Stellar Corporation operates in an industry that has a high rate of bad debts. Before any year-end adjustments, the balance in Stellar's Accounts Receivable account was $597,400 and Allowance for Doubtful Accounts had a credit balance of $43,540. 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 $319,800 0.97 Between 16 and 30 days 110,400 0.90 Between 31 and 45 days 88,700 0.87 Between 46 and 60 days 43,600 0.81 Between 61 and 75 days 20,300 0.54 Over 75 days (to be written off) 14,600 0.00 What is the appropriate balance for Allowance for Doubtful Accounts at year-end? Balance for Allowance for Doubtful Accounts $

Stellar Corporation operates in an industry that has a high rate of bad debts. Before any year-end adjustments, the balance in Stellar's Accounts Receivable account was $597,400 and Allowance for Doubtful Accounts had a credit balance of $43,540. 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 $319,800 0.97 Between 16 and 30 days 110,400 0.90 Between 31 and 45 days 88,700 0.87 Between 46 and 60 days 43,600 0.81 Between 61 and 75 days 20,300 0.54 Over 75 days (to be written off) 14,600 0.00 What is the appropriate balance for Allowance for Doubtful Accounts at year-end? Balance for Allowance for Doubtful Accounts $

College Accounting, Chapters 1-27

23rd Edition

ISBN:9781337794756

Author:HEINTZ, James A.

Publisher:HEINTZ, James A.

Chapter16: Accounting For Accounts Receivable

Section: Chapter Questions

Problem 3CP: At the end of 20-3, Martel Co. had 410,000 in Accounts Receivable and a credit balance of 300 in...

See similar textbooks

Similar questions

At the end of 20-3, Martel Co. had 410,000 in Accounts Receivable and a credit balance of 300 in Allowance for Doubtful Accounts. Martel has now been in business for three years and wants to base its estimate of uncollectible accounts on its own experience. Assume that Martel Co.s adjusting entry for uncollectible accounts on December 31, 20-2, was a debit to Bad Debt Expense and a credit to Allowance for Doubtful Accounts of 25,000. (a) Estimate Martels uncollectible accounts percentage based on its actual bad debt experience during the past two years. (b) Prepare the adjusting entry on December 31, 20-3, for Martel Co.s uncollectible accounts.
Bristax Corporation recorded $1,385,660 in credit sales for the year, and $732,410 in accounts receivable. The uncollectible percentage is 3.1% for the income statement method and 4.5% for the balance sheet method. A. Record the year-end adjusting entry for 2018 bad debt using the income statement method. B. Record the year-end adjusting entry for 2018 bad debt using the balance sheet method. C. Assume there was a previous debit balance in Allowance for Doubtful Accounts of $20,550; record the year-end entry for bad debt using the income statement method, and then the entry using the balance sheet method. D. Assume there was a previous credit balance in Allowance for Doubtful Accounts of $17,430; record the year-end entry for bad debt using the income statement method, and then the entry using the balance sheet method.
Jars Plus recorded $861,430 in credit sales for the year and $488,000 in accounts receivable. The uncollectible percentage is 2.3% for the income statement method, and 3.6% for the balance sheet method. A. Record the year-end adjusting entry for 2018 bad debt using the income statement method. B. Record the year-end adjusting entry for 2018 bad debt using the balance sheet method. C. Assume there was a previous debit balance in Allowance for Doubtful Accounts of $10,220, record the year-end entry for bad debt using the income statement method, and then the entry using the balance sheet method. D. Assume there was a previous credit balance in Allowance for Doubtful Accounts of $5,470, record the year-end entry for bad debt using the income statement method, and then the entry using the balance sheet method.
Tonis Tech Shop has total credit sales for the year of 170,000 and estimates that 3% of its credit sales will be uncollectible. Allowance for Doubtful Accounts has a credit balance of 275. Prepare the adjusting entry at year-end for the estimated bad debt expense. (a) Based on an aging of its accounts receivable, Kyles Cyclery estimates that 3,200 of its year-end accounts receivable will be uncollectible. Allowance for Doubtful Accounts has a debit balance of 280 at year-end. Prepare the adjusting entry at year-end for the estimated uncollectible accounts.
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.
Ink Records recorded $2,333,898 in credit sales for the year and $1,466,990 in accounts receivable. The uncollectible percentage is 3% for the income statement method and 5% for the balance sheet method. A. Record the year-end adjusting entry for 2018 bad debt using the income statement method. B. Record the year-end adjusting entry for 2018 bad debt using the balance sheet method. C. Assume there was a previous credit balance in Allowance for Doubtful Accounts of $20,254; record the year-end entry for bad debt using the income statement method, and then the entry using the balance sheet method.
Sheffield Corporation operates in an industry that has a high rate of bad debts. Before any year-end adjustments, the balance in Sheffield's Accounts Receivable account was $593,900 and Allowance for Doubtful Accounts had a credit balance of $40,480. 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 $314,700 0.98 Between 16 and 30 days 118,900 0.90 Between 31 and 45 days 82,800 0.86 Between 46 and 60 days 43,900 0.79 Between 61 and 75 days 18,200 0.52 Over 75 days (to be written off) 15,400 0.00 (a) What is the appropriate balance for Allowance for Doubtful Accounts at year-end? Balance for allowance for doubtful accounts $
Vishnu
What is the appropriate balance for Allowance for Doubtful Accounts at year-end? Balance for allowance for doubtful accounts S 49.324
Bramble Corporation operates in an industry that has a high rate of bad debts. Before any year-end adjustments, the balance in Bramble's Accounts Receivable account was $585,400 and Allowance for Doubtful Accounts had a credit balance of $41,390. The year-end balance reported in the balance sheet for Allowance for Doubtful Accounts will be based on the aging schedule shown below. Days Account Outstanding Less than 16 days Between 16 and 30 days Between 31 and 45 days Between 46 and 60 days Between 61 and 75 days Over 75 days (to be written off) (a) Amount $310,900 116,500 82,000 41,700 19,800 14,500 Probability of Collection Balance for allowance for doubtful accounts i $ 0.96 0,90 0.86 0.81 0.59 0.00 What is the appropriate balance for Allowance for Doubtful Accounts at year-end?
Answer this last accounting question please!
Manilow Corporation operates in an industry that has a highrate of bad debt. Before any year-end adjustments, the balance inManilow’s Accounts Receivable was $555,000 and Credit LossAllowance has a credit balance of $40,000. The year-end balancereported in the statement of financial position for Credit LossAllowance will be based on the aging schedule shown below.Day AccountOutstanding Amount Probability ofCollectionLess than 16 days 300,000 .9816-30 days 100,000 .9031-45 days 80,000 .8546-60 days 40,000 .8061-75 days 20,000 .55Over 75 days 15,000 .00Instruction:1.1 Compute expected credit loss for the year endingDecember 31 and the net realizable value of Manilow’saccounts receivable as of December 311.2 Prepare the journal entry to record the expected credit lossfor the year.