Jade began operations on January 1, 2020. From 2020 to 2022, Jade provided for doubtful accounts based on 5% annual credit sales. On January 1, 2023, Jade charged the method of determining the allowance for doubtful accounts using an aging schedule. In addition, Jade writes off all accounts receivable over 1-year-old. 2023 2022 2021 2020 Credit sales 15,000,000 9,500,000 8,000,000 6,000,000 Collections excluding recovery 11,700,000 8,200,000 6,700,000 4,500,000 Accounts written off during the year 200,000 120,000 80,000 None Recovery of accounts written off 100,000 40,000 35,000 None Amount Probability of collection 30 days or less 3,000,000 95% Between 31 and 60 days 1,500,000 80% Between 61 and 180 days 1,200,000 75% Between 181 and one year 1,200,000 50% Over one year - to be written off 100,000 0% 3) What is the allowance for doubtful accounts on December 31, 2023? A 1,350,000 B. 1,450,000 C. 1250,000 D. 1,000,000 4) What amount should be reported as doubtful account expense for 2023? A. 500,000 B. 600,000 C. 700,000 D. 400,000 5) What is the net realizable value of accounts receivable on December 31, 2023? A 6,900,000 B. 7,000,000 C. 5,550,000 D. 5,650,000

Jade began operations on January 1, 2020. From 2020 to 2022, Jade provided for doubtful accounts based on 5% annual credit sales. On January 1, 2023, Jade charged the method of determining the allowance for doubtful accounts using an aging schedule. In addition, Jade writes off all accounts receivable over 1-year-old. 2023 2022 2021 2020 Credit sales 15,000,000 9,500,000 8,000,000 6,000,000 Collections excluding recovery 11,700,000 8,200,000 6,700,000 4,500,000 Accounts written off during the year 200,000 120,000 80,000 None Recovery of accounts written off 100,000 40,000 35,000 None Amount Probability of collection 30 days or less 3,000,000 95% Between 31 and 60 days 1,500,000 80% Between 61 and 180 days 1,200,000 75% Between 181 and one year 1,200,000 50% Over one year - to be written off 100,000 0% 3) What is the allowance for doubtful accounts on December 31, 2023? A 1,350,000 B. 1,450,000 C. 1250,000 D. 1,000,000 4) What amount should be reported as doubtful account expense for 2023? A. 500,000 B. 600,000 C. 700,000 D. 400,000 5) What is the net realizable value of accounts receivable on December 31, 2023? A 6,900,000 B. 7,000,000 C. 5,550,000 D. 5,650,000

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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Wolfpack Inc.’s trial balance indicates the following select account balances at the end of 2022 before the year-end adjustment to record bad debts: Account Debit Credit Account Receivable 700000 Allowance of Doubtful Accounts 8000 Sales Revenue 9000000 A) At the end of 2022, Wolfpack’s management estimates that 3% of its ending gross Accounts Receivable account balance will be uncollectible. How do you prepare the 12/31/22 journal entry to record bad debts expense for 2022? What is the Net Realizable Value? B) Assume that on February 4 of the following year, Wolfpack specifically writes off the receivable balance for one of its customers. The customer owes Wolfpack $4,000. Prepare the specific write-off journal entry to record this uncollectible account.
21. During 2019, Company A had net credit sales of Php 600,000. Its Accounts Receivable and Allowance for Doubtful Accounts as of December 31, 2019 before adjustment are Php 100,000 and Php 2,000, respectively. The age of the receivables are as follow: Php 40,000: 0-60 days old; Php 60,000: over 60 days old. If the company uses Aging of Receivables, what should be the amount of Doubtful Accounts Expense to recognize if an allowance of 2% is granted to 0-60 days old receivables and 10% to over 60 days old receivables?
accounts receivable
The following information is available for AVS-CVN Company: Credit sales during 2019 P 8,000,000 Accounts receivable deemed worthless and written off during 2019 180,000 Allowance for doubtful accounts at December 31, 2018 160,000 As a result of a review and aging of accounts receivable in early January 2020, however, it has been determined that an allowance for doubtful accounts of P110,000 is needed at December 31, 2019. What amount should AVS-CVN record as doubtful accounts expense for the year ended December 31, 2019? P130,000 c. P90,000 P110,000 d. P270,000
Dhapa
Suzuki Supply reports the following amounts at the end of 2024 (before adjustment). Credit Sales for 2024 Accounts Receivable, December 31, 2024 Allowance for Uncollectible Accounts, December 31, 2024 $248,000 43,000 1,000 (debit) Required: 1. Record the adjusting entry for uncollectible accounts using the percentage-of-receivables method. Suzuki estimates 10% of receivables will not be collected. 2. Record the adjusting entry for uncollectible accounts using the percentage-of-credit-sales method. Suzuki estimates 2% of credit sales will not be collected. 3. Calculate the effect on net income (before taxes) and total assets in 2024 for each method.
Analysis of Loss Allowance Boulder View Corporation accounts for uncollectible accounts receivable using the allowance method. As of December 31, 2021, the credit balance in Loss Allowance was $130,000. During 2022, credit sales totaled $10,000,000, $90,000 of accounts receivable were written off as uncollectible, and recoveries of accounts previously written off amounted to $15,000. An aging of accounts receivable at December 31, 2022, showed the following Classification of Receivable Current 1-30 days past due 31-60 days past due. Over 60 days past due Accounts Receivable Balance Percentage Estimated As of December 31, 2022 $1,140,000 600,000 400,000 120,000 $2,260,000 Uncollectible 2% 10 23 75 Required: 1. Prepare the journal entry to record expected credit loss for 2022, assuming that the aging of the receivable method is applied. 2. Record journal entries to account for the write-off of $90,000 uncollectible accounts receivable and the collection of $15,000 in receivables that had…
5. Guernsey Company began operations on January 1, 2021. On December 31, 2021, the entity provided doubtful accounts based on 1% of annual credit sales. On January 1, 2022, the entity changed the method of determining the allowance for doubtful accounts by aging of accounts receivable. Days past invoice date Percent uncollectible 0 - 30 31 90 91 - 180 Over 180 1 5 20 80 In addition, the entity wrote off all accounts receivable that were over 1 year old. The entity provided the following additional information: 0 - 30 31 - 90 91 - 180 Over 180 Credit sales Collections, including recovery Accounts written off Recovery of accounts previously written off Days past invoice date at December 31 2022 2021 3,000,000 2,800,000 2,915,000 2,400,000 27,000 7,000 300,000 80,000 60,000 25,000 None None 250,000 90,000 45,000 15,000 a. What is the allowance for doubtful accounts on December 31, 2021? b. What is the allowance for doubtful accounts on December 31, 2022? c. What amount should be reported…
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