Required:1. Assemble the desired data. Enter a decrease in the amount of expense as a negative number and all other amounts as positive numbers.Call Systems CompanyBad Debt ExpenseYear Expense Actually ReportedExpense Based on EstimateIncrease (Decrease) in Amount of Expense Balance of Allowance Account, End of Year1st $1,0505,800$2nd1,5008,3003rd5,55013,3004th6,90016,3002. Experience during the first four years of operations indicated that the receivables were either collected within two years or had to be written off as uncollectible. Does theestimate of 12% of sales appear to be reasonably close to the actual experience with uncollectible accounts originating during the first two years?Yes Compare Two Methods of Accounting for Uncollectible ReceivablesCall Systems Company, a telephone service and supply company, has just completed its fourth year of operations. The direct write-off method of recording bad debt expensehas been used during the entire period. Because of substantial increases in sales volume and the amount of uncollectible accounts, the company is considering changing tothe allowance method. Information is requested as to the effect that an annual provision of 12% of sales would have had on the amount of bad debt expense reported foreach of the past four years. It is also considered desirable to know what the balance of Allowance for Doubtful Accounts would have been at the end of each year. Thefollowing data have been obtained from the accounts:Year of Origin of Accounts Receivable Written Off as UncollectibleUncollectible AccountsYear Sales1st2nd3rd4thWritten Off1st$1,160,0002nd 1,660,000$1,050$1,0502,8001,300$1,5003rd2,660,00011,5503,3502,650$5,5504th 3,260,00015,9503,6505,400$6,900Required:

Bad debt expense is an expense in which amount for the business is received but will not be paid.…

Required: 1. Assemble the desired data. Enter a decrease in the amount of expense as a negative number and all other amounts as positive numbers. Call Systems Company Bad Debt Expense Expense Actually Reported Expense Based on Estimate Increase (Decrease) in Amount of Expense Balance of Allowance Account, End of Year 1,050 5,800 Year 1st $ 2nd 1,500 3rd 5,550 4th 6,900 8,300 13,300 16,300 2. Experience during the first four years of operations indicated that the receivables were either collected within two years or had to be written off as uncollectible. Does the estimate of 12% of sales appear to be reasonably close to the actual experience with uncollectible accounts originating during the first two years? Yes

Required: 1. Assemble the desired data. Enter a decrease in the amount of expense as a negative number and all other amounts as positive numbers. Call Systems Company Bad Debt Expense Expense Actually Reported Expense Based on Estimate Increase (Decrease) in Amount of Expense Balance of Allowance Account, End of Year 1,050 5,800 Year 1st $ 2nd 1,500 3rd 5,550 4th 6,900 8,300 13,300 16,300 2. Experience during the first four years of operations indicated that the receivables were either collected within two years or had to be written off as uncollectible. Does the estimate of 12% of sales appear to be reasonably close to the actual experience with uncollectible accounts originating during the first two years? Yes

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

8.3 At the end of the current year, the accounts receivable account has a debit balance of $1,935,000 and sales for the year total $26,710,000. The allowance account before adjustment has a debit balance of $10,200. An aging of the accounts in the customer ledger indicates estimated doubtful accounts of $175,000. Determine the amount of the adjusting entry to provide for doubtful accounts under each of the assumptions c listed above.
Please don't provide answer in image format thank you
mi.3
An aging of a company's accounts receivable indicates an estimate of uncollectible accounts of $5,353. If Allowance for Doubtful Accounts has a $1,093 debit balance, the adjustment to journalize the bad debt expense for the period will require a a. debit to Bad Debt Expense for $6,446 b. debit to Bad Debt Expense for $5,353 c. credit to Allowance for Doubtful Accounts for $1,093 d. debit to Bad Debt Expense for $4,260
Need help with accounting ASAP
The company estimates 1% of sales revenue should be used to estimate for bad debt expense. what is the amount and what accounts
For the items listed below, indicate how each should be reported in the financial statements. Use the following letter code for your selections: a. Continuing operations b. Discontinued operations c. Prior period adjustment 1. The percentage of estimated bad debts was increased from 1% to 2%, thus increasing bad debt expense. 2. Obsolete inventory was written off. 3. Investments were sold for less than cost. 4. It was discovered that dividend revenue was inadvertently omitted from last year’s income statement. 5. The company sold one of its warehouses at a loss. 6. Litigation with the federal government related to income taxes of three years ago was settled. The company is continually involved in various adjustments with the federal government related to its taxes. 7. A component of the business was disposed of at a loss. 8. The company neglected to record depreciation expense on some assets in the previous year. 9. All production in the United States was…
vin.3
Casilda Company uses the aging approach to estimate bad debt expense. The ending balance of each account receivable is aged on the basis of three time periods as follows: (1) not yet due, $51,300; (2) up to 180 days past due, $14,800; and (3) more than 180 days past due, $5,000. Experience has shown that for each age group, the average loss rate on the amount of the receivables at year-end due to uncollectibility is (1) 4 percent, (2) 13 percent, and (3) 31 percent, respectively. At December 31, the end of the current year, the Allowance for Doubtful Accounts balance is $100 (credit) before the end-of-period adjusting entry is made. Required: 1. Prepare the appropriate bad debt expense adjusting entry for the current year. 2. Show how the various accounts related to accounts receivable should be shown on the December 31, current year, balance sheet. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Show how the various accounts related to accounts…
Haresh
1. The following account balances were extracted from the accounting records of Macy Corporation at the end of the year:Accounts Receivable $1,100,000Allowance for Uncollectible Accounts (Credit) $37,000Uncollectible-Account Expense $63,000What is the net realizable value of the accounts receivable? Select one:A. $1,163,000B. $1,137,000C. $1,100,000D. $1,063,000 Please show all steps.
Qw.8.