(L.OBJ. 3, 5) Accounting for uncollectible accounts using the allowance method and reporting receivables on the balance sheet [15-30 min] At December 31, 2012, the Accounts receivable balance of Solar Energy Manufacturing is $170,000. The Allowance for doubtful accounts has a $10,100 credit balance. Solar Energy Manufacturing prepares the following aging schedule for its accounts receivable: 1-30 Accounts receivable Days $170,000 $70,000 Estimated percent uncollectible 0.6% Age of Accounts 31-60 Days $50,000 3.0 % 61-90 Over 90 Days Days $30,000 $20,000 9.0% 40.0 % way to ments 1. Journalize the year-end adjusting entry for doubtful accounts on the basis of the aging schedule. Show the T-account for the Allowance for uncollectible accounts at December 31, 2012. 7. Show how Solar Energy Manufacturing will report Accounts receivable on its balance sheet.
(L.OBJ. 3, 5) Accounting for uncollectible accounts using the allowance method and reporting receivables on the balance sheet [15-30 min] At December 31, 2012, the Accounts receivable balance of Solar Energy Manufacturing is $170,000. The Allowance for doubtful accounts has a $10,100 credit balance. Solar Energy Manufacturing prepares the following aging schedule for its accounts receivable: 1-30 Accounts receivable Days $170,000 $70,000 Estimated percent uncollectible 0.6% Age of Accounts 31-60 Days $50,000 3.0 % 61-90 Over 90 Days Days $30,000 $20,000 9.0% 40.0 % way to ments 1. Journalize the year-end adjusting entry for doubtful accounts on the basis of the aging schedule. Show the T-account for the Allowance for uncollectible accounts at December 31, 2012. 7. Show how Solar Energy Manufacturing will report Accounts receivable on its balance sheet.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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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.
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![EB-15 (L.OBJ. 3, 5) Accounting for uncollectible accounts using the allowance
method and reporting receivables on the balance sheet [15-30 min]
At December 31, 2012, the Accounts receivable balance of Solar Energy Manufacturing
is $170,000. The Allowance for doubtful accounts has a $10,100 credit balance.
Solar Energy Manufacturing prepares the following aging schedule for its accounts
receivable:
1-30
Days
Accounts receivable
$170,000
$70,000
Estimated percent uncollectible 0.6%
Age of Accounts
31-60
Days
$50,000
3.0 %
and propose a way to
61-90
Days
$30,000
9.0%
Over 90
Days
$20,000
40.0 %
Requirements
1. Journalize the year-end adjusting entry for doubtful accounts on the basis of the
aging schedule. Show the T-account for the Allowance for uncollectible accounts
at December 31, 2012.
2. Show how Solar Energy Manufacturing will report Accounts receivable on its
December 31, 2012, balance sheet.
e allowance method](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F4533113e-069b-4e7d-b23b-da7079f58484%2Fd8534dc1-b677-46c5-a3a2-3900ae08ff14%2F9dfl1pa_processed.jpeg&w=3840&q=75)
Transcribed Image Text:EB-15 (L.OBJ. 3, 5) Accounting for uncollectible accounts using the allowance
method and reporting receivables on the balance sheet [15-30 min]
At December 31, 2012, the Accounts receivable balance of Solar Energy Manufacturing
is $170,000. The Allowance for doubtful accounts has a $10,100 credit balance.
Solar Energy Manufacturing prepares the following aging schedule for its accounts
receivable:
1-30
Days
Accounts receivable
$170,000
$70,000
Estimated percent uncollectible 0.6%
Age of Accounts
31-60
Days
$50,000
3.0 %
and propose a way to
61-90
Days
$30,000
9.0%
Over 90
Days
$20,000
40.0 %
Requirements
1. Journalize the year-end adjusting entry for doubtful accounts on the basis of the
aging schedule. Show the T-account for the Allowance for uncollectible accounts
at December 31, 2012.
2. Show how Solar Energy Manufacturing will report Accounts receivable on its
December 31, 2012, balance sheet.
e allowance method
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