PROBLEM 9 Robin Company uses the following allowance method of accounting for bad debts. The following summary schedule was prepared from an aging of accounts receivable outstanding on December 31, 2021. Probability of Collection 98% No. of Days Outstanding Amount 0-30 days P500,000 31-60 days 200,000 Over 60 days 100,000 The following information is available for the current year: Net credit sales for the year Allowance for uncollectible accounts, January 1, 2021 Allowance for uncollectible accounts, December 31, 2021 (before adjustment) 90% 80% P4,000,000 5,000 (cr.) 2,000 (dr.) Explain how to get the Uncollectible accounts expense Explain the allowance for uncollectible accounts reported in word's financial statements for 2021.

PROBLEM 9 Robin Company uses the following allowance method of accounting for bad debts. The following summary schedule was prepared from an aging of accounts receivable outstanding on December 31, 2021. Probability of Collection 98% No. of Days Outstanding Amount 0-30 days P500,000 31-60 days 200,000 Over 60 days 100,000 The following information is available for the current year: Net credit sales for the year Allowance for uncollectible accounts, January 1, 2021 Allowance for uncollectible accounts, December 31, 2021 (before adjustment) 90% 80% P4,000,000 5,000 (cr.) 2,000 (dr.) Explain how to get the Uncollectible accounts expense Explain the allowance for uncollectible accounts reported in word's financial statements for 2021.

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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Chapter 5: Receivables and Sales A company reports the following amounts at 12/31/YR2 (before any year-end adjustment). Management estimates 8% of the receivables will not be collectible. The company uses the percent-of-receivables method to determine bad debt expense. Credit sales for the year 1,000,000 Accounts receiyable (A/R) 90,000 Allowance for uncollectible accounts ("AUA") 1,800 Credit Bal. Estimated percent uncollectible. 6.0% Create T accounts for A/R, AUA and Bad debt expense to help with the following questions. Accounts Receivable AUA Bad Debt Expense How much of the Accounts Receivable does management not expect to collect? What amount will the company record as bad debt expense for the YR2? What amount will be shown on the 12/31 balance sheet for Net Accounts Receivable? 1 2 3 On January 5, YR3, the company writes off an A/R they determined is uncollectible. After the write off, what is the balance in AUA? The 4 amount of the write-off is: 200 After the write off, what…
Analysis of Receivables Method At the end of the current year, Accounts Receivable has a balance of $660,000, Allowance for Doubtful Accounts has a credit balance of $6,000, and sales for the year total $2,.970,000. Using the aging method, the balance of Allowance for Doubtful Accounts is estimated as $25.200. a. Determine the amount of the adjusting entry for uncollectible accounts. b. Determine the adjusted balances of Accounts Receivable, Allowance for Doubtful Accounts, and Bad Debt Expense. Accounts Receivable Allowance for Doubtful Accounts Bad Debt Expense c. Determine the net realizable value of accounts receivable.
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On December 31, 2022, Ace Hardware reported the following information on its balance sheet: Accounts Receivable $1,350,000 Allowance for Doubtful Accounts (credit) 81,000 During 2023, the Company had the following transactions related to receivables: Sales on Account Collections on Account Write-offs of uncollectible accounts Recovery of previously written off accounts If bad debts are estimated to be 1.50% of credit sales, determine the ending balance in the Allowance for Doubtful Accounts after adjustment, at the end of 2023: Select one: O $4,500,000 4,275,000 90,000 18,000 a. $67,500 b. $94,500 c. $58,500 d. $76,500 e. $74,250
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View Policies Current Attempt in Progress Vaughn Manufacturing has outstanding accounts receivable totaling $ 6.47 million as of December 31 and sales on credit during the year of $ 24.5 million. There is also a credit balance of $ 11500 in the allowance for doubtful accounts. If the company estimates that 6% of its outstanding receivables will be uncollectible, what will be the amount of bad debt expense recognized for the year? O $388200. O $ 399700. O $ 376700. O $1470000. Save for Later Attempts: 0 of 1 used Submit Answer
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