Financial accounting 2.8 Question Star Electronics has aging accounts receivableas follows: Current ($50,000), 1-30 days($30,000), 31-60 days ($20,000), and over 60days ($10,000). Using estimated uncollectiblerates of 1%, 5%, 10%, and 20% respectively,Provide the required balance in the allowancefor doubtful accounts.

Explanation of Aging of Accounts Receivable: Aging of accounts receivable is a method of analyzing…

Answered: Star Electronics has aging accounts…

Financial Accounting

15th Edition

ISBN:9781337272124

Author:Carl Warren, James M. Reeve, Jonathan Duchac

Publisher:Carl Warren, James M. Reeve, Jonathan Duchac

Chapter9: Receivables

Section: Chapter Questions

Problem 9E: Kirchhoff Industries has a past history of uncollectible accounts, as follows. Estimate the...

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Kirchhoff 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 9-8.
From aging its Accounts Receivable, Marlon De Guzman Company estimates that 18,750 of it's accounts will be uncollectible. At this time, Allowance for Doubtful Accounts has an 8,400 credit balance. The adjusting entry is. A. Debit allowance for doubtful accounts, 18,750; credit accounts receivable, 18,750. B. Debit doubtful accounts expense, 10,350; credit allowance for doubtful accounts, 10,350 C. Debit doubtful accounts expense, 18,750; credit accounts receivable 18,750 D. Debit allowance for doubtful accounts, 10,350; credit doubtful accounts expense, 10,350 (Which one is correct)
Before the year-end adjustment the Allowance for Doubtful Accounts has a debit balance of $5,000. Using the aging of receivables method, the desired balance of the Allowance for Doubtful Accounts is estimated as $35,000. a) What is the uncollectible accounts expense for the period? b) What is the journal entry required? c) What is the balance of the Allowance for Doubtful Accounts after adjustment? d) If the accounts receivable balance is $325,000, what is the net realizable value of the receivables after adjustment?
Using the % of aging-of-accounts receivable to estimate uncollectible accounts, The Valley Corporation estimates a target balance of $10,626 of its total accounts receivable that will be uncollectible. Prior to adjustment, the Allowance for Uncollectible accounts has a credit balance of $3,000. When recording the journal entry to make this adjustment, what is the amount of the debit for bad debt expense? Fill in the blank with your calculated number. DO NOT include commas, $ signs, period, decimal points, etc., just enter the raw number. Webcourses will add commas to your answer automatically. For example, if you calculated the answer to be $24,123, you would only input: 24123 ASUS f4 f5 f6 f7 f8 f9 f10 f11 E3 & 4. 5 7 8. T Y 61 16 R %24
Tanning Company analyzes its receivables to estimate uncollectible accounts. The accounts receivable balance is $368,000 and credit sales are $1,000,000. An aging of accounts receivable estimates that $29,440 of the outstanding receivables will be uncollectible. What adjusting entry will Tanning Company make if Allowance for Doubtful Accounts has a credit balance of $2,000 before adjustment? a. Account Debit Credit Bad Debt Expense 29,440 Allowance for Doubtful Accounts 29,440 b. Account Debit Credit Bad Debt Expense 27,440 Allowance for Doubtful Accounts 27,440 c. Account Debit Credit Bad Debt Expense 94,320 Allowance for Doubtful Accounts 94,320 d. Account Debit Credit Bad Debt Expense 31,440 Allowance for Doubtful Accounts 31,440
Determine the amount to be added to Allowance for Doubtful Accounts in each of the following cases AND indicate the ending balance in each case. (a) Debit balance of $400 in Allowance for Doubtful Accounts just prior to adjustment. Using the aging method, the balance of Allowance for Doubtful Accounts is estimated as $10,000. (b) Credit balance of $1000 in Allowance for Doubtful Accounts just prior to adjustment. Bad debt expense is estimated at 2% of credit sales, Total sales were $1,800,000 of which $400,000 were cash sales.
Determine the amount to be added to Allowance for Doubtful Accounts in each of the following cases AND indicate the ending balance in each case. (a) Debit balance of $400 in Allowance for Doubtful Accounts just prior to adjustment. Using the aging method, the balance of Allowance for Doubtful Accounts is estimated as $10,000. (b) Credit balance of $1000 in Allowance for Doubtful Accounts just prior to adjustment. Bad debt expense is estimated at 2% of credit sales, Total sales were $1,800,000 of which $400,000 were cash sales. View keyboard shortcuts EditViewInsertFormatToolsTable 12pt Paragraph
Assume that accounts receivable and the allowance for doubtful accounts (AFDA) ending balances were OMR500,000 debit and OMR5000 credit balances respectively at December 31, and the uncollectible accounts are estimated to be 5% of accounts receivable. Find out the ending balance of ADFA from the above given information . a . None of the given options b . OMR 30000 C. OMR 25000 d . OMR 20000
Crane Company had a 1/1/20 balance in the Allowance for Doubtful Accounts of $33500. During 2020, it wrote off $22000 of accounts and collected $6620 on accounts previously written off. The balance in Accounts Receivable was $630000 at 1/1 and $730000 at 12/31. At 12/31/20, Crane estimates that 5% of accounts receivable will prove to be uncollectible. What is Bad Debt Expense for 2020? $18380. $25000. $3000. $36500.
What amount should it debit bad debt expense?
Providing for doubtful accounts At the end of the current year, the accounts receivable account has a debit balance of $1,243,000 and sales for the year total $14,100,000. a. The allowance account before adjustment has a debit balance of $16,800. Bad debt expense is estimated at 1/2 of 1% of sales. b. The allowance account before adjustment has a debit balance of $16,800. An aging of the accounts in the customer ledger indicates estimated doubtful accounts of $53,800. c. The allowance account before adjustment has credit balance of $5,500. Bad debt expense is estimated at 3/4 of 1% of sales. d. The allowance account before adjustment has a credit balance of $5,500. An aging of the accounts in the customer ledger indicates estimated doubtful accounts of $45,700. Determine the amount of the adjusting entry to provide for doubtful accounts under each of the assumptions (a through d) listed above. 70,500 ✓ 70,600 ✓ 111,250 X a. b. C. d. Feedback Check My Work An estimate based on a percent…
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Star Electronics has aging accounts receivable as follows: Current ($50,000), 1-30 days ($30,000), 31-60 days ($20,000), and over 60 days ($10,000). Using estimated uncollectible rates of 1%, 5%, 10%, and 20% respectively, Provide the required balance in the allowance for doubtful accounts.