Required information Skip to question [The following information applies to the questions displayed below.] Daley Company prepared the following aging of receivables analysis at December 31. Days Past Due Total 0 1 to 30 31 to 60 61 to 90 Over 90 Accounts receivable $ 670,000 $ 416,000 $ 110,000 $ 56,000 $ 38,000 $ 50,000 Percent uncollectible 3 % 4 % 7 % 9 % 12 % a. Estimate the balance of the Allowance for Doubtful Accounts assuming the company uses 5% of total accounts receivable to estimate uncollectibles, instead of the aging of receivables method. b. Prepare the adjusting entry to record Bad Debts Expense using the estimate from part a. Assume the unadjusted balance in the Allowance for Doubtful Accounts is a $14,000 credit. c. Prepare the adjusting entry to record bad debts expense using the estimate from part a. Assume the unadjusted balance in the Allowance for Doubtful Accounts is a $3,000 debit. Req A - Estimate the balance of the Allowance for Doubtful Accounts assuming the company uses 5% of total accounts receivable to estimate uncollectibles, instead of the aging of receivables method. Req B and C - Prepare the adjusting entry to record Bad Debts Expense using the estimate from part a. Assume the unadjusted balance in the Allowance for Doubtful Accounts is a $14,000 credit. Prepare the adjusting entry to record bad debts expense using the estimate from part a. Assume the unadjusted balance in the Allowance for Doubtful Accounts is a $3,000 debit.
Required information Skip to question [The following information applies to the questions displayed below.] Daley Company prepared the following aging of receivables analysis at December 31. Days Past Due Total 0 1 to 30 31 to 60 61 to 90 Over 90 Accounts receivable $ 670,000 $ 416,000 $ 110,000 $ 56,000 $ 38,000 $ 50,000 Percent uncollectible 3 % 4 % 7 % 9 % 12 % a. Estimate the balance of the Allowance for Doubtful Accounts assuming the company uses 5% of total accounts receivable to estimate uncollectibles, instead of the aging of receivables method. b. Prepare the adjusting entry to record Bad Debts Expense using the estimate from part a. Assume the unadjusted balance in the Allowance for Doubtful Accounts is a $14,000 credit. c. Prepare the adjusting entry to record bad debts expense using the estimate from part a. Assume the unadjusted balance in the Allowance for Doubtful Accounts is a $3,000 debit. Req A - Estimate the balance of the Allowance for Doubtful Accounts assuming the company uses 5% of total accounts receivable to estimate uncollectibles, instead of the aging of receivables method. Req B and C - Prepare the adjusting entry to record Bad Debts Expense using the estimate from part a. Assume the unadjusted balance in the Allowance for Doubtful Accounts is a $14,000 credit. Prepare the adjusting entry to record bad debts expense using the estimate from part a. Assume the unadjusted balance in the Allowance for Doubtful Accounts is a $3,000 debit.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Concept explainers
Bad Debts
At the end of the accounting period, a financial statement is prepared by every company, then at that time while preparing the financial statement, the company determines among its total receivable amount how much portion of receivables is collected by the company during that accounting period.
Accounts Receivable
The word “account receivable” means the payment is yet to be made for the work that is already done. Generally, each and every business sells its goods and services either in cash or in credit. So, when the goods are sold on credit account receivable arise which means the company is going to get the payment from its customer to whom the goods are sold on credit. Usually, the credit period may be for a very short period of time and in some rare cases it takes a year.
Question
Required information
Skip to question
[The following information applies to the questions displayed below.]
Daley Company prepared the following aging of receivables analysis at December 31.
| Days Past Due | |||||||||||||||||||||||
| Total | 0 | 1 to 30 | 31 to 60 | 61 to 90 | Over 90 | ||||||||||||||||||
| $ | 670,000 | $ | 416,000 | $ | 110,000 | $ | 56,000 | $ | 38,000 | $ | 50,000 | ||||||||||||
| Percent uncollectible | 3 | % | 4 | % | 7 | % | 9 | % | 12 | % | |||||||||||||
a. Estimate the balance of the Allowance for Doubtful Accounts assuming the company uses 5% of total accounts receivable to estimate uncollectibles, instead of the aging of receivables method.
b. Prepare the
c. Prepare the adjusting entry to record bad debts expense using the estimate from part a. Assume the unadjusted balance in the Allowance for Doubtful Accounts is a $3,000 debit.
Req A - Estimate the balance of the Allowance for Doubtful Accounts assuming the company uses 5% of total accounts receivable to estimate uncollectibles, instead of the aging of receivables method.
Req B and C -
Prepare the adjusting entry to record Bad Debts Expense using the estimate from part a. Assume the unadjusted balance in the Allowance for Doubtful Accounts is a $14,000 credit.
Prepare the adjusting entry to record bad debts expense using the estimate from part a. Assume the unadjusted balance in the Allowance for Doubtful Accounts is a $3,000 debit.
![Required Information
[The following infomation applies to the questions displayed below.]
Deley Company prepared the following eging of receivebles analysis at December 31.
Days Past Due
Total
1 to 30
31 to 68 61 to 98
Over 9e
Accounts receivable
$670,800
$416,800
$110,000
$56,000
$38,0ee
$50,000
Percent uncollectible
3%
4%
7%
9%
12%
a. Estimate the balance of the Allowance for Doubtful Accounts assuming the company uses 5% of total accounts receiveble to estimate
uncollectibles, instesd of the aging of receivables method.
b. Prepare the sdjusting entry to record Bad Debts Expense using the estimete from part a. Assume the unsdjusted balance in the Allowance
for Doubtful Accounts is a $14,000 credit.
c. Prepare the sdjusting entry to record bad debts expense using the estimate from part a. Assume the unadjusted balance in the Allowence for
Doubtful Accounts is a $3,000 debit.
