### Accounts Receivable AnalysisSheffield Corp. has accounts receivable of $94,400 as of March 31, 2022. The credit terms are 2/10, n/30. As of March 31, 2022, there is a $2,115 credit balance in the Allowance for Doubtful Accounts prior to adjustment. The company uses the percentage-of-receivables basis to estimate uncollectible accounts. Below are the company's estimates of bad debts.#### Bad Debt Estimates and Accounts Receivable| **Age of Accounts** | **Balance, March 31** | **Estimated Percentage Uncollectible** ||------------------------|--------------------|-------------------------------------|| | **2022** | **2021** | || Current | $64,400 | $81,960 | 2% || 1-30 days past due | 13,300 | 7,240 | 5% || 31-90 days past due | 9,100 | 2,260 | 30% || Over 90 days past due | 7,600 | 1,010 | 50% || **Total** | $94,400 | $92,470 | |#### Calculation Task(a) Determine the total estimated uncollectibles as of March 31, 2022.Formula: **Total estimated uncollectibles = Sum of (Each category's balance * Estimated percentage uncollectible)**Please input the total estimated uncollectibles below:The total estimated uncollectibles: **$ \_\_\_\_\_\_\_\_\_**---### Detailed Graph/Diagram Explanation**Table Explanation**:- **Current** represents receivables that are not past due.- **1-30 days past due** represents receivables that are between 1 and 30 days overdue.- **31-90 days past due** represents receivables that are between 31 and 90 days overdue.- **Over 90 days past due** represents receivables that are more than 90 days overdue.The table lists the balance of receivables for each category for the years 2022 and 2021 along with the estimated percentage that

Estimated uncollectible balance :— It is calculated by multiplying balance of accounts receivable…

Sheffield Corp. has accounts receivable of $94,400 at March 31, 2022. Credit terms are 2/10, n/30. At March 31, 2022, there is a $2,115 credit balance in Allowance for Doubtful Accounts prior to adjustment. The company uses the percentage-of-receivables basis for estimating uncollectible accounts. The company's estimates of bad debts are as shown below. Age of Accounts Current 1-30 days past due 31-90 days past due Over 90 days past due (a) Balance, March 31 2021 $81,960 7,240 2,260 2022 $64,400 13,300 9,100 7,600 $94.400 $92,470 1,010 The total estimated uncollectibles Estimated Percentage Uncollectible Determine the total estimated uncollectibles at March 31 2022 2 % 5 30 50

Sheffield Corp. has accounts receivable of $94,400 at March 31, 2022. Credit terms are 2/10, n/30. At March 31, 2022, there is a $2,115 credit balance in Allowance for Doubtful Accounts prior to adjustment. The company uses the percentage-of-receivables basis for estimating uncollectible accounts. The company's estimates of bad debts are as shown below. Age of Accounts Current 1-30 days past due 31-90 days past due Over 90 days past due (a) Balance, March 31 2021 $81,960 7,240 2,260 2022 $64,400 13,300 9,100 7,600 $94.400 $92,470 1,010 The total estimated uncollectibles Estimated Percentage Uncollectible Determine the total estimated uncollectibles at March 31 2022 2 % 5 30 50

