Estimating Uncollectible Accounts and Reporting Accounts ReceivableLaFond Company analyzes its accounts receivable at December 31, and arrives at the age categories below along with the percentages that are estimated as uncollectible.Accounts EstimatedReceivable Loss %$ 90,00020,00011,0006,000Over 180 days past due4,000Total accounts receivable $ 131,000Age Group0-30 days past due31-60 days past due61-120 days past due121-1802964The balance of the allowance for uncollectible accounts is $520 on December 31, before any adjustments.TransactionRecord bad debts expense51025(a) What amount of bad debts expense will LaFond report in its income statement for the year?$0Cash Asset(b) Use the financial statement effects template to record LaFond's bad debts expense for the year.Use negative signs with your answers, when appropriate.NoncashAssetsBalance SheetLiabilitiesContributedCapital(c) What is the balance of accounts receivable on it December 31 balance sheet?$0xEarnedCapitalRevenue0✓Income StatementExpenses0 xNet Income

stimating Uncollectible Accounts and Reporting Accounts Receivable aFond Company analyzes its accounts receivable at December 31, and arrives at the age categories below along with the percentages that are estimated as uncollect Age Group 0-30 days past due 31-60 days past due 51-120 days past due 21-180 Over 180 days past due Total accounts receivable Accounts Estimated Receivable Loss% $ 90,000 20,000 11,000 6,000 4,000 $131.000 he balance of the allowance for uncollectible accounts is $520 on December 31, before any adjustments. 296 4 5 10 25 ) What amount of bad debts expense will LaFond report in its income statement for the year? ) Use the financial statement effects template to record LaFond's bad debts expense for the year. se negative signs with your answers, when appropriate. Transaction Record bad debts expense Cash Asset Noncash Assets 0x Balance Sheet Liabilities Contributed Capital What is the balance of accounts receivable on it December 31 balance sheet? 0 Earned Capital Revenue 0 Income Statement Expenses 0 x Net Income

stimating Uncollectible Accounts and Reporting Accounts Receivable aFond Company analyzes its accounts receivable at December 31, and arrives at the age categories below along with the percentages that are estimated as uncollect Age Group 0-30 days past due 31-60 days past due 51-120 days past due 21-180 Over 180 days past due Total accounts receivable Accounts Estimated Receivable Loss% $ 90,000 20,000 11,000 6,000 4,000 $131.000 he balance of the allowance for uncollectible accounts is $520 on December 31, before any adjustments. 296 4 5 10 25 ) What amount of bad debts expense will LaFond report in its income statement for the year? ) Use the financial statement effects template to record LaFond's bad debts expense for the year. se negative signs with your answers, when appropriate. Transaction Record bad debts expense Cash Asset Noncash Assets 0x Balance Sheet Liabilities Contributed Capital What is the balance of accounts receivable on it December 31 balance sheet? 0 Earned Capital Revenue 0 Income Statement Expenses 0 x Net Income

Cornerstones of Financial Accounting

4th Edition

ISBN:9781337690881

Author:Jay Rich, Jeff Jones

Publisher:Jay Rich, Jeff Jones

Chapter5: Sales And Receivables

Section: Chapter Questions

Problem 65E: Average Uncollectible Account Losses and Bad Debt Expense The accountant for Porile Company prepared...

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Concept explainers

Bad Debts

At the end of the accounting period, a financial statement is prepared by every company, then at that time while preparing the financial statement, the company determines among its total receivable amount how much portion of receivables is collected by the company during that accounting period.

Accounts Receivable

The word “account receivable” means the payment is yet to be made for the work that is already done. Generally, each and every business sells its goods and services either in cash or in credit. So, when the goods are sold on credit account receivable arise which means the company is going to get the payment from its customer to whom the goods are sold on credit. Usually, the credit period may be for a very short period of time and in some rare cases it takes a year.

Question

Estimating Uncollectible Accounts and Reporting Accounts Receivable
LaFond Company analyzes its accounts receivable at December 31, and arrives at the age categories below along with the percentages that are estimated as uncollectible.
Accounts Estimated
Receivable Loss %
$ 90,000
20,000
11,000
6,000
Over 180 days past due
4,000
Total accounts receivable $ 131,000
Age Group
0-30 days past due
31-60 days past due
61-120 days past due
121-180
296
4
The balance of the allowance for uncollectible accounts is $520 on December 31, before any adjustments.
Transaction
Record bad debts expense
5
10
25
(a) What amount of bad debts expense will LaFond report in its income statement for the year?
$0
Cash Asset
(b) Use the financial statement effects template to record LaFond's bad debts expense for the year.
Use negative signs with your answers, when appropriate.
Noncash
Assets
Balance Sheet
Liabilities
Contributed
Capital
(c) What is the balance of accounts receivable on it December 31 balance sheet?
$0
x
Earned
Capital
Revenue
0✓
Income Statement
Expenses
0 x
Net Income

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