From inception of operations to December 31, 2025, Kingbird Corporation provided for uncollectible accounts receivable under the allowance method. The provisions are recorded, based on analyses of customers with different risk characteristics. Bad debts written off were charged to the allowance account; recoveries of bad debts previously written off were credited to the allowance account, and no year-end adjustments to the allowance account were made. Kingbird's usual credit terms are net 30 days. The balance in Allowance for Doubtful Accounts was $126,100 (Cr.) at January 1, 2025. During 2025, credit sales totaled $9,015,500, the provision for doubtful accounts was determined to be $180,310, $90,155 of bad debts were written off, and recoveries of accounts previously written off amounted to $15,470. Kingbird installed a computer system in November 2025, and an aging of accounts receivable was prepared for the first time as of December 31, 2025. A summary of the aging is as follows. Classification by Month of Sale Balance in Each Category Estimated % Uncollectible November-December 2025 $1,250,500 2% July-October 689,900 9% January-June 439,900 27% Prior to 1/1/25 159,000 80% $2,539,300 Based on the review of collectibility of the account balances in the "prior to 1/1/25" aging category, additional receivables totaling $54,100 were written off as of December 31, 2025. The 80% uncollectible estimate applies to the remaining $104,900 in the category. Effective with the year ended December 31, 2025, Kingbird adopted a different method for estimating the allowance for doubtful accounts at the amount indicated by the year-end aging analysis of accounts receivable. (a) Prepare a schedule analyzing the changes in Allowance for Doubtful Accounts for the year ended December 31, 2025. Show supporting computations in good form. (Hint: In computing the 12/31/25 allowance, subtract the $54,100 write-off.) KINGBIRD CORPORATION Analysis of Changes in the Allowance for Doubtful Accounts ° ° ° ° Computation of Allowance for Doubtful Accounts Aging Category Balance Nov.-Dec. July-Oct. Jan-June Prior to 1/1/25 at December 31, 2025 % $ Doubtful Accounts % % % $

From inception of operations to December 31, 2025, Kingbird Corporation provided for uncollectible accounts receivable under the allowance method. The provisions are recorded, based on analyses of customers with different risk characteristics. Bad debts written off were charged to the allowance account; recoveries of bad debts previously written off were credited to the allowance account, and no year-end adjustments to the allowance account were made. Kingbird's usual credit terms are net 30 days. The balance in Allowance for Doubtful Accounts was $126,100 (Cr.) at January 1, 2025. During 2025, credit sales totaled $9,015,500, the provision for doubtful accounts was determined to be $180,310, $90,155 of bad debts were written off, and recoveries of accounts previously written off amounted to $15,470. Kingbird installed a computer system in November 2025, and an aging of accounts receivable was prepared for the first time as of December 31, 2025. A summary of the aging is as follows. Classification by Month of Sale Balance in Each Category Estimated % Uncollectible November-December 2025 $1,250,500 2% July-October 689,900 9% January-June 439,900 27% Prior to 1/1/25 159,000 80% $2,539,300 Based on the review of collectibility of the account balances in the "prior to 1/1/25" aging category, additional receivables totaling $54,100 were written off as of December 31, 2025. The 80% uncollectible estimate applies to the remaining $104,900 in the category. Effective with the year ended December 31, 2025, Kingbird adopted a different method for estimating the allowance for doubtful accounts at the amount indicated by the year-end aging analysis of accounts receivable. (a) Prepare a schedule analyzing the changes in Allowance for Doubtful Accounts for the year ended December 31, 2025. Show supporting computations in good form. (Hint: In computing the 12/31/25 allowance, subtract the $54,100 write-off.) KINGBIRD CORPORATION Analysis of Changes in the Allowance for Doubtful Accounts ° ° ° ° Computation of Allowance for Doubtful Accounts Aging Category Balance Nov.-Dec. July-Oct. Jan-June Prior to 1/1/25 at December 31, 2025 % $ Doubtful Accounts % % % $

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter9: Accounting For Receivables

Section: Chapter Questions

Problem 4PB: Bristax Corporation recorded $1,385,660 in credit sales for the year, and $732,410 in accounts...

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