Is a $1,700 creait.Complete this question by entering your answers in the tabs below.Required 1Required 2Estimate the balance of the Allowance for Doubtful Accounts using the aging of accounts receivable method.AccountsreceivablePercentuncollectible (%)EstimatedUncollectibleNot due:1 to 30:31 to 60:61 to 90:es%3DOver 90Estimated balance of allowance for uncollectibles$4( Required 1Required 2 >< Prev4 of 8Next >mere to search99+80°F4041brt sedelete%244356.8.9.backspaceRIY.DenterV.BIM Net Zero Products, a wholesaler of sustainable raw materials, prepares the following aging of receivables analysis.Days Past DueTotal1 to 30$ 25,00031 to 6061 to 90Over 90Accounts receivablePercent uncollectible$ 139,500$ 87,000$ 10,500$ 7, 500$ 9,5001%2%4%6%10%1. Estimate the balance of the Allowance for Doubtful Accounts using the aging of accounts receivable method.2. Prepare the adjusting entry to record bad debts expense assuming the unadjusted balance in the Allowance for Doubtful Accountsis a $1,700 credit,Complete this question by entering your answers in the tabs below.Required 1Required 2Estimate the balance of the Allowance for Doubtful Accounts using the aging of accounts receivable method.AccountsreceivablePercentuncollectible (%)EstimatedUncollectibleNot due:1 to 30:%3D31 to 60:%3D61 to 90%3D< Prey4 of 8Next >ere to searcha99+80°Fの144prt scdeletehomeand568.9.backspacenumlockR.7T[OPI7\homeKH.NTiterBIMIpause7 shatctri

Bad debts are the amount of accounts receivables from which it is estimated that due amount will not…

