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 $15,500. Jarden prepares a schedule of its December 31 accounts receivable by age. Accounts Receivable $ 880,000 352,000 70, 400 35, 200 14, 080 Not due: 1 to 30: 31 to 60: 61 to 90: Over 90: Age of Accounts Receivable Not yet due 1 to 30 days past due 31 to 60 days past due 61 to 90 days past due Over 90 days past due equired: . Compute the required balance of the Allowance for Doubtful Accounts at December 31 using an aging of accounts receivable. Accounts Receivable X Accounts Receivable $ 880,000 352,000 70, 400 35, 200 14, 080 X Percent Uncollectible (#.##%) Estimated balance of allowance for uncollectibles Expected Percent Uncollectible 1.25% 2.00 6.50 32.75 68.00 Required information [The following information applies to the questions displayed below.] Age of Accounts Receivable Not yet due On December 31, Jarden Company's Allowance for Doubtful Accounts has an unadjusted credit balance of $15,500. Jarden prepares a schedule of its December 31 accounts receivable by age. 1 to 30 days past due 31 to 60 days past due 61 to 90 days past due Over 90 days past due Estimated Uncollectible Expected Percent Uncollectible 1.25% 2.00 6.50 32.75 68.00
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 $15,500. Jarden prepares a schedule of its December 31 accounts receivable by age. Accounts Receivable $ 880,000 352,000 70, 400 35, 200 14, 080 Not due: 1 to 30: 31 to 60: 61 to 90: Over 90: Age of Accounts Receivable Not yet due 1 to 30 days past due 31 to 60 days past due 61 to 90 days past due Over 90 days past due equired: . Compute the required balance of the Allowance for Doubtful Accounts at December 31 using an aging of accounts receivable. Accounts Receivable X Accounts Receivable $ 880,000 352,000 70, 400 35, 200 14, 080 X Percent Uncollectible (#.##%) Estimated balance of allowance for uncollectibles Expected Percent Uncollectible 1.25% 2.00 6.50 32.75 68.00 Required information [The following information applies to the questions displayed below.] Age of Accounts Receivable Not yet due On December 31, Jarden Company's Allowance for Doubtful Accounts has an unadjusted credit balance of $15,500. Jarden prepares a schedule of its December 31 accounts receivable by age. 1 to 30 days past due 31 to 60 days past due 61 to 90 days past due Over 90 days past due Estimated Uncollectible Expected Percent Uncollectible 1.25% 2.00 6.50 32.75 68.00
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
[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 $15,500.
Jarden prepares a schedule of its December 31 accounts receivable by age.
Accounts
Receivable
$ 880,000
352,000
70, 400
35, 200
14, 080
Required:
1. Compute the required balance of the Allowance for Doubtful Accounts at December 31 using an aging of accounts receivable.
Accounts
Receivable
Age of Accounts Receivable
Not yet due
1 to 30 days past due
31 to 60 days past due
61 to 90 days past due
Over 90 days past due
Not due:
1 to 30:
31 to 60:
61 to 90:
Over 90:
Estimated balance of allowance for uncollectibles
Accounts
Receivable
$ 880,000
352,000
70, 400
35, 200
14, 080
View transaction list
X
X
Date
December 31
X
Percent
Uncollectible (#.##%)
X
Record entry
Required information
[The following information applies to the questions displayed below.]
Note: Enter debits before credits.
On December 31, Jarden Company's Allowance for Doubtful Accounts has an unadjusted credit balance of $15,500.
Jarden prepares a schedule of its December 31 accounts receivable by age.
Age of Accounts Receivable
Not yet due
1 to 30 days past due
31 to 60 days past due
61 to 90 days past due
Over 90 days past due
Journal entry worksheet
< 1
Record the estimated bad debts.
2. Prepare the adjusting entry to record bad debts expense at December 31. (Round percentage answers to nearest whole percent.
Do not round intermediate calculations.)
Expected Percent
=
Uncollectible
1.25%
2.00
6.50
32.75
68.00
General Journal
Clear entry
Estimated
Uncollectible
Expected Percent
Uncollectible
1.25%
2.00
6.50
32.75
68.00
Debit
Credit
View general journal
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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 $15,500.
Jarden prepares a schedule of its December 31 accounts receivable by age.
Accounts
Receivable
$ 880,000
352,000
70, 400
35, 200
14, 080
Required:
1. Compute the required balance of the Allowance for Doubtful Accounts at December 31 using an aging of accounts receivable.
Accounts
Receivable
Age of Accounts Receivable
Not yet due
1 to 30 days past due
31 to 60 days past due
61 to 90 days past due
Over 90 days past due
Not due:
1 to 30:
31 to 60:
61 to 90:
Over 90:
Estimated balance of allowance for uncollectibles
Accounts
Receivable
$ 880,000
352,000
70, 400
35, 200
14, 080
View transaction list
X
X
Date
December 31
X
Percent
Uncollectible (#.##%)
X
Record entry
Required information
[The following information applies to the questions displayed below.]
Note: Enter debits before credits.
On December 31, Jarden Company's Allowance for Doubtful Accounts has an unadjusted credit balance of $15,500.
Jarden prepares a schedule of its December 31 accounts receivable by age.
Age of Accounts Receivable
Not yet due
1 to 30 days past due
31 to 60 days past due
61 to 90 days past due
Over 90 days past due
Journal entry worksheet
< 1
Record the estimated bad debts.
2. Prepare the adjusting entry to record bad debts expense at December 31. (Round percentage answers to nearest whole percent.
Do not round intermediate calculations.)
Expected Percent
=
Uncollectible
1.25%
2.00
6.50
32.75
68.00
General Journal
Clear entry
Estimated
Uncollectible
Expected Percent
Uncollectible
1.25%
2.00
6.50
32.75
68.00
Debit
Credit
View general journal
>
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