I am struggling to find the allowance for doubtful accounts to prepare for the balance sheet. The question is given as, "Show how Accounts Receivable(including the credit balances) and the Allowance for Doubtful Accounts would appear on the December 31 balance sheet. I am given the following information: Shuler company has a balance of $364900 in its Accounts Receivable account and a credit balance of $4200 in the Allowance for Doubtful Accounts account. The accounts receivable account T-account consisted of $370000 in debt balances and $5100 in credit balances. Current $303000 0-60 days past due 42000 61-180 days past due 17000 over 180 days past due 8000 $370000 In the past, the company has experienced credit losses as follows: 1% current balance, 5% balances of 0-60 days past due, 15% of balances 61-180 past due, and 40% of balances over six months past due. Here is the chart I am to fill in: Current Assets: Accounts Receivable $ Less: Allowance foro Doubtful Accounts $ Current Liabilities: Customers' Overpayments $5100
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At the end of the accounting period, a financial statement is prepared by every company, then at that time while preparing the financial statement, the company determines among its total receivable amount how much portion of receivables is collected by the company during that accounting period.
Accounts Receivable
The word “account receivable” means the payment is yet to be made for the work that is already done. Generally, each and every business sells its goods and services either in cash or in credit. So, when the goods are sold on credit account receivable arise which means the company is going to get the payment from its customer to whom the goods are sold on credit. Usually, the credit period may be for a very short period of time and in some rare cases it takes a year.
I am struggling to find the allowance for doubtful accounts to prepare for the
I am given the following information:
Shuler company has a balance of $364900 in its Accounts Receivable account and a credit balance of $4200 in the Allowance for Doubtful Accounts account. The accounts receivable account T-account consisted of $370000 in debt balances and $5100 in credit balances.
| Current | $303000 |
| 0-60 days past due | 42000 |
| 61-180 days past due | 17000 |
| over 180 days past due | 8000 |
| $370000 |
In the past, the company has experienced credit losses as follows: 1% current balance, 5% balances of 0-60 days past due, 15% of balances 61-180 past due, and 40% of balances over six months past due.
Here is the chart I am to fill in:
| Current Assets: | |
| Accounts Receivable | $ |
| Less: Allowance foro Doubtful Accounts | $ |
| Current Liabilities: | |
| Customers' Overpayments | $5100 |
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