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

At the end of the current year, Accounts Receivable has a balance of $926,220 Allowance for Doubtful Accounts has a credit balance of $5,149 and sales for the year total $3,960,000. Bad debt expense is estimated at 2 of 1% of sales. a. Determine the amount of the adjusting entry for bad debt expense. b. Determine the adjusted balances of Accounts Receivable, Allowance for Doubtful Accounts, and Bad Debt Expense. Adjusted Balance Accounts Receivable $4 Allowance for Doubtful Accounts Bad Debt Expense c. Determine the net realizable value of accounts receivable. 2$
Pina Colada Corp. uses the percentage of receivables method for recording bad debts expense. The accounts receivable balance is $270000 and credit sales are $2710000. Management estimates that 3% of accounts receivable will be uncollectible. What adjusting entry will Pina Colada Corp. make if the Allowance for Doubtful Accounts has a credit balance of $2700 before adjustment?
The Manda Panda Company uses the allowance method to account for bad debts. At the beginning of 2018, theallowance account had a credit balance of $75,000. Credit sales for 2018 totaled $2,400,000 and the year-endaccounts receivable balance was $490,000. During this year, $73,000 in receivables were determined to be uncollectible. Manda Panda anticipates that 3% of all credit sales will ultimately become uncollectible. The fiscal yearends on December 31.Required:1. Does this situation describe a loss contingency? Explain.2. What is the bad debt expense that Manda Panda should report in its 2018 income statement?3. Prepare the appropriate journal entry to record the contingency.4. What is the net accounts receivable value Manda Panda should report in its 2018 balance sheet?
Crane Co. uses the percentage-of-receivables basis to record bad debt expense. It estimates that 3% of accounts receivable will become uncollectible. Accounts receivable are $549,000 at the end of the year, and the allowance for doubtful accounts has a credit balance of $1,880. (a) Prepare the adjusting journal entry to record bad debt expense for the year. (Credit account titles are automatically indented when amount is entered. Do not indent manually.) Account Titles and Explanation eTextbook and Media List of Accounts Save for Later Debit Credit (b) The parts of this question must be completed in order. This part will be available when you complete the part above.
Dorothy Company uses the percentage-of-receivables method for recording bad debt expense. The Accounts Receivable balance is $250,000 and credit sales are $1,000,000. Management estimates that 6% of accounts receivable will be uncollectible. What adjusting entry will Dorothy Company make if the Allowance for Doubtful Accounts has a credit balance of $2,500 before adjustment?
At the end of the current year, Accounts Receivable has a balance of $675,000; Allowance for Doubtful Accounts has a debit balance of $5,400; and credit sales for the year total $3,000,000. An analysis of the receivables indicates that uncollectible receivables are estimated to be $45,000. a. Determine the amount of the adjusting entry for bad debt expense.fill in the blank 1 of 2$ b. Determine the adjusted balances of Accounts Receivable, Allowance for Doubtful Accounts, and Bad Debt Expense. Line Item Description Adjusted Balance Accounts Receivable $fill in the blank 2 Allowance for Doubtful Accounts fill in the blank 3 Bad Debt Expense fill in the blank 4 c. Determine the net realizable value of accounts receivable.fill in the blank 2 of 2$
The following unadjusted balances of Echo Company are presented at September 30, 2023: Dr. Cr. Accounts receivable $100 000 Sales returns and allowances 40 000 Allowance for doubtful accounts $ 2 500 Credit Sales 750 000 (a) Prepare the journal entry for estimated bad debts assuming that doubtful accounts are estimated to be 6% of gross accounts receivable. (b) Prepare the journal entry for estimated bad debts assuming that doubtful accounts are estimated to be 1% of net sales
Oriole Company uses the percentage-of-receivables basis to record bad debt expense and concludes that 2% of accounts receivable will become uncollectible. Accounts receivable are $ 620,000 at the end of the year, and the allowance for doubtful accounts has a credit balance of $ 3,320. (a) V Your answer is correct Prepare the adjusting journal entry to record bad debt expense for the year. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.) Account Titles and Explanation Debit Credit Bad Debt Expense 9080 Allowance for Doubtful Accounts 9080 eTextbook and Media List of Accounts Attempts: 2 of 3 used (b) Your answer is partially correct. If the allowance for doubtful accounts had a debit balance of $ 800 instead of a credit balance of $ 3,320, prepare the adjusting journal entry for bad debt expense. (Credit account titles are automatically…
At the end of the current year, Accounts Receivable has a balance of $947,700; Allowance for Doubtful Accounts has a credit balance of $7,201; and credit sales for the year total $3,040,000. Bad debt expense is estimated at 1/2 of 1% of credit sales. a. Determine the amount of the adjusting entry for bad debt expense. $ b. Determine the adjusted balances of Accounts Receivable, Allowance for Doubtful Accounts, and Bad Debt Expense. Accounts Receivable Allowance for Doubtful Accounts Adjusted Balance Bad Debt Expense c. Determine the net realizable value of accounts receivable. $
During 2018, yellow Corp. made sales of 370,000 on account. The balances in its Account Receivable and Allowance for doubtful accounts on December 31,2018 were $100,000 and 15,000(credit) respectively. An aging schedule indicated that $22,000 of the receivables would prove uncollectible. The amount of bad debts expenses that had to be recorded was?
The following accounts were found in the ledger of DanDan Co. on December 31 of the current year: Dr. Accounts Receivable - P300,000; Cr. Allowance for bad debts - P8,000; Cr. Cash Sales - P900,000; Cr. Credit Sales - P1,000,000. Analysis indicates that 5% of the outstanding accounts receivable will not be collected. How much will be adjustment necessary on December 31 for Allowance for bad debts?
On the year end of July 31, 2020, Rainbow Appliances had the following account balances before adjustments for bad debt was made. Net Credit Sales for the period $1,028,000 CR Accounts Receivable $656,000 DR AFDA $1,900 DR Do not enter dollar signs or commas in the input boxes. a) Use the year-end balances reported on the balance sheet and the aging schedule shown below to calculate the allowance for doubtful accounts. Aging Category Bad Debt % Balance Estimated Bad Debt Less than 30 days 2% $422,000 31-60 days 4% $105,000 61-90 days 11% $75,000 91-120 days 28% $37,000 Over 120 days 52% $17,000 Total $656,000 Prepare the journal entry to record bad debt expense for the year: Date Account Title and Explanation Debit Credit Jul 31 To record bad debt expense b) Assume instead that Rainbow Appliances used the income statement approach for estimating bad debt. If historical data indicates that approximately 2% of net credit sales are uncollectible, what amount is expected to be…