Daley Company prepared the following aging of receivables analysis at December 31. Total Days Past Due 0 1 to 30 31 to 60 61 to 90 Over 90 Accounts receivable $ 575,000 $ 397,000 $ 91,000 $ 37,000 $ 19,000 $ 31,000 Percent uncollectible 2% 3% 6% 8% 11% Complete the table below to calculate the estimated balance of Allowance for Doubtful Accounts using aging of accounts receivable. Prepare the adjusting entry to record bad debts expense using the estimate from part a. Assume the unadjusted balance in the Allowance for Doubtful Accounts is a $3,700 credit. Prepare the adjusting entry to record bad debts expense using the estimate from part a. Assume the unadjusted balance in the Allowance for Doubtful Accounts is a $200 debit. Complete the table below to calculate the estimated balance of Allowance for Doubtful Accounts using aging of accounts receivable. Accounts Receivable x Percent Uncollectible (%) = Estimated Uncollectible Not due: x = 1 to 30: x = 31 to 60: x = 61 to 90: x = Over 90: x = Estimated balance of allowance for uncollectibles Record estimated bad debts assuming that Allowance for Doubtful Accounts has a $3,700 credit balance. 2 Record estimated bad debts assuming that Allowance for Doubtful Accounts has a $200 debit balance.
Daley Company prepared the following aging of receivables analysis at December 31. Total Days Past Due 0 1 to 30 31 to 60 61 to 90 Over 90 Accounts receivable $ 575,000 $ 397,000 $ 91,000 $ 37,000 $ 19,000 $ 31,000 Percent uncollectible 2% 3% 6% 8% 11% Complete the table below to calculate the estimated balance of Allowance for Doubtful Accounts using aging of accounts receivable. Prepare the adjusting entry to record bad debts expense using the estimate from part a. Assume the unadjusted balance in the Allowance for Doubtful Accounts is a $3,700 credit. Prepare the adjusting entry to record bad debts expense using the estimate from part a. Assume the unadjusted balance in the Allowance for Doubtful Accounts is a $200 debit. Complete the table below to calculate the estimated balance of Allowance for Doubtful Accounts using aging of accounts receivable. Accounts Receivable x Percent Uncollectible (%) = Estimated Uncollectible Not due: x = 1 to 30: x = 31 to 60: x = 61 to 90: x = Over 90: x = Estimated balance of allowance for uncollectibles Record estimated bad debts assuming that Allowance for Doubtful Accounts has a $3,700 credit balance. 2 Record estimated bad debts assuming that Allowance for Doubtful Accounts has a $200 debit balance.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Concept explainers
Bad Debts
At the end of the accounting period, a financial statement is prepared by every company, then at that time while preparing the financial statement, the company determines among its total receivable amount how much portion of receivables is collected by the company during that accounting period.
Accounts Receivable
The word “account receivable” means the payment is yet to be made for the work that is already done. Generally, each and every business sells its goods and services either in cash or in credit. So, when the goods are sold on credit account receivable arise which means the company is going to get the payment from its customer to whom the goods are sold on credit. Usually, the credit period may be for a very short period of time and in some rare cases it takes a year.
Question
Daley Company prepared the following aging of receivables analysis at December 31.
| Total | Days Past Due | |||||
|---|---|---|---|---|---|---|
| 0 | 1 to 30 | 31 to 60 | 61 to 90 | Over 90 | ||
| $ 575,000 | $ 397,000 | $ 91,000 | $ 37,000 | $ 19,000 | $ 31,000 | |
| Percent uncollectible | 2% | 3% | 6% | 8% | 11% |
- Complete the table below to calculate the estimated balance of Allowance for Doubtful Accounts using aging of accounts receivable.
- Prepare the
adjusting entry to recordbad debts expense using the estimate from part a. Assume the unadjusted balance in the Allowance for Doubtful Accounts is a $3,700 credit. - Prepare the adjusting entry to record bad debts expense using the estimate from part a. Assume the unadjusted balance in the Allowance for Doubtful Accounts is a $200 debit.
Complete the table below to calculate the estimated balance of Allowance for Doubtful Accounts using aging of accounts receivable.
|
|
|
-
Record estimated bad debts assuming that Allowance for Doubtful Accounts has a $3,700 credit balance.
-
2Record estimated bad debts assuming that Allowance for Doubtful Accounts has a $200 debit balance.
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