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.
Sequoia, Inc. has given you the following information from its aging of Accounts Receivable. Using this information, determine the amount of the journal entry to record the estimated uncollectible accounts. Current $27,000 2% uncollectible 31 - 60 days 61- 90 days 6,000 5% uncollectible 3,000 15% uncollectible 91 and up 1.800 16% uncollectible The current balance in Allowance for Doubtful Accounts is a $144 debit. O A. $54,000 O B. $1,722 O C. $1,578 O D. $1,434
At the beginning of current year, ABC company reported that the allowance for doubtful account has a acredit balance of $170,000. The company uses the aging of accounts receivable as a way to estimate the allowance The following schedule was prepared: Not yet due $1,700,000 NL uncollectible1-30 days pasat due $1,200,000 5% uncollectible31-60 days past due $100,000 25% uncollectible61-90 days past due $150,000 50% uncollectibleover 90 days past due. $120,000 100% uncollectible Questions:1) What is the required allowance for doubtful accounts at year-end?2) How much would be the doubtful accounts expense for the current year?3) What is the adjusting entry for the doubtful accounts expense for the current year?4) What is the net realizable value of accounts receivable at year-end?5) What is the effect on current assets should the adjustment was not made?
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)
Total doubtful accounts at the end of the year are estimated to be $33,500 based on an aging of accounts receivable. If the balance in the Allowance for Doubtful Accounts is a $12,100 debit before adjustment, what is current year's Bad Debt Expense? Multiple Choice $12,100. $33,500. $21,400. $45,600.
The aging of accounts receivable shows the following data: 0-60 days due: balance is $74,500 with a 3% estimated uncollectible Over 60 days past due: balance is $4,000 with a 24% estimated uncollectible The current balance of Allowance for Bad Debits is a $500 CR Using the aging of receivables method, what is the balance of Allowance for Bad Debt? $3,195 DR $3,195 CR $3,695 CR $2,695 CR
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
At the of fiscal year before the accounts are adjusted, accounts receivable has a balance of $200000 and allowance for doubtful accounts has a credit balance of $2500. if the estimate of uncollectible accounts determined by aging the receivable is $8500, the amount of bad debt expense is?
An aging of a company's accounts receivable indicates the estimate of uncollectible receivables totals $4,459. If Allowance for Doubtful Accounts has a $1,125 credit balance, the adjustment to record the bad debt expense for the period will require a:
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.

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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.