Performance Bike Co. is a wholesaler of motorcycle supplies. An aging of the company'saccounts receivable on December 31 and a historical analysis of the percentage of uncol-lectible accounts in each age category are as follows:PercentUncollectibleAge IntervalBalance$3,250,000Not past due0.8%1-30 days past due31-60 days past due61-90 days past due91-180 days past dueOver 180 days past due1,050,0002.4780,0007.018.0320,000240,00034.0150,00085.0$5,790,000Estimate the proper balance of the allowance for doubtful accounts as of December 31.

Analysis of receivables method:A method of determining the estimated uncollectible receivable based…

Answered: Performance Bike Co. is 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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Entry for Uncollectible Accounts Outlaw 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 each age category are given below. Age Interval Balance Estimated UncollectibleAccounts Percent Estimated UncollectibleAccounts Amount Not past due $500,000 3/4 % $3,750 1-30 days past due 55,000 4 2,200 31-60 days past due 25,000 6 1,500 61-90 days past due 18,000 14 2,520 91-180 days past due 13,000 42 5,460 Over 180 days past due 9,500 70 6,650 Total $620,500 $22,080 Assume that the allowance for doubtful accounts for Outlaw Bike Co. had a debit balance of $3,975 as of December 31. Journalize the adjusting entry for uncollectible accounts as of December 31.
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 each 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 $736,000 1/2% $fill in the blank 1 1-30 days past due 81,000 2 fill in the blank 2 31-60 days past due 36,800 8 fill in the blank 3 61-90 days past due 26,500 16 fill in the blank 4 91-180 days past due 19,100 39 fill in the blank 5 Over 180 days past due 14,000 65 fill in the blank 6 Total $913,400
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 analysis of the percentage of uncollectible account in each age category are as follows: Age Class 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 Estimate what the proper balance of the allowance for doubtful accounts should be as of December 31. Balance $868,000 95,500 43,400 31,200 22,600 16,500 $1,077,200 Percent Uncollectible 1/2% 4 8 16 38 80
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 each 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 $668,000 1/2% $ 1-30 days past due 73,500 3 31-60 days past due 33,400 8 61-90 days past due 24,000 18 91-180 days past due 17,400 41 Over 180 days past due 12,700 80 Total $829,000
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 analysis of the percentage of uncollectible accounts in each age category are as follows:Estimate what the proper balance of the allowance for doubtful accounts should be as of December 31.
Warner Company’s year-end unadjusted trial balance shows accounts receivable of $115,000, allowance for doubtful accounts of $760 (credit), and sales of $440,000. Uncollectibles are estimated to be 1.50% of accounts receivable. Prepare the December 31 year-end adjusting entry for uncollectibles. What amount would have been used in the year-end adjusting entry if the allowance account had a year-end unadjusted debit balance of $1,100?
Maxwell Inc., analyzed its accounts receivable balances at December 31, and arrived at the aged balances listed below, along with the percentage that is estimated to be uncollectible: % Considered Age Group Balance Uncollectible 0-30 days past due $300,000 1% 31-60 days past due 54,000 3% 61-120 days past due 60,000 6% 121-180 days past due 21,000 10% Over 180 days past due 6,000 20% $441,000 The company handles credit losses using the allowance method. The credit balance of the Allowance for Doubtful Accounts is $2,520 on December 31, before any adjustments. a. Determine the amount of the adjustment for estimated credit losses on December 31. b. Determine the financial statement effect of a write off of Porter Company's account on the following May 12, in the amount of $1,440. Use negative signs with answers, when appropriate. If a transaction increases and decreases the same Balance Sheet category, enter the increase amount in the first row and the decrease amount directly below (in…
Estimating Doubtful Accounts Easy Rider International is a wholesaler of motorcycle supplies. An aging of the company's accounts receivable on December 31, 20Y3, and a historical analysis of the percentage of uncollectible accounts in each age category are as follows: Age Interval Balance PercentUncollectible Not past due $342,200 1 % 1–30 days past due 127,600 5 31–60 days past due 52,200 25 61–90 days past due 29,000 35 91–180 days past due 29,000 50 Over 180 days past due 19,200 70 $599,200 Estimate what the balance of the allowance for doubtful accounts should be as of December 31, 20Y3. Enter your answers as positive amounts. Age Interval EstimatedUncollectibleAmount 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 $
Allen Bikes Ltd. has a year-end of December 31, 20x9. During the year, the company wrote off accounts receivable in the amount of $ 2,140. Allen's December 31, 20x9 general ledger account balances, prior to making any year-end adjusting journal entries, were as follows: Account Debit Credit Accounts Receivable 125,477 Allowance for Doubtful Accounts 614 Net Credit Sales 2,059,391 Allen Bikes Ltd. has estimated that bad debts will equal 2 of 1% of sales. What will be the dollar amount of the bad debt expense when making the adjusting journal entry for the year-ended December 31, 20x9 (round to the nearest whole dollar)?
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 each age category are as follows: Estimate the proper balance of the allowance for doubtful accounts should be as of December 31. Performance Bike Co. Estimation of Uncollectible Accounts December 31 Estimated Uncollectible Age Interval Balance Accounts Percent Not past due $888,000 1/2% 1-30 days past due 97,700 2 31-60 days past due 44,400 7 61-90 days past due 32,000 18 91-180 days past due 23,100 42 Over 180 days past due 16,900 65 Total $1,102,100 Estimated Uncollectible Accounts Amount
Prepare an aging schedule to determine the total estimated uncollectibles at March 31,2018
At the end of the year, Mercy Cosmetics’ balance of Allowance for Uncollectible Accounts is $440 (credit) before adjustment. The balance of Accounts Receivable is $17,000. The company estimates that 12% of accounts will not be collected over the next year. What adjustment would Mercy Cosmetics record for Allowance for Uncollectible Accounts? (If no entry is required for a particular transaction/event, select "No Journal Entry Required" in the first account field.)

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