Instructions(X)Chart of Accounts(X)General Journal3a. Prepare the journal entry on June 30 to record Cowen's estimated uncollectibles, assuming the balance in Allowance for Doubtful AccountsCowen's, a large department store located in a metropolitan area, has beenprior to adjustment is $0.CHART OF ACCOUNTSexperiencing difficulty in estimating its bad debts. The company has decided toprepare an aging schedule for its outstanding accounts receivable and estimate badCowen'sGeneral Journal Instructionsdebts by the due dates of its receivables. This analysis discloses the followingGeneral Ledgerinformation:ASSETSREVENUEPAGE 1Balance Age of Receivable Estimated Percentage Uncollectible111 Cash411 Sales RevenueGENERAL JOURNAL$194,000 Under 30 days0.8%121 AccountsDATEACCOUNT TITLEPOST. REF.DEBITCREDITReceivableEXPENSES119,000 30-60 days2.0%1122 Allowance for500 Cost of Goods73,00061-120 days5.0%2Doubtful AccountsSold41,000121-240 days20.0%141 Inventory511 Insurance25,000241-360 days35.0%152 PrepaidExpense3b. Prepare the journal entry on June 30 to record Cowen's estimated uncollectibles, assuming the balance in Allowance for Doubtful AccountsInsurance512 Utilities Expense19,000Over 360 days60.0%prior to adjustment is a $3,100 debit.181 Equipment521 Salaries$471,000198 AccumulatedExpenseDepreciation532 Bad DebtGeneral Journal InstructionsRequired:Expense1. Use the preceding analysis to compute the estimated amount ofLIABILITIES540 Interest ExpensePAGE 1uncollectible receivables.211 Accounts Payable541 Depreciation2. What is the net realizable value of Cowen's accounts receivable?GENERAL JOURNAL231 Salaries PayableExpense3. Prepare the journal entry to record Cowen's estimated uncollectibles,250 Unearned559 MiscellaneousDATEACCOUNT TITLEPOST. REF.DEBITCREDITassuming the balance in Allowance for Doubtful Accounts prior toRevenueExpensesadjustment is:910 Income Tax261 Income Taxes2A. OPayableExpenseВ. $3,100 (debit)C. $2,500 (credit)Analysis3c. Prepare the journal entry on June 30 to record Cowen's estimated uncollectibles, assuming the balance in Allowance for Doubtful Accountsprior to adjustment is a $2,500 credit.1. Use the Aging analysis to compute the estimated amount of uncollectible receivables.General Journal InstructionsThe estimated amount uncollectible based on the data provided is $PAGE 12. What is the net realizable value of Cowen's accounts receivable?GENERAL JOURNALNet realizable value of accounts receivable $DATEACCOUNT TITLEPOST. REF.DEBITCREDIT

The allowance for doubtful accounts is created to record estimated bad debt expense.

Answered: Instructions X. Cowen's, a large…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

