the accounts in the customer ledger indicates estimated doubtful accounts of $51,20o. c. The allowance account before adjustment has a debit balance of $9,300. Bad debt expense is estimated at 3/4 of 1% of sales. d. The allowance account before adjustment has a debit balance of $9,300. An aging of the accounts in the customer ledger indicates estimated doubtful accounts of $77,200. Determine the amount of the adjusting entry to provide for doubtful accounts under each of the assumptions (a through d) listed above. a. $ b. $ c. $ d. $
None
solve this please
Credit Losses Based on Percentage of Credit Sales Highland Company uses the allowance method of handling credit losses. It estimates losses at 29% of credit sales, which were $600,000 during the year. On December 31, the Accounts Receivable balance was $560,000, and the Allowance for Doubtful Accounts had a credit balance of $3,400 before adjustment. a. Determine the amount of the adjustment to record credit losses for the year. Note: Use negative signs with answers, when appropriate. Balance Sheet Income Statement Stockholders' Assets Liabilities Equity Revenues Expenses = Net Income 24 %24
Providing for Doubtful Accounts At the end of the current year, the accounts receivable account has a debit balance of $992,000 and sales for the year total $11,240,000. a. The allowance account before adjustment has a credit balance of $13,400, Bad debt expense is estimated at 1/4 of 1% of sales. b. The allowance account before adjustment has a credit balance of $13,400. An aging of the accounts in the customer ledger indicates estimated doubtful accounts of $42,900. c. The allowance account before adjustment has a debit balance of $8,300. Bad debt expense is estimated at 1/2 of 1% of sales. d. The allowance account before adjustment has a debit balance of $8,300. An aging of the account in the customer lodger indicates estimated doubtful accounts of $68,900. Determine the amount of the adjusting entry to provide for doubtful accounts under each of the assumptions (a through d) listed above. b. S C. d.
E5.17 Preparing an Aging Schedule. East Bay Inc. uses the aging method to estimate the company's bad debt expense. Mark Evans, the president of the company, collected information about the company's outstanding accounts receivable and their probability of collection: TA 4 Probability of Non-Collection Account Age Amount 0-30 days. 31-60 days. 61-90 days. 91-120 days. Over 120 days $600,000 300,000 150,000 0.75% .... 2.00 3.00 90,000 5.00 50,000 30.00 Calculate the allowance for uncollectible accounts for East Bay, Inc., the total balance in accounts receivable, and the net realizable value of the company's accounts receivable. Assume that East Bay, Inc. adopts a policy of writing off as worthless all unpaid accounts receivable over 120 days old. How will implementation of this policy impact the net realizable value of the company's accounts receivable? Why?
Highland Company uses the allowance method of handling credit losses. It estimates losses at 1% of credit sales, which were $1,200,000 during the year.On December 31, the Accounts Receivable balance was $280,000, and the Allowance for Doubtful Accounts had a credit balance of $1,700 before adjustment.a. Determine the amount of the adjustment to record credit losses for the year.Note: Use negative signs with answers, when appropriate. Balance Sheet Income Statement Stockholders' Assets = Liabilities + Equity Revenues - Expenses = Net Income b. Show how the Accounts Receivable account and the Allowance for Doubtful Accounts would appear on the December 31 balance sheet.Note: Do not use negative signs with any of your answers. Balance Sheet (excerpt) Current assets Cash $ XX,XXX Inventory XXX,XXX Other current assets X,XXX Total Current Assets…
On December 31, 20X1, Vale Company had an unadjusted credit balance of $1,000 in its Allowance for credit losses. Vale analyzes its historical experience related to receivables in specific age categories and estimates the expected credit loss for each category based on government forecasts of the economy. The resulting analysis is shown below. Age Amount Estimated Credit Loss 0–30 days $ 60,000 5 % 31–60 days 4,000 10 Over 60 days 2,000 70 Required: What amount should Vale report as Allowance for credit losses in its December 31, 20X1, balance sheet?
Wohoo Publishers uses the allowance method to estimate uncollectible accounts receivables. The company produced the following aging of the accounts receivable at year-end (Y in thousands). Accounts receivable % uncollectible Estimated bad debts Total 200,000 0-30 days 77,000 2% 31-60 days 46,000 5% 61-90 days 91-120 days 39,000 6% 23,000 10% Over 120 days 15,000 25%