Show Attempt History Current Attempt in Progress Nash Corporation operates in an industry that has a high rate of bad debts. Before any year-end adjustments, the balance in Nash's Accounts Receivable account was $592,700 and Allowance for Doubtful Accounts had a credit balance of $40,680. The year-end balance reported in the balance sheet for Allowance for Doubtful Accounts will be based on the aging schedule shown below. Probability of Days Account Outstanding Amount Collection Less than 16 days $314,400 0.96 Between 16 and 30 days 116,600 0.90 Between 31 and 45 days 85,600 0.86 Between 46 and 60 days 41,900 0.79 Between 61 and 75 days 18,600 0.53 Over 75 days (to be written off) 15,600 0.00 (a) Your Answer Correct Answer Your answer is correct. What is the appropriate balance for Allowance for Doubtful Accounts at year-end? Balance for allowance for doubtful accounts $ 53761 - Your answer is partially correct. Show how accounts receivable would be presented on the balance sheet. Accounts Receivable NASH CORPORATION Balance Sheet (Partial) Less : Allowance for Doubtful Accounts Net Accounts Receivable eTextbook and Media Save for Later $ 592700 -53761 i 538939 Attempts: 1 of 3 used Submit Answer

Show Attempt History Current Attempt in Progress Nash Corporation operates in an industry that has a high rate of bad debts. Before any year-end adjustments, the balance in Nash's Accounts Receivable account was $592,700 and Allowance for Doubtful Accounts had a credit balance of $40,680. The year-end balance reported in the balance sheet for Allowance for Doubtful Accounts will be based on the aging schedule shown below. Probability of Days Account Outstanding Amount Collection Less than 16 days $314,400 0.96 Between 16 and 30 days 116,600 0.90 Between 31 and 45 days 85,600 0.86 Between 46 and 60 days 41,900 0.79 Between 61 and 75 days 18,600 0.53 Over 75 days (to be written off) 15,600 0.00 (a) Your Answer Correct Answer Your answer is correct. What is the appropriate balance for Allowance for Doubtful Accounts at year-end? Balance for allowance for doubtful accounts $ 53761 - Your answer is partially correct. Show how accounts receivable would be presented on the balance sheet. Accounts Receivable NASH CORPORATION Balance Sheet (Partial) Less : Allowance for Doubtful Accounts Net Accounts Receivable eTextbook and Media Save for Later $ 592700 -53761 i 538939 Attempts: 1 of 3 used Submit Answer

Financial Accounting: The Impact on Decision Makers

10th Edition

ISBN:9781305654174

Author:Gary A. Porter, Curtis L. Norton

Publisher:Gary A. Porter, Curtis L. Norton

Chapter7: Receivables And Investments

Section: Chapter Questions

Problem 7.2E: Allowance Method of Accounting for Bad Debtsâ€”Comparison of the Two Approaches Kandel Company had...

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Determining Bad Debt Expense Using the Aging Method At the beginning of the year, Tennyson Auto Parts had an accounts receivable balance of $31,800 and a balance in the allowance for doubtful accounts of $2,980 (credit). During the year, Tennyson had credit sales of $624,300, collected accounts receivable in the amount of $602,700, wrote off $18,600 of accounts receivable, and had the following data for accounts receivable at the end of the period: Required: 1. Determine the desired post adjustment balance in allowance for doubtful accounts. 2. Determine the balance in allowance for doubtful accounts before the bad debt expense adjusting entry is posted. 3. Compute bad debt expense. 4. Prepare the adjusting entry to record bad debt expense.
Entries for bad debt expense under the direct write-off and allowance methods The following selected transactions were taken from the records of Rustic Tables Company for the year ending December 31: A. Journalize the transactions under the direct write-off method. B. Journalize the transactions under the allowance method, assuming that the allowance account had a beginning balance of 36,000 at the beginning of the year and the company uses the analysis of receivables method. Rustic Tables Company prepared the following aging schedule for its accounts receivable: C. How much higher (lower) would Rustic Tables net income have been under the direct write-off method than under the allowance method?
Allowance Method of Accounting for Bad Debtsâ€”Comparison of the Two Approaches Kandel Company had the following data available for 2016 (before making any adjustments): Required Prepare the journal entry to recognize bad debts under the following assumptions: (a) bad debts expense is expected to be 2% of net credit sales for the year and (b) Kandel expects it will not be able to collect 6% of the balance in accounts receivable at year-end. Assume instead that the balance in the allowance account is a $2,600 debit. How will this affect your answers to part (1)?
Estimating allowance for doubtful accounts Evers Industries has a past history of uncollectible accounts, as follows. Estimate the allowance for doubtful accounts, based on the aging of receivables schedule you completed in Exercise 8-8.
Tines Commerce computes bad debt based on the allowance method. They determine their current years balance estimation to be a credit of $45,000. The previous period had a credit balance in Allowance for Doubtful Accounts of $12,000. What should be the reported figure in the adjusting entry for the current period? A. $12,000 B. $45,000 C. $33,000 D. $57,000
Entries for bad debt expense under the direct write-off and allowance methods Casebolt Company wrote off the following accounts receivable as uncollectible for the first year of its operations ending December 31: A. Journalize the write-offs under the direct write-off method. B. Journalize the write-offs under the allowance method. Also, journalize the adjusting entry for uncollectible accounts. The company recorded 5,250,000 of credit sales during the year. Based on past history and industry averages, % of credit sales are expected to be uncollectible. C. How much higher (lower) would Casebolt Companys net income have been under the direct write-off method than under the allowance method?
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An aging of a company's accounts receivable indicates that $13,000 are estimated to be uncollectible. If Allowance for Doubtful Accounts has a $1,200 credit balance, the adjustment to record bad debts for the period will require a Select one: a. credit to Allowance for Doubtful Accounts for $13,000. b. debit to Bad Debt Expense for $12,800 C. debit to Bad Debt Expense for $13,000. d. The answer does not exist e. debit to Allowance for Doubtful Accounts for $11,800. Previous page Next page Jump to...
An aging of a company's accounts receivable indicates that $14,000 are estimated to be uncollectible. If Allowance for Doubtful Accounts has a $1,100 credit balance, the adjustment to record bad debts for the period will require a: A. debit to Allowance for Doubtful Accounts for $12,900 B. debit to Bad Debt Expense for $12,900 C. credit to Allowance for Doubtful Accounts for $14,000 D. debit to Bad Debt Expense for $14,000
Background imformation: The Lake Lucerne Company uses the allowance method of estimating bad debts expense. An aging schedule is prepared in order to calculate the balance in the allowance account. The percentage uncollectible is calculated as followed: 1-30 days= 1.5% 31-60 days= 3.5% 61-90 days= 12% 91-365 days= 70% Calculate the number of days each receivable is outstanding and Complete the Schedule of Accounts Receivable. Both are showed in the images attached for context and data. Make sure to show all work and formulas.