Answered: Net Zero Products, a wholesaler of…

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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Estimating Doubtful Accounts Performance Bike Co. is a wholesaler of motorcycle supplies. An aging of the company's accounts receivable on December 31 and a historical analysis of the percentage of uncollectible accounts in eadch age category are as follows: Estimate what the proper balance of the allowance for doubtful accounts should be as of December 31. Performance Bike Co. Estimation of Uncollectible Accounts December 31 Age Interval Balance Estimated Uncollectible Accounts Percent Estimated Uncollectible Accounts Amount Not past due $608,000 3/4% 1-30 days past due 66,900 2 31-60 days past due 30,400 61-90 days past due 21,900 17 91-180 days past due 15,800 38 Over 180 days past due 11,600 65 Total $754,600 $4
View Policies Current Attempt in Progress Assume the following information for Teal Mountain Corp. Accounts receivable (beginning balance) Allowance for doubtful accounts (beginning balance) Net credit sales Collections Write-offs of accounts receivable Collections of accounts previously written off (a) Account Titles and Explanation Uncollectible accounts are expected to be 6% of the ending balance in accounts receivable. (To record sales on account) (To record collection of accounts receivable) Prepare the entries to record sales and collections during the period. (List all debit entries before credit entries. Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts) eTextbook and Media $143.000 List of Accounts 11,340 Save for Later Using multiple attempts will impact your score. 10% scare reduction after attempt 5 930,000 912.000 6,400 2,200…
Net Zero Products, a wholesaler of sustainable raw materials. Prepared the following aging of receivables analysis. Days Past Due Total 0 1 to 30 31 to 60 61 to 90 Over 90 Accounts receivable $ 153,500 $ 91,000 $ 29,000 $ 12,500 $ 9,500 $ 11,500 Percent uncollectible 1 % 2 % 4 % 6 % 10 % 1. Estimate the balance of the Allowance for Doubtful Accounts using the aging of accounts receivable method.2. Prepare the adjusting entry to record bad debts expense assuming the unadjusted balance in the Allowance for Doubtful Accounts is a $2,100 credit.
Can you also send me how to do this one? 2. Refer to the data below for XYZ Corporation. Credit sales during 2018 850,000 Accounts Receivable—January 1, 2018 334,000 Collections from credit customers during 2018 725,000 Estimated uncollectible accounts based on an aging analysis 13,200 Customer accounts written off as uncollectible during 2018 12,000 Allowance for doubtful accounts 1,700(after write-off of uncollectible accounts) Answer the following questions using the above data: A. What is the balance of Accounts Receivable at December 31, 2018? B. If the aging approach is used to estimate bad debts, what should the balance in Allowance for Doubtful Accountsbe after the bad debts adjustment? C. If the aging approach is used to estimate bad debts, what amount should be recorded as bed debts expense for2018?
Aging of Receivables; Estimating Allowance for Doubtful Accounts Wig Creations Company supplies wigs and hair care products to beauty salons throughout Texas and the Southwest. The accounts receivable clerk for Wig Creations prepared the following partially completed aging of receivables schedule as of the end of business on December 31, 20Y7: Not Days Past Due Past Customer Balance Due 1-30 31-60 61-90 91-120 Over 120 АВС Веauty 19,000 19,000 Angel Wigs 7,100 7,100 Zodiac Beauty 3,500 3,500 Subtotals 1,316,900 752,700 299,000 128,300 39,800 16,400 80,700 The following accounts were unintentionally omitted from the aging schedule. Assume all due dates are for the current year except for Visions Hair & Nail, which is due in the next year. Customer Due Date Balance Arcade Beauty Aug. 17 $5,300 Creative Images Oct. 30 4,700 Excel Hair Products July 3 8,500 First Class Hair Care Sept. 8 6,700 Golden Images Nov. 23 3,300 Ob That Eair Nov 2O
Determine the amount to be added to Allowance for Doubtful Accounts in each of the following cases and indicate the ending balance in each case. a. Credit balance of $400 in Allowance for Doubtful Accounts just prior to adjustment. Using the aging method, the balance of Allowance for Doubtful Accounts is estimated as $8,710. Line Item Description Amount Amount added $fill in the blank 1 Ending balance $fill in the blank 2 b. Credit balance of $400 in Allowance for Doubtful Accounts just prior to adjustment. Bad debt expense is estimated at 2% of credit sales, which totaled $973,000 for the year. Line Item Description Amount Amount added $fill in the blank 3 Ending balance $fill in the blank 4
ment/chec Show Me How Print Item Estimating Doubtful Accounts Outlaw Bike Co. is a wholesaler of motorcycle supplies. An aging of the company's accounts receivable on December 31, and a historical añalysis of the percentage of uncollectible accounts in each age category are as follows: Percent Age Class Balance Uncollectible Not past due $782,000 1/2 % 1-30 days past due 86,000 4 31-60 days past due 39,100 7 61-90 days past due 28,200 18 91-180 days past due 20,300 41 Over 180 days past due 14,900 80 $970,500 Estimate what the proper balance of the allowance for doubtful accounts should be as of December 31. Percent Estimated Uncollectible Age Class Balance Uncollectible Accounts Amount Not past due $782,000 1/2% 1-30 days past due 86,000 4 31-60 days past due 39,100 7
Estimating doubtful accountsPerformance Bike Co. is a wholesaler of motorcycle supplies. An aging ofthe company's accounts receivable on December 31 and a historicalanalysis of the percentage of uncollectible accounts in each age category are as follows: Age Interval Balance Percent Uncollectible Not past due1-30 days past due31-60 days past due61-90 days past due91-180 days past dueOver 180 days past due $3,250,0001,050,000780,000320,000240,000150,000 0.8%2.47.018.034.085.0 $5, 790,000 Estimate the proper balance of the allowance for doubtful accounts as ofDecember 31.
Question Content Area Estimating Allowance for Doubtful Accounts Kirchhoff Industries has a past history of uncollectible accounts, as shown below. Age Class PercentUncollectible Not past due 1% 1-30 days past due 5 31-60 days past due 25 61-90 days past due 35 Over 90 days past due 50 Estimate the allowance for doubtful accounts, based on the aging of receivables schedule below. Kirchhoff IndustriesAging of Receivables Scheduleblank Customer Balance Not PastDue 1-30 DaysPast Due 31-60 DaysPast Due 61-90 DaysPast Due Over 90 DaysPast Due Subtotals 840,000 495,600 184,800 75,600 42,000 42,000 Conover Industries 18,100 18,100 Keystone Company 18,200 18,200 Moxie Creek Inc. 6,600 6,600 Rainbow Company 10,000 10,000 Swanson Company 23,100 23,100 Total receivables 916,000 518,700 194,800 82,200 60,200 60,100 Percentage uncollectible 1% 5% 25% 35% 50% Allowance for Doubtful…
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2. XYZ Inc. uses the allowance method to estimate uncollectible accounts receivable. The company produced the following aging of the accounts receivable at year-end. Number of Days Outstanding Total 200,000 77,000 0-30 31-60 61-90 91-120 Accounts receivable % uncollectible Over 120 $15,000 46,000 39,000 23,000 1% 20% 4% 5% 8% Estimated bad debts Instructions: A. Calculate the total estimated bad debts based on the above information. B. Prepare the year-end adjusting journal entry to record the bad debts using the aged uncollectible accounts receivable determined in (A). Assume the current balance in Allowance for Doubtful Accounts is an $8,000 debit. C. Of the above accounts, $5,000 is determined to be specifically uncollectible. Prepare the journal entry to write off the uncollectible account. D. The company collects $5,000 subsequently on a specific account that had previously been determined to be uncollectible in (C). Prepare the journal entry (ies) necessary to restore the account…

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