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 % % % $
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
Transcribed Image Text: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
%
%
%
$
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