Question:Young and Old Corporation (YOC)uses two aging categories to estimateuncollectible accounts. Accounts lessthan 60 days are considered youngand have a 4% uncollectible rate.Accounts more than 60 days areconsidered old and have a 35%uncollectible rateoldIf YOC has $107,000 of youngaccounts and $470,000 ofaccounts, how much shouldreported in the Allowance forDoubtful Accounts? Amount toreported?bebe

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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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Question: Assume that Simple Co. had credit sales of $250,000 and cost of goods sold of $150,000 for the period. Simple uses the aging method and estimates that the appropriate ending balance in the Allowance for Doubtful Accounts is $3,000. Before the end-of-period adjustment is made, the Allowance for Doubtful Accounts has a credit balance of $250. What amount of Bad Debt Expense would the company record as an end-of- period adjustment?
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Young and Old Corporation (YOC) uses two aging categories to estimate uncollectible accounts.Accounts less than 60 days are considered young and have a 5% uncollectible rate. Accounts morethan 60 days are considered old and have a 40% uncollectible rate.Required:1. If YOC has $100,000 of young accounts and $400,000 of old accounts, how much should bereported in the Allowance for Doubtful Accounts?2. If YOC’s Allowance for Doubtful Accounts currently has an unadjusted credit balance of$40,000, how much should be credited to the account?3. If YOC’s Allowance for Doubtful Accounts has an unadjusted debit balance of $5,000, howmuch should be credited to the account?4. Explain how YOC’s Allowance for Doubtful Accounts could have a debit balance
One company has estimated that $3150 of its accounts receiable will be uncollectible. If allownace for doubtful accounts already has a credit balance of $1102, and the percentage of receivables method is used, it sadjustment to recrod for the period will require a debit to what for what amount?
Estimating Allowance for Doubtful Accounts Kirchhoff Industries has a past history of uncollectible accounts, as follows. Age Class PercentUncollectible Not past due 2% 1-30 days past due 4 31-60 days past due 18 61-90 days past due 40 Over 90 days past due 75 Estimate the allowance for doubtful accounts, based on the aging of receivables schedule below. Kirchhoff Industries Estimate the Allowance for Doubtful Accounts Balance Not PastDue Days PastDue 1-30 Days PastDue 31-60 Days PastDue 61-90 Days PastDue Over 90 Subtotals $1,050,000 $600,000 $220,000 $115,000 $85,000 $30,000 Conover Industries 30,000 30,000 Keystone Company 18,000 18,000 Moxie Creek Inc. 9,000 9,000 Rainbow Company 26,400 26,400 Swanson Company 46,600 46,600 Total receivables 1,180,000 626,400 266,600 124,000 103,000 60,000 Percentage uncollectible 2% 4% 18% 40% 75%…
An aging of a company's accounts receivable indicates that $9000 is estimated to be uncollectible. If Allowance for Doubtful Accounts has a $4240 balance, the adjustment to record bad debts for the period will require a(n)
An aging of a company's accounts receivable indicates that $8300 are estimated to be uncollectible. If Allowance for Doubtful Accounts has a $3600 debit balance, the adjustment to record bad debts for the period will require a debit to Bad Debt Expense for $8300. credit to Allowance for Doubtful Accounts for $8300. debit to Bad Debt Expense for $11900. debit to Bad Debt Expense for $4700. Save for Later
Evers Industries has a past history of uncollectible accounts, as follows. Age Class Percent Uncollectible Not past due 3% 1–30 days past due 4 31–60 days past due 15 61–90 days past due 33 Over 90 days past due 86 Estimate the allowance for doubtful accounts, based on the aging of receivables information provided below. Evers Industries Estimate of Allowance for Doubtful Accounts 1 Days Past Due Days Past Due Days Past Due Days Past Due 2 Balance Not Past Due 1-30 31-60 61-90 Over 90 3 Total receivables 1,150,100.00 618,800.00 233,100.00 118,000.00 105,800.00 74,400.00 4 Percentage uncollectible 3.0% 4.0% 15.0% 33.0% 86.0% 5 Allowance for doubtful accounts
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Assume Simple Company had credit sales of $243,000 and cost of goods sold of $143,000 for the period. Simple uses the percentage of credit sales method and estimates that 2 percent of credit sales would result in uncollectible accounts. Before the end-of-period adjustment is made, the Allowance for Doubtful Accounts has a credit balance of $180. Required: What amount of Bad Debt Expense would the company record as an end-of-period adjustment?
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