Marigold Inc. uses the allowance method to estimate uncollectibles. The company produced the following aging of the accounts receivable at year-end. (a) Correct answer icon Your answer is correct. Calculate the total estimated uncollectibles based on the below information. Number of Days Outstanding Total 0–30 31–60 61–90 91–120 Over 120 Accounts receivable $212,900 $80,500 $47,100 $41,900 $25,500 $17,900 % uncollectible 1% 4% 5% 8% 20% Estimated Bad debts $enter a dollar amount $enter a dollar amount $enter a dollar amount $enter a dollar amount $enter a dollar amount $enter a dollar amount eTextbook and Media List of Accounts Attempts: 1 of 3 used (b) - (d) (b) Prepare the year-end adjusting journal entry to record the Bad Debt Expense using the aged uncollectible accounts receivable determined in (a). Assume the unadjusted balance in Allowance for Doubtful Accounts is a $8,200 debit. (c) Of the above accounts, $5,400 is determined to be specifically uncollectible. Prepare the journal entry to write off the uncollectible account. (d) The company collects $5,400 subsequently on a specific account that had previously been determined to be uncollectible in (c). Prepare the journal entries necessary to restore the account and record the cash collection. (Credit account titles are automatically indented when amount is entered. Do not indent manually.) No Account Titles and Explanation Debit Credit (b) enter an account title enter a debit amount enter a credit amount enter an account title enter a debit amount enter a credit amount (c) enter an account title enter a debit amount enter a credit amount enter an account title enter a debit amount enter a credit amount (d) enter an account title to reverse write-off enter a debit amount enter a credit amount enter an account title to reverse write-off enter a debit amount enter a credit amount (To reverse write-off.) enter an account title to record collection of write off enter a debit amount enter a credit amount enter an account title to record collection of write off enter a debit amount enter a credit amount (To record collection of write off.)

Marigold Inc. uses the allowance method to estimate uncollectibles. The company produced the following aging of the accounts receivable at year-end. (a) Correct answer icon Your answer is correct. Calculate the total estimated uncollectibles based on the below information. Number of Days Outstanding Total 0–30 31–60 61–90 91–120 Over 120 Accounts receivable $212,900 $80,500 $47,100 $41,900 $25,500 $17,900 % uncollectible 1% 4% 5% 8% 20% Estimated Bad debts $enter a dollar amount $enter a dollar amount $enter a dollar amount $enter a dollar amount $enter a dollar amount $enter a dollar amount eTextbook and Media List of Accounts Attempts: 1 of 3 used (b) - (d) (b) Prepare the year-end adjusting journal entry to record the Bad Debt Expense using the aged uncollectible accounts receivable determined in (a). Assume the unadjusted balance in Allowance for Doubtful Accounts is a $8,200 debit. (c) Of the above accounts, $5,400 is determined to be specifically uncollectible. Prepare the journal entry to write off the uncollectible account. (d) The company collects $5,400 subsequently on a specific account that had previously been determined to be uncollectible in (c). Prepare the journal entries necessary to restore the account and record the cash collection. (Credit account titles are automatically indented when amount is entered. Do not indent manually.) No Account Titles and Explanation Debit Credit (b) enter an account title enter a debit amount enter a credit amount enter an account title enter a debit amount enter a credit amount (c) enter an account title enter a debit amount enter a credit amount enter an account title enter a debit amount enter a credit amount (d) enter an account title to reverse write-off enter a debit amount enter a credit amount enter an account title to reverse write-off enter a debit amount enter a credit amount (To reverse write-off.) enter an account title to record collection of write off enter a debit amount enter a credit amount enter an account title to record collection of write off enter a debit amount enter a credit amount (To record collection of write off.)

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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(a)

Correct answer icon

Your answer is correct.

Calculate the total estimated uncollectibles based on the below information.

		Number of Days Outstanding
	Total	0–30	31–60	61–90	91–120	Over 120
Accounts receivable	$212,900	$80,500	$47,100	$41,900	$25,500	$17,900
% uncollectible		1%	4%	5%	8%	20%
Estimated Bad debts	$enter a dollar amount	$enter a dollar amount	$enter a dollar amount	$enter a dollar amount	$enter a dollar amount	$enter a dollar amount

eTextbook and Media

List of Accounts

Attempts: 1 of 3 used

(b) - (d)

(b)		Prepare the year-end adjusting journal entry to record the Bad Debt Expense using the aged uncollectible accounts receivable determined in (a). Assume the unadjusted balance in Allowance for Doubtful Accounts is a $8,200 debit.
(c)		Of the above accounts, $5,400 is determined to be specifically uncollectible. Prepare the journal entry to write off the uncollectible account.
(d)		The company collects $5,400 subsequently on a specific account that had previously been determined to be uncollectible in (c). Prepare the journal entries necessary to restore the account and record the cash collection.

(Credit account titles are automatically indented when amount is entered. Do not indent manually.)

No	Account Titles and Explanation	Debit	Credit
(b)	enter an account title	enter a debit amount	enter a credit amount
	enter an account title	enter a debit amount	enter a credit amount
(c)	enter an account title	enter a debit amount	enter a credit amount
	enter an account title	enter a debit amount	enter a credit amount
(d)	enter an account title to reverse write-off	enter a debit amount	enter a credit amount
	enter an account title to reverse write-off	enter a debit amount	enter a credit amount
	(To reverse write-off.)
	enter an account title to record collection of write off	enter a debit amount	enter a credit amount
	enter an account title to record collection of write off	enter a debit amount	enter a credit amount
	(To record collection of write off.)

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