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Twilight Company uses the aging of accounts recelvable method to estimate Bad Debt Expense. The balance of each account receivable is aged on the basis of three categories as follows: (1) 1-30 days old, (2) 31-90 days old, and (3) more than 90 days old. Based on experience, management has estimated what portion of recelvables of a specific age will not be paid as follows: (1) 2%, (2) 13%, and (3) 34%, respectively. At December 31, 2019, the unadjusted credit balance in the Allowance for Doubtful Accounts was $150. The total Accounts Receivable in each age category were: (1) 1-30 days old, $58,000, (2) 31-90 days old, $19,000, and (3) more than 90 days old, $3,000. Required: a. Calculate the estimate of uncollectible accounts at December 31, 2019. b. Prepare the appropriate adjusting entry dated December 31, 2019.
Estimating Bad Debts Expense and Reporting Receivables At December 31, Barber Company had a balance of $630,000 in its accounts receivable and an unused balance of $3,900 in its allowance for uncollectible accounts. The company then aged its accounts as follows. Current $519,000 1-60 days past due 72,000 61-180 days past due 25,500 Over 180 days past due 13,500 Total accounts receivable $630,000 The company has experienced losses as follows: 1% of current balances, 5% of balances 1-60 days past due, 15% of balances 61-180 days past due, and 40% of balances over 180 days past due. The company continues to base its allowance for uncollectible accounts on this aging analysis and percentages. a. What amount of bad debts expense does Barber report on its income statement for the year? $ 14,115 b. Show how Barber's December 31 balance sheet will report the accounts receivable and the allowance for uncollectible accounts. Note: Round your answers to the nearest whole dollar. Note: Do not use…
Data for the year ended December 31 are presented below. Sales (100% on credit) $2,100,000 Sales returns 150,000 Accounts Receivable (December 31) 420,000 Allowance for Doubtful Accounts (Before adjustment at December 31) 25,000 Estimated amount of uncollected accounts based on an aging analysis 75,000 If the company uses the aging of accounts receivable method to estimate its bad debts, what will be the net realizable value of its accounts receivable after the adjustment for bad debt expense?
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Information related to Tesco Company for 2020 is summarized below. Total credit sales $1,200,000 Accounts receivable at December 31 370,000 Bad debts written off 25,150 a) What amount of bad debts expense will Tesco Company report if it uses the direct write-off method of accounting for bad debts?
(a) A company has determined that the length of time a receivable is outstanding is the most appropriate credit risk characteristic for determining expected credit losses. The following is an aging schedule for the company's accounts receivable as at December 31, 2023: Customer's name Aber Bohr Chow Datz Others Expected rate of credit loss Expected credit losses Total amount owed $28,000 50,000 42,000 eTextbook and Media 27,000 158,000 $305,000 $41,160 Current (not yet due) Account Titles and Explanation $50,000 15,000 95,000 $160,000 3% $4,800 1-30 12,000 $9,000 $19,000 15,000 $36,000 6% Number of days past due $2,160 31-60 13,000 10% $3,200 61-90 $15,000 15,000 Debit $32,000 $30,000 $47,000 25% Over 90 $7,500 $27,000 20,000 On December 31, 2023, the unadjusted balance in the Allowance for Expected Credit Losses (prior to the aging analysis) was a credit of $20,000. 50% Journalize the adjusting entry to record the expected credit losses on December 31, 2023. (Credit account titles are…
USE TGHE FOLLOWING TO SOLVE FOR QUESTION7 ONLY Tooele Company’s controller estimated bad debt expense using the percentage of accountsreceivable method. Total sales for the year were $500,000 of which 250,000 are on account.The ending balance in accounts receivable was $100,000. An examination of the outstandingaccounts at the end of the year indicates that approximately 12 percent of these accounts willultimately prove to be uncollectible. Before any adjusting entries, the balance in theAllowance for Doubtful Accounts is $700 (CREDIT). Which is part of the correct adjustingentry to record bad debt expense for the year?(The Allowance for Doubtful Accounts is also known as the Allowance for Bad Debts or theAllowance for Uncollectible Accounts.)a. CREDIT Allowance for Bad Debts for $11,300b. DEBIT Allowance for Bad Debts for $11,300c. CREDIT Allowance for Bad Debts for $12,000d. CREDIT Allowance for Bad Debts for $12,700e. DEBIT Allowance for Bad Debts for $14,700 5. Use the…
Florence Company had a debit balance of $1,500 in the Allowance for Doubtful Accounts account and a debit balance of $500,000 in the Accounts Receivable account with Credit Sales of $1,500,000 for the year. Management estimates 1.5% of credit sales will become uncollectible. What is the amount of estimated bad debts expense?
Walgreens provided the following information before any year end adjusments: Net credit sales are $120,000 Historical percentage of credit losses is 2% Allowance for doubtful accounts has a credit balance of $300. Accounts receivables ending balance is $47,000. What is the estimated bad debt expense using the percentage of credit sales method? A. $2,400 B. $2,100 C. $940 D. $2,700
During the current year, Giatras Electronics recorded credit sales of $710,000. Based on prior experience, it estimates a 3.0 percent bad debt rate on credit sales Required: 1. Prepare journal entries for each of the following transactions. a. On October 28 of the current year, an account receivable for $2,100 from a prior year was determined to be uncollectible and was written off. b. At year-end, the appropriate bad debt expense adjustment was recorded for the current year. 2. Complete the following table, indicating the amount and effect for each transaction.

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