Required information [The following information applies to the questions displayed below] On December 31, Jarden Company's Allowance for Doubtful Accounts has an unadjusted credit balance of $14,000. Jarden prepares a schedule of its December 31 accounts receivable by age. Accounts Receivable $ 820,000 328,000 Age of Accounts Receivable Not yet due 1 to 30 days past due Expected Percent Uncollectible 1.30% 2.05 65,600 31 to 60 days past due 6.55 32,800 61 to 90 days past due 33.00 13,120 Over 90 days past due 69.00 3. On June 30 of the next year, Jarden concludes that a customer's $5,100 receivable is uncollectible and the account is written off. Does this write-off directly affect Jarden's net income? Does this write-off directly affect Jarden's net income?
Required information [The following information applies to the questions displayed below] On December 31, Jarden Company's Allowance for Doubtful Accounts has an unadjusted credit balance of $14,000. Jarden prepares a schedule of its December 31 accounts receivable by age. Accounts Receivable $ 820,000 328,000 Age of Accounts Receivable Not yet due 1 to 30 days past due Expected Percent Uncollectible 1.30% 2.05 65,600 31 to 60 days past due 6.55 32,800 61 to 90 days past due 33.00 13,120 Over 90 days past due 69.00 3. On June 30 of the next year, Jarden concludes that a customer's $5,100 receivable is uncollectible and the account is written off. Does this write-off directly affect Jarden's net income? Does this write-off directly affect Jarden's net income?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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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.
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Required information
[The following information applies to the questions displayed below]
On December 31, Jarden Company's Allowance for Doubtful Accounts has an unadjusted credit balance of $14,000.
Jarden prepares a schedule of its December 31 accounts receivable by age.
Accounts
Receivable
$ 820,000
328,000
Age of Accounts Receivable
Expected Percent
Uncollectible
Not yet due
1.30%
1 to 30 days past due
2.05
65,600
31 to 60 days past due
6.55
32,800
13,120
61 to 90 days past due
Over 90 days past due
33.00
69.00
3. On June 30 of the next year, Jarden concludes that a customer's $5,100 receivable is uncollectible and the account is written off.
Does this write-off directly affect Jarden's net income?
Does this write-off directly affect Jarden's net income?](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F58960793-fd35-4e19-b57e-4a84eb1f0939%2F3a669d78-36f9-45b1-90cb-babd50319c7a%2Fvi4gov_processed.jpeg&w=3840&q=75)
Transcribed Image Text:!
Required information
[The following information applies to the questions displayed below]
On December 31, Jarden Company's Allowance for Doubtful Accounts has an unadjusted credit balance of $14,000.
Jarden prepares a schedule of its December 31 accounts receivable by age.
Accounts
Receivable
$ 820,000
328,000
Age of Accounts Receivable
Expected Percent
Uncollectible
Not yet due
1.30%
1 to 30 days past due
2.05
65,600
31 to 60 days past due
6.55
32,800
13,120
61 to 90 days past due
Over 90 days past due
33.00
69.00
3. On June 30 of the next year, Jarden concludes that a customer's $5,100 receivable is uncollectible and the account is written off.
Does this write-off directly affect Jarden's net income?
Does this write-off directly affect Jarden's net income?
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