Please show solutions in getting the answer. Thank you! Scion Company began operations on January 1, 2018. Onapplying certain percentages to the aging of accounts receivable,uncollectible accounts expense based on 1% of annual creditOn January 1, 2019, the entity changed the method ofdetermining the allowance for uncollectible accounts byDecember 31, 2018 and 2019, the entity provided forProblem 5-9 (AICPA Adapted)Scion Company began operations on January 1, 2018 osales.On January 1, 2019, the entity changed the methodapplying certain percentages to the aging of accounts receivablPercent uncollectibleDays past invoice date0 - 3031590180209180Over 180In addition, the entity wrote off all accounts receivable thatwere over 1 year old.The following additional information related to the years endedDecember 31, 2019 and 2018:201920183,000,0002,915,00027,0007,0002,800,0002,400,000Credit salesCollections, including recoveryAccounts written offRecovery of accounts previously written offnonenoneDays past invoice date0 - 3031 - 9091 - 180Over 180300,00080,00060,00025,000250,00090,00045,00015,000Required:1. Determine the allowance for doubtful accounts on January1, 2019.2. Determine the allowance for doubtful accounts on December31, 2019 before adjustment.3. Determine the required allowance on December 31, 2019.4. Prepare the adjustment to record the doubtful accountsexpense for the current year.

Allowance for doubtful accounts refers to the reduction in the amount of an asset, in this case the…

December 31, 2018 and 2019, the entity provided uncollectible accounts expense based on 1% of annual credit sales. Scion Company began ope On January 1, 2019, the entity changed the method determining the allowance for uncollectible accounts by applying certain percentages to the aging of accounts receivable, of 11estikl

December 31, 2018 and 2019, the entity provided uncollectible accounts expense based on 1% of annual credit sales. Scion Company began ope On January 1, 2019, the entity changed the method determining the allowance for uncollectible accounts by applying certain percentages to the aging of accounts receivable, of 11estikl

Century 21 Accounting Multicolumn Journal

11th Edition

ISBN:9781337679503

Author:Gilbertson

Publisher:Gilbertson

Chapter14: Accounting For Uncollectible Accounts Receivable

Section14.1: Uncollectible Accounts Receivable

Problem 1OYO

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