Sigma Company began operations on January 1, 2020. On December 31, 2020 and 2021, the entity provided for uncollectible accounts expense based on 1% of annual credit sales. Required:Determine the allowance for doubtful accounts on January 1, 2021.Determine the allowance for doubtful accounts on December 31,2021 before adjustments.Determine the required allowance on December 31,2021.Prepare the adjustment to record the doubtful account expense for the current year. uncollectible accounts expense based on 1% of annual creditapplying certain percentages to the aging of accounts receivable.December 31, 2020 and 2021, the entity provided fordetermining the allowance for uncollectible accounts byOn January 1, 2021, the entity changed the method ofProblem 5-9 (AICPA Adapted)Sigma Company began operations onJanuary 1, 2020. Onproblem 5-1Osales.Days past invoice datePercent uncollectible3090180Over 180What amount shoul3191230,000200,000160,0001In addition, the entity wrote off all accounts receivable thes2080were over 1 year old.d100,000The following additional införmation related to the years endedDecember 31, 2021 and 2020:Roanne Companyfor uncollectible aohad charged P80ACCounts receivabProblem 5-11 (ICredit salesCollections, including recoveryAccounts written offRecovery of accounts previously written off202120203,000,0002,915,00027,0007,0002,800,0002,400,000What was the deDays past invoice datenone900,000& 800,000& 100,0000.none0- 3031 - 9091 -180Over 180300,00080,00060,00025,000250,00090,00046,00015,000Problem 5-12Required:1. Determine the allowance for doubtful accounts on January1, 2021.2. Determine the allowance for doubtful accounts on December31, 2021 before adjustment.3. Determine the required allowance on December 31, 2021.MAI Company'st the end of 2CFor the yeardoubtful accouWhat amountif uncollecti4. Prepare the adjustment to record the doubtful accountsexpense for the current year.4 150.000100,000250,000158350,000

Introduction Here are the proper answers 1. Php28,000 2. Php8,000 3. Php39,000 4. Dr. Expense…

Answered: Sigma Company began operations on…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Sigma Company began operations on January 1, 2020. On December 31, 2020 and 2021, the entity provided for uncollectible accounts expense based on 1% of annual credit sales.

Required:

Determine the allowance for doubtful accounts on January 1, 2021.
Determine the allowance for doubtful accounts on December 31,2021 before adjustments.
Determine the required allowance on December 31,2021.
Prepare the adjustment to record the doubtful account expense for the current year.

uncollectible accounts expense based on 1% of annual credit
applying certain percentages to the aging of accounts receivable.
December 31, 2020 and 2021, the entity provided for
determining the allowance for uncollectible accounts by
On January 1, 2021, the entity changed the method of
Problem 5-9 (AICPA Adapted)
Sigma Company began operations on
January 1, 2020. On
problem 5-1O
sales.
Days past invoice date
Percent uncollectible
30
90
180
Over 180
What amount shoul
31
91
230,000
200,000
160,000
1
In addition, the entity wrote off all accounts receivable thes
20
80
were over 1 year old.
d100,000
The following additional införmation related to the years ended
December 31, 2021 and 2020:
Roanne Company
for uncollectible ao
had charged P80
ACCounts receivab
Problem 5-11 (I
Credit sales
Collections, including recovery
Accounts written off
Recovery of accounts previously written off
2021
2020
3,000,000
2,915,000
27,000
7,000
2,800,000
2,400,000
What was the de
Days past invoice date
none
900,000
& 800,000
& 100,000
0.
none
0- 30
31 - 90
91 -180
Over 180
300,000
80,000
60,000
25,000
250,000
90,000
46,000
15,000
Problem 5-12
Required:
1. Determine the allowance for doubtful accounts on January
1, 2021.
2. Determine the allowance for doubtful accounts on December
31, 2021 before adjustment.
3. Determine the required allowance on December 31, 2021.
MAI Company's
t the end of 2C
For the year
doubtful accou
What amount
if uncollecti
4. Prepare the adjustment to record the doubtful accounts
expense for the current year.
4 150.000
100,000
250,000
158
350,000

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