Problem 5-19 (AICPA Ådaptea) Flappable Company began operations on January 1, 201 The entity provided for doubtful accounts based on 5% annual credit sales in prior years. On January 1, 2019; th entity changed the method of determining the allowance f doubtful accounts using an aging schedule. 2019 2018 2017 201 Credit sales Collections excluding recovery Accounts written off during year Recovery of accounts written off 15,000,000 9,500,000 8,000,000 6,000,00 11,700,000 8,200,000 6,700,000 4,500.00 120,000 40,000 200,000 100,000 80,000 35,000 Non None Days Account Outstanding Amount Probability of Collection 95% 30 days or less Between 31 and 60deve 3,000,000 1,500,000 80%
Problem 5-19 (AICPA Ådaptea) Flappable Company began operations on January 1, 201 The entity provided for doubtful accounts based on 5% annual credit sales in prior years. On January 1, 2019; th entity changed the method of determining the allowance f doubtful accounts using an aging schedule. 2019 2018 2017 201 Credit sales Collections excluding recovery Accounts written off during year Recovery of accounts written off 15,000,000 9,500,000 8,000,000 6,000,00 11,700,000 8,200,000 6,700,000 4,500.00 120,000 40,000 200,000 100,000 80,000 35,000 Non None Days Account Outstanding Amount Probability of Collection 95% 30 days or less Between 31 and 60deve 3,000,000 1,500,000 80%
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
1. What amount should be reported as allowance for doubtful accounts on December 31, 2019?
2. What amount should be reported as doubtful accounts expense for the current year?
Please show solutions along with the answers. Thank you!
![Flappable Company began operations on January 1, 201
The entity provided for doubtful accounts based on 5%
doubtful accounts using an aging schedule.
Problem 5-19 (AICPA Adapted)
Klappable Company began operations on January 1, 201
annual credit sales in prior years. On January 1, 2019; h
entity changed the method of determining the allowance f
2019
2018
2017
201
Credit sales
Collections excluding recovery
Accounts written off during year
Recovery of accounts written off
15,000,000 9,500,000 8,000,000 6,000,00
11,700,000 8,200,000 6,700,000 4,500,00
120,000
40,000
200,000
100,000
80,000
35,000
None
None
Amount Probability of Collection
Days Account Outstanding
96%
30 days or less
Between 31 and 60 days
Between 61 and 180 days
Between 181 and one year
Over one year-to be written off
3,000,000
1,500,000
1,200,000
1,200,000
100,000
80%
76%
50%
0%
1. What amount should be reported as allowance for doubtful
accounts on December 31, 2019?
а. 1,350,000
b. 1,450,000
c. 1,250,000
d. 1,000,000
2. What amount should be reported as doubtful accounts
expense for the current year?
a. 500,000
b. 600,000
c. 700,000
d. 400,000
3. What is the net realizable value of accounts receivable
on December 31, 2019?.
a. 6,900,000
b. 7,000,000
c. 5,550,000
d. 5,650,000](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fd641ce18-cd37-4557-9fdd-783407346b61%2Fa2cfbcb7-cd8c-4d33-af64-0612cbf0bdfe%2F81rgxcn_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Flappable Company began operations on January 1, 201
The entity provided for doubtful accounts based on 5%
doubtful accounts using an aging schedule.
Problem 5-19 (AICPA Adapted)
Klappable Company began operations on January 1, 201
annual credit sales in prior years. On January 1, 2019; h
entity changed the method of determining the allowance f
2019
2018
2017
201
Credit sales
Collections excluding recovery
Accounts written off during year
Recovery of accounts written off
15,000,000 9,500,000 8,000,000 6,000,00
11,700,000 8,200,000 6,700,000 4,500,00
120,000
40,000
200,000
100,000
80,000
35,000
None
None
Amount Probability of Collection
Days Account Outstanding
96%
30 days or less
Between 31 and 60 days
Between 61 and 180 days
Between 181 and one year
Over one year-to be written off
3,000,000
1,500,000
1,200,000
1,200,000
100,000
80%
76%
50%
0%
1. What amount should be reported as allowance for doubtful
accounts on December 31, 2019?
а. 1,350,000
b. 1,450,000
c. 1,250,000
d. 1,000,000
2. What amount should be reported as doubtful accounts
expense for the current year?
a. 500,000
b. 600,000
c. 700,000
d. 400,000
3. What is the net realizable value of accounts receivable
on December 31, 2019?.
a. 6,900,000
b. 7,000,000
c. 5,550,000
d. 5,650,000
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