Outlaw Bike Co. is a wholesaler of motorcycle supplies. An aging of the company's accounts receivable on December 31 and a historical analy the percentage of uncollectible accounts in each age category are given below. Age Interval Not past due 1-30 days past due 31-60 days past due. 61-90 days past due 91-180 days past due Over 180 days past due Total Balance $606,000 66,700 30,300 21,800 15,800 11,500 $752,100 Estimated Uncollectible Accounts Percent 3/4 % 2 9 14 40 65 Estimated Uncollectible Accounts Amount $4,545 1,334 2,727 3,052 6,320 7,475 $25,453 Assume that the allowance for doubtful accounts for Outlaw Bike Co. had a debit balance of $4,580 as of December 31. Journalize the adjusting entry for uncollectible accounts as of December 31. If an amount box does not require an entry, leave it blank. Dec. 31

Q: What are the responsibilities of an originator?

A: The originator's responsibilities are: Originator communicates with all borrowers of mortgage loans…

Q: Define carried interest

A: Carried interest: It could be a portion of any profit that private equity and hedge reserves common…

Q: Explain unified sentences with examples

A: The sentences that a presenter or writer prepares to define the unity of decisions are said to be…

Q: What does Vouching test?

A: Vouching is the process that involves reviewing of original evidence to check whether the…

Q: what does measurement focus mean?

A: Accounting: It is the process of recording, classifying, summarizing all transactions of a business…

Q: What are the important guidelines for Selecting a MARR?

A: It places a base gainfulness prerequisite on the discount rate, or MARR, which a venture or…

Q: Discuss a case law to explain the above answer

A: Based on the information provided, it is likely that the gains made by Mr. Peter on the sale of the…

Q: what does fichacuristic mean?

A: NOTE: The word "fichacuristic" is a spelling/typo error of the word "futuristic" in Step 2 first…

Q: What is a VIE? State it's full form and meaning.

A: Explain the term variable interest entity (VIE). A legal business structure is known as a variable…

Q: What is meant by Remainderman?

A: The remainderman is a beneficiary that receives the principal left in an estate or trust after a…

Q: What is the difference between curriculum and instruction

A: The objective of this question is to understand the difference between two key concepts in…

Q: answers be itemized

A: There are situations when a company computes that if there is a change in the depreciation method…

Q: What is a statement of circumstances?

A: The external auditor is expected to lodge a statement of circumstances at the company's registered…

Q: What are “participation rights”?

A: Convertible securities: Convertible security is a security that has the potential to be converted…

Q: Give the meaning of Trust.

A: Beneficiary/ Fiduciary Trustee  A trust has a beneficiary and a trustee. The individual who is the…

Q: Illustrate the Guidelines for Selecting a MARR?

A: It places a base gainfulness prerequisite on the discount rate, or MARR, which a venture or…

Q: Identify the policyholder who transfers the title of the policy.

A: Answer

Q: Define going-concern assumption

A: Definition: Accounting: Accounting is a system, or a process of collecting and organizing economic…

Q: Define the concept of going concern?

A: Going concern Concept: The basic principle of this concept is that business is assumed to exist for…

Q: Define Franchise.

A: There are several forms of business like the sole proprietorship, partnership and corporation which…

Q: Define the term realization principle.

A: Accounting: Accounting refers to the information system, where the economic activities of a…

Q: Question: Briefly discuss what is internal control is all about using the definition?

A: Every company requires internal controls. Internal controls are quite important for an organization…

Q: How Subordination Clause is used?

A: In order to regulate the importance of a credit in the occasion of nonpayment, a moneylender might…

Q: Describe Caveats?

A: A notice that is given to the court that it must give caveator a fair hearing before making any…

Q: Define charter

A: Introduction: Charters are legalized documents that lawfully set up corporate companies. Only…

Q: Describe about the Going concern assumption with example.

A: Accounting:   Accounting is the process of recording the financial transaction of the organization…

Q: Define Simple interest.

A: Simple interest: The amount of interest computed on the principal amount for a time period at a…

Bad Debts

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.