Homework Help is Here – Start Your Trial Now!
Business
Accounting
% AGING OFA/R (part 1) Use the AR Aging Table below to answer the questions related to adjusting ADA on the % Aging Method: Aging of AR report (I left off the customer detail to make it easier) Current 30+ days 60+ days 90+ days 120+ days Total TOTALS $30,000 $15,000 $8,000 $5,000 $2,000 $60,000 % Uncollectable 2% 4% 6% 15% 25% Using the table above and your calculations. Answer the following questions about BDE. Consider the situations as separate from each other. if the UNADJUSTED balance of ADA is a $ A) Bad Debt Expense would be $ 2,000 CREDIT balance. if the UNADJUSTED balance of ADA is a B) Bad Debt Expense would be $ $1,000 DEBIT balance

% AGING OFA/R (part 1) Use the AR Aging Table below to answer the questions related to adjusting ADA on the % Aging Method: Aging of AR report (I left off the customer detail to make it easier) Current 30+ days 60+ days 90+ days 120+ days Total TOTALS $30,000 $15,000 $8,000 $5,000 $2,000 $60,000 % Uncollectable 2% 4% 6% 15% 25% Using the table above and your calculations. Answer the following questions about BDE. Consider the situations as separate from each other. if the UNADJUSTED balance of ADA is a $ A) Bad Debt Expense would be $ 2,000 CREDIT balance. if the UNADJUSTED balance of ADA is a B) Bad Debt Expense would be $ $1,000 DEBIT balance

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
See similar textbooks
icon
Related questions
Question
Practice Pack
## % Aging of Accounts Receivable (Part 1) ### Instructions: Use the AR Aging Table below to answer the questions related to adjusting ADA on the % Aging Method: ### Aging of Accounts Receivable Report *Note: Customer details have been omitted for simplicity.* | | Current | 30+ days | 60+ days | 90+ days | 120+ days | Total | |----------------|---------|----------|----------|----------|-----------|--------| | **Totals** | $30,000 | $15,000 | $8,000 | $5,000 | $2,000 | $60,000| | **% Uncollectable** | 2% | 4% | 6% | 15% | 25% | | ### Tasks: Using the table above and your calculations, answer the following questions about Bad Debt Expense (BDE). Consider the situations as separate from each other. #### Questions: A) Bad Debt Expense would be $ ________ if the UNADJUSTED balance of ADA is a $2,000 CREDIT balance. B) Bad Debt Expense would be $ ________ if the UNADJUSTED balance of ADA is a $1,000 DEBIT balance. --- This table helps businesses estimate the amount of receivables they might not collect based on the aging of those receivables. Each period category has an associated percentage that represents the estimated uncollectible amounts. This method aids in financial accuracy and planning.
Transcribed Image Text:## % Aging of Accounts Receivable (Part 1) ### Instructions: Use the AR Aging Table below to answer the questions related to adjusting ADA on the % Aging Method: ### Aging of Accounts Receivable Report *Note: Customer details have been omitted for simplicity.* | | Current | 30+ days | 60+ days | 90+ days | 120+ days | Total | |----------------|---------|----------|----------|----------|-----------|--------| | **Totals** | $30,000 | $15,000 | $8,000 | $5,000 | $2,000 | $60,000| | **% Uncollectable** | 2% | 4% | 6% | 15% | 25% | | ### Tasks: Using the table above and your calculations, answer the following questions about Bad Debt Expense (BDE). Consider the situations as separate from each other. #### Questions: A) Bad Debt Expense would be $ ________ if the UNADJUSTED balance of ADA is a $2,000 CREDIT balance. B) Bad Debt Expense would be $ ________ if the UNADJUSTED balance of ADA is a $1,000 DEBIT balance. --- This table helps businesses estimate the amount of receivables they might not collect based on the aging of those receivables. Each period category has an associated percentage that represents the estimated uncollectible amounts. This method aids in financial accuracy and planning.
**% Aging of A/R (Part 2)** Using the table above and the related calculations you determined. ***Required*** Show the Balance Sheet Presentation (partial only) of Accounts Receivable (A/R) and Allowance for Doubtful Accounts (ADA) based on the % Aging of A/R.
Transcribed Image Text:**% Aging of A/R (Part 2)** Using the table above and the related calculations you determined. ***Required*** Show the Balance Sheet Presentation (partial only) of Accounts Receivable (A/R) and Allowance for Doubtful Accounts (ADA) based on the % Aging of A/R.
Expert Solution
video

Learn your way

Includes step-by-step video

steps

Step by step

Solved in 3 steps

SEE SOLUTIONCheck out a sample Q&A here
Blurred answer
Similar questions
  • SEE MORE QUESTIONS
Recommended textbooks for you
FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
Accounting
ISBN:
9781259964947
Author:
Libby
Publisher:
MCG
Accounting
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education
SEE MORE TEXTBOOKS