Answered: Nine Inc.'s uncollectible accounts… | bartleby

FINANCIAL ACCOUNTING

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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Question

Practice Pack

What is the average bad debt expense rate for “91-120 days” accounts?

A. 76%

C. 10.38%

B. 8.6%

D. 41.80%

NINE, INC. cstimates its bad debt losses by aging its accounts reccivable. The aging schedule
of
accounts
reccivable at December
Age of Accounts
0 - 30 days
31 - 60 days
61 - 90 days
91 - 120 days
Over 120 days
31, 2016, is
Amount
presented below:
P 843,200
461,000
192,400
76,650
39,400
Ninc Inc.'s uncollectible accounts experience for the past 5 ycars are summarized in the
following schedule:
31 - 60
91 - 120
Days
0- 30
61 - 90
Davs
A/R Balance
Dec 31
P 1,312,500
999,999
Over 120
Year
Daus
Days
Days
2015
0.3%
1.8%
12%
38%
65%
2014
0.5%
1.6%
11%
41%
70%
1.5%
1.7%
2.0%
2013
465,000
816,000
1,243,667
0.2%
9%
50%
69%
2012
0.4%
10.2%
47%
81%
2011
0.9%
9.7%
33%
95%
The balance of the allowance for bad debts account at December 31, 2016, (before
adjustment) is P84,500.

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QUESTION 4 Ava Company sets bad debt expense at 3 percent of its sales. Ava reported total sales of $ 74408. Before the adjustment, Ava had $649 credit balance in its allowance for doubtful accounts. How much bad debt expense did Ava report on its income statement?
Answer b,d only
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Exercise 7-13 (Algo) Percent of accounts receivable method LO P3 Mazie Supply Company uses the percent of accounts receivable method. On December 31, it has outstanding accounts receivable of $112,500, and it estimates that 5% will be uncollectible. Prepare the year-end adjusting entry to record bad debts expense under the assumption that the Allowance for Doubtful Accounts has: (a) a $1,913 credit balance before the adjustment. (b) a $563 debit balance before the adjustment. View transaction list View journal entry worksheet No Transaction General Journal Debit Credit 1 Bad debts expense 7,538 Allowance for doubtful accounts
vin.3
LO 5 Calistoga Produce estimates bad debt expense at 0.30% of credit sales. The company reported accounts receivable and allowance for uncollectible accounts of $489,000 and $1,470 respectively, at December 31, 2023. During 2024, Calistoga's credit sales and collections were $335,000 and $306.000, respectively, and $1,870 in accounts receivable were written off. Calistoga's final balance in its allowance for uncollectible accounts at December 31, 2024, is: Multiple Choice O O O O $605. $1,255 $1,490. $510.
12.10 Doubtful debts – ageing method * LO3 On 1 June, McLean, Roberts and Associates had Accounts Receivable and Allowance for Doubtful Debts accounts as set out below. Ignore GST. Accounts Receivable 1/6 Balance 847 000 Allowance for Doubtful Debts 1/6 Balance 12 250 During June, the following transactions occurred: 1. fees earned on credit, $1 200 000 2. fees refunded, $25 000 3. accounts receivable collected, $1450 000 4. accounts written off as uncollectable, $14 740. Based on an ageing of accounts receivable on 30 June, the firm decided that the Allowance for Doubtful Debts account should have a credit balance of $13 000 on the balance sheet as at 30 June. Required (a) Prepare general journal entries to record the four transactions above and to adjust the Allowance for Doubtful Debts account. (b) Show how accounts receivable and the allowance for doubtful debts would appear on the balance sheet at 30 June. (c) On 29 July, Blundell Ltd, whose $1870 account had been written off as…
Percentage of Credit Sales Method At December 31, 2018, Garneau has a $10,000 credit balance in its allowance for doubtful accounts. Garneau estimates that 3% of its 2018 credit sales will eventually default. During 2018, Garneau had credit sales of $1,324,400. Required: Estimate the bad debt expense under the percentage of credit sales method.$
PA 4. LO 9.2 Jars Plus recorded $861,430 in credit sales for the year and $488,000 in accounts receivable. The uncollectible percentage is 2.3% for the income statement method, and 3.6% for the balance sheet method. A. Record the year-end adjusting entry for 2018 bad debt using the income statement method. B. Record the year-end adjusting entry for 2018 bad debt using the balance sheet method. C. Assume there was a previous debit balance in Allowance for Doubtful Accounts of $10,220, record the year-end entry for bad debt using the income statement method, and then the entry using the balance sheet method. D. Assume there was a previous credit balance in Allowance for Doubtful Accounts of $5,470, record the year-end entry for bad debt using the income statement method, and then the entry using the balance sheet method.
Past-Due Category 0-30 days 31-90 days Over 90 days Accounts Receivable Total $22,480 36,540 15,330 Percentage Uncollectible 6% 17% 25% Based on the aging schedule above, the total uncollectible estimated bad debt for Growth Markets, LLC is [round your answer to the nearest dollar & include the dollar sign, $, in your answer)
a. Calculate bad debt On December 31, after many attempts at collecting the outstanding balance of Copper Gallery, the controller decided to write off that balance. Aylmer calculates bad debt on trade receivables only, not on project receivables. Bad debt is estimated to be: 0-30 days 31 – 60 days 5% 61 – 90 days 7.5% 91 – 120 days 10% Over 120 days 15% 1% In the excel spreadsheet, see the tab labelled “Trade Accounts Receivable Detail" to perform any necessary calculations.
hf.3

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