EXERCISE 8-2 At May 31, the accounts receivable of Biway Central amounted in total to $705,600. The company uses the balance sheet approach to estimate bad debts and has prepared an aging schedule of accounts receivable at May 31 which indicates an expected loss of $17,568. You are to'prepare as of May 31 the adjusting entry required under each of the following independent assumptions. The explanation portion of each entry should include, appropriate supporting .computations, and amounts should be rounded to the nearest dollar. Accounting for Uncollectible Accounts-The "Balance Sheet" Method The Allowance for Doubtful Accounts has a credit balance of $12,672. The Allowance for Doubtful Accounts has a debit balance of $4,262.

EXERCISE 8-2 At May 31, the accounts receivable of Biway Central amounted in total to $705,600. The company uses the balance sheet approach to estimate bad debts and has prepared an aging schedule of accounts receivable at May 31 which indicates an expected loss of $17,568. You are to'prepare as of May 31 the adjusting entry required under each of the following independent assumptions. The explanation portion of each entry should include, appropriate supporting .computations, and amounts should be rounded to the nearest dollar. Accounting for Uncollectible Accounts-The "Balance Sheet" Method The Allowance for Doubtful Accounts has a credit balance of $12,672. The Allowance for Doubtful Accounts has a debit balance of $4,262.

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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Current Attempt in Progress Wildhorse Company has accounts receivable of $101,200 at March 31, 2022 Credit terms are 2/10, n/30. At March 31, 2022, there is a $1,300 credit balance in Allowance for Doubtful Accounts prior to adjustment. The company uses the percentage-of-receivables basis for estimating uncollectible accounts. The company's estimates of bad debts are as shown below. Age of Accounts Current 1-30 days past due 31-90 days past due Over 90 days past due Transcribed Text (a) 2022 Balance, March 31 $61,600 22,100 8,600 8,900 2021 $75,000 Total estimated uncollectibles 8,000 2,400 1,100 $101.200 $86,500 Estimated Percentage Uncollectible 3% 5% 23% 50% c Determine the total estimated uncollectibles at March 31, 2022.
Brief Exercise 8-10 (Part Level Submission) During its first year of operations, Sandhill Co. had credit sales of $3,208,100, of which $434,300 remained uncollected at year-end. The credit manager estimates that $19,120 of these receivables will become uncollectible. (a) Prepare the journal entry to record the estimated uncollectibles. (Assume an unadjusted balance of zero in Allowance for Doubtful Accounts.) (Credit account titles are automatically indented when amount is entered. Do not indent manually.)
! Required information [The following information applies to the questions displayed below.] On December 31, Jarden Company's Allowance for Doubtful Accounts has an unadjusted credit balance of $16,000. Jarden prepares a schedule of its December 31 accounts receivable by age. Accounts Receivable $ 820,000 Age of Accounts Receivable Not yet due Expected Percent Uncollectible 1.30% 328,000 1 to 30 days past due 2.05 65,600 31 to 60 days past due 6.55 32,800 13,120 61 to 90 days past due Over 90 days past due 33.00 69.00 2. Prepare the adjusting entry to record bad debts expense at December 31. Note: Round percentage answers to nearest whole percent. Do not round intermediate calculations.
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! Required information [The following information applies to the questions displayed below.] On December 31, Jarden Company's Allowance for Doubtful Accounts has an unadjusted credit balance of $16,000. Jarden prepares a schedule of its December 31 accounts receivable by age. Accounts Receivable $ 840,000 336,000 67,200 33,600 13,440 View transaction list
Required information Skip to question [The following information applies to the questions displayed below.] On December 31, Jarden Company's Allowance for Doubtful Accounts has an unadjusted credit balance of $14,500. Jarden prepares a schedule of its December 31 accounts receivable by age. Accounts Receivable Age of Accounts Receivable Expected Percent Uncollectible $ 820,000 Not yet due 1.25% 328,000 1 to 30 days past due 2.00 65,600 31 to 60 days past due 6.50 32,800 61 to 90 days past due 32.75 13,120 Over 90 days past due 68.00 Required:1. Compute the required balance of the Allowance for Doubtful Accounts at December 31 using an aging of accounts receivable.
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