On December 31, Jarden Company's Allowance for Doubtful Accounts has an unadjusted credit balance of $14,000.Jarden prepares a schedule of its December 31 accounts receivable by age.AccountsExpected PercentUncollectibleAge of Accounts ReceivableNot yet due1 to 30 days past due31 to 60 days past due61 to 90 days past dueOver 90 days past dueReceivable$ 800, 000320, 00064, 00032,00012, 8001.30%2.056.5533.0069.00Problem 7-3A (Algo) Part 1Required:1. Compute the required balance of the Allowance for Doubtful Accounts at December 31 using an aging of accounts receivable.AccountsPercentEstimatedReceivableUncollectible (#.##%)UncollectibleNot due:1 to 30:31 to 60:61 to 90:Over 90:Estimated balance of allowance for uncollectibles

Allowance for doubtful accounts is considered as a contra asset account. This account is used to…

On December 31, Jarden Company's Allowance for Doubtful Accounts has an unadjusted credit balance of $14,000. Jarden prepares a schedule of its December 31 accounts receivable by age. Accounts Expected Percent Uncollectible Receivable $ 800,000 320, 000 64, 000 32,000 12,800 Age of Accounts Receivable Not yet due 1 to 30 days past due 31 to 60 days past due 61 to 90 days past due Over 90 days past due 1.30% 2.05 6.55 33.00 69.00 Problem 7-3A (Algo) Part 1 Required: 1. Compute the required balance of the Allowance for Doubtful Accounts at December 31 using an aging of accounts receivable. Accounts Percent Estimated Receivable Uncollectible (#.##%) Uncollectible Not due: 1 to 30: %3D 31 to 60: %3D 61 to 90: Over 90: Estimated balance of allowance for uncollectibles

On December 31, Jarden Company's Allowance for Doubtful Accounts has an unadjusted credit balance of $14,000. Jarden prepares a schedule of its December 31 accounts receivable by age. Accounts Expected Percent Uncollectible Receivable $ 800,000 320, 000 64, 000 32,000 12,800 Age of Accounts Receivable Not yet due 1 to 30 days past due 31 to 60 days past due 61 to 90 days past due Over 90 days past due 1.30% 2.05 6.55 33.00 69.00 Problem 7-3A (Algo) Part 1 Required: 1. Compute the required balance of the Allowance for Doubtful Accounts at December 31 using an aging of accounts receivable. Accounts Percent Estimated Receivable Uncollectible (#.##%) Uncollectible Not due: 1 to 30: %3D 31 to 60: %3D 61 to 90: Over 90: Estimated balance of allowance for uncollectibles

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 summary of Milan Fashion's December 31, 2021, accounts receivable aging schedule is presented below along with the estimated percent uncollectible for each age group: Age Group Amount % 0-60 days $40,000 0.5 61-90 days 15,000 1.5 91-120 days 2,000 15.0 Over 120 days 800 80.0 The allowance for uncollectible accounts had a credit balance of $1,600 at January 1, 2021. During the year bad debts of $1,150 were written off. Also, $150 previously written off were paid by a customer. Required: Prepare all 2021 journal entries with respect to bad debts and the allowance for uncollectible accounts. Show computations. Prepare a T account for the allowance for uncollectible accounts from 1/1 to 12/31/21.
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