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for Receivables P8.8A (LO 2) AP Information on Hohenberger Company for 2024 follows: Instructions Total net credit sales Accounts receivable at December 31 Uncollectible accounts written off Amount collected on accounts previously written off (after write-off but before year end) $1,000,000 400,000 17,500 2,500 3. Assume that Hohenberger Company decides to estimate its uncollectible accounts using the al- lowance method and en aging schedule. Uncollectible accounts are estimated to be $24,000. What smount of bad deb expense will Hohenberger Company record if Allowance for Doubtful Accounts had an opening balance of $20,000 on January 1, 2024? b. Assume the same facts as in part (a) except that the Allowance for Doubtful Accounts had a $12,000 balance on January 1, 2024. What amount of bad debt expense will Hohenberger record on December 31, 2024? c. How does the amount of accounts written off during the period affect the amount of bad debt expense recorded at the end of the period when using the percentage of receivables approach? d. How does the collection of an account that had previously been written off affect the carrying amount of accounts receivable? the collection of accounts receivable balances.

for Receivables P8.8A (LO 2) AP Information on Hohenberger Company for 2024 follows: Instructions Total net credit sales Accounts receivable at December 31 Uncollectible accounts written off Amount collected on accounts previously written off (after write-off but before year end) $1,000,000 400,000 17,500 2,500 3. Assume that Hohenberger Company decides to estimate its uncollectible accounts using the al- lowance method and en aging schedule. Uncollectible accounts are estimated to be $24,000. What smount of bad deb expense will Hohenberger Company record if Allowance for Doubtful Accounts had an opening balance of $20,000 on January 1, 2024? b. Assume the same facts as in part (a) except that the Allowance for Doubtful Accounts had a $12,000 balance on January 1, 2024. What amount of bad debt expense will Hohenberger record on December 31, 2024? c. How does the amount of accounts written off during the period affect the amount of bad debt expense recorded at the end of the period when using the percentage of receivables approach? d. How does the collection of an account that had previously been written off affect the carrying amount of accounts receivable? the collection of accounts receivable balances.

FINANCIAL ACCOUNTING
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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for Receivables P8.8A (LO 2) AP Information on Hohenberger Company for 2024 follows: Instructions Total net credit sales Accounts receivable at December 31 Uncollectible accounts written off Amount collected on accounts previously written off (after write-off but before year end) $1,000,000 400,000 17,500 2,500 3. Assume that Hohenberger Company decides to estimate its uncollectible accounts using the al- lowance method and en aging schedule. Uncollectible accounts are estimated to be $24,000. What smount of bad deb expense will Hohenberger Company record if Allowance for Doubtful Accounts had an opening balance of $20,000 on January 1, 2024? b. Assume the same facts as in part (a) except that the Allowance for Doubtful Accounts had a $12,000 balance on January 1, 2024. What amount of bad debt expense will Hohenberger record on December 31, 2024? c. How does the amount of accounts written off during the period affect the amount of bad debt expense recorded at the end of the period when using the percentage of receivables approach? d. How does the collection of an account that had previously been written off affect the carrying amount of accounts receivable? the collection of accounts receivable balances.
Transcribed Image Text:for Receivables P8.8A (LO 2) AP Information on Hohenberger Company for 2024 follows: Instructions Total net credit sales Accounts receivable at December 31 Uncollectible accounts written off Amount collected on accounts previously written off (after write-off but before year end) $1,000,000 400,000 17,500 2,500 3. Assume that Hohenberger Company decides to estimate its uncollectible accounts using the al- lowance method and en aging schedule. Uncollectible accounts are estimated to be $24,000. What smount of bad deb expense will Hohenberger Company record if Allowance for Doubtful Accounts had an opening balance of $20,000 on January 1, 2024? b. Assume the same facts as in part (a) except that the Allowance for Doubtful Accounts had a $12,000 balance on January 1, 2024. What amount of bad debt expense will Hohenberger record on December 31, 2024? c. How does the amount of accounts written off during the period affect the amount of bad debt expense recorded at the end of the period when using the percentage of receivables approach? d. How does the collection of an account that had previously been written off affect the carrying amount of accounts receivable? the collection of accounts receivable balances.
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