Complete this question by entering your answers in the tabs below.
Reg A
Reg B and C
Prepare the adjusting entry to record Bad Debts Expense using the estimate from part a. Assume the unadjusted balance in
the Allowance for Doubtful Accounts is a $14,000 credit.
Prepare the adjusting entry to record bad debts expense using the estimate from part a. Assume the unadjusted balance in the
Allowance for Doubtful Accounts is a $3,000 debit.
Show less a
View transaction list
Journal entry worksheet
2
Record estimated
bad debts assuming
that Allowance for
Record estimated bad debts assuming that Allowance for Doubtful
Accounts has a $14,000 credit balance.
Note: Enter debits before credits.
Doubtful Accounts
has a $3,000 debit
balance.
Date
General Journal
Debit
Credit
Dec 31
Record entry
Clear entry
View general journal](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F44d84d1f-5997-4168-9e5f-f56ef74728ed%2F2ee62db2-0093-433d-bb30-267691952be3%2F3op3j7e_processed.png&w=3840&q=75)
Transcribed Image Text:Required Information
[The following infomation applies to the questions displayed below.]
Deley Company prepared the following eging of receivebles analysis at December 31.
Days Past Due
Total
1 to 30
31 to 68 61 to 98
Over 9e
Accounts receivable
$670,800
$416,800
$110,000
$56,000
$38,0ee
$50,000
Percent uncollectible
3%
4%
7%
9%
12%
a. Estimate the balance of the Allowance for Doubtful Accounts assuming the company uses 5% of total accounts receiveble to estimate
uncollectibles, instesd of the aging of receivables method.
b. Prepare the sdjusting entry to record Bad Debts Expense using the estimete from part a. Assume the unsdjusted balance in the Allowance
for Doubtful Accounts is a $14,000 credit.
c. Prepare the sdjusting entry to record bad debts expense using the estimate from part a. Assume the unadjusted balance in the Allowence for
Doubtful Accounts is a $3,000 debit.
Complete this question by entering your answers in the tabs below.
Reg A
Reg B and C
Prepare the adjusting entry to record Bad Debts Expense using the estimate from part a. Assume the unadjusted balance in
the Allowance for Doubtful Accounts is a $14,000 credit.
Prepare the adjusting entry to record bad debts expense using the estimate from part a. Assume the unadjusted balance in the
Allowance for Doubtful Accounts is a $3,000 debit.
Show less a
View transaction list
Journal entry worksheet
2
Record estimated
bad debts assuming
that Allowance for
Record estimated bad debts assuming that Allowance for Doubtful
Accounts has a $14,000 credit balance.
Note: Enter debits before credits.
Doubtful Accounts
has a $3,000 debit
balance.
Date
General Journal
Debit
Credit
Dec 31
Record entry
Clear entry
View general journal
![Required Information
[The following infomation applies to the questions displayed below.]
Deley Company prepared the following eging of receivebles analysis at December 31.
Days Past Due
1 to 30
$118,000
Total
31 to 60
61 to 90
Over 9e
Accounts receivable
$678,000 $416,800
$56,800
$38,000
$50,0ee
Percent uncollectible
3%
4%
7%
9%
12%
a. Estimate the balance of the Allowance for Doubtful Accounts assuming the company uses 5% of total accounts receiveble to estimate
uncollectibles, instesd of the aging of receivables method.
b. Prepare the sdjusting entry to record Bad Debts Expense using the estimate from part a. Assume the unadjusted bolance in the Allowance
for Doubtful Accounts is a $14,000 credit.
c. Prepare the sdjusting entry to record bad debts expense using the estimate from part a. Assume the unadjusted balance in the Allowence for
Doubtful Accounts is a $3,000 debit.
Complete this question by entering your answers in the tabs below.
Req A
Req B and C
Estimate the balance of the Allowance for Doubtful Accounts assuming the company uses 5% of total accounts
receivable to estimate uncollectibles, instead of the aging of receivables method.
Estimated balance of allowance for
uncollectibles
K Reg A
Req B and C >](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F44d84d1f-5997-4168-9e5f-f56ef74728ed%2F2ee62db2-0093-433d-bb30-267691952be3%2F4p98nsc_processed.png&w=3840&q=75)
Transcribed Image Text:Required Information
[The following infomation applies to the questions displayed below.]
Deley Company prepared the following eging of receivebles analysis at December 31.
Days Past Due
1 to 30
$118,000
Total
31 to 60
61 to 90
Over 9e
Accounts receivable
$678,000 $416,800
$56,800
$38,000
$50,0ee
Percent uncollectible
3%
4%
7%
9%
12%
a. Estimate the balance of the Allowance for Doubtful Accounts assuming the company uses 5% of total accounts receiveble to estimate
uncollectibles, instesd of the aging of receivables method.
b. Prepare the sdjusting entry to record Bad Debts Expense using the estimate from part a. Assume the unadjusted bolance in the Allowance
for Doubtful Accounts is a $14,000 credit.
c. Prepare the sdjusting entry to record bad debts expense using the estimate from part a. Assume the unadjusted balance in the Allowence for
Doubtful Accounts is a $3,000 debit.
Complete this question by entering your answers in the tabs below.
Req A
Req B and C
Estimate the balance of the Allowance for Doubtful Accounts assuming the company uses 5% of total accounts
receivable to estimate uncollectibles, instead of the aging of receivables method.
Estimated balance of allowance for
uncollectibles
K Reg A
Req B and C >
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