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Sunland Inc. uses the allowance method to estimate uncollectible accounts receivable. The company produced the following aging of the accounts receivable at year-end. (a)   Correct answer icon Your answer is correct. Calculate the total estimated bad debts based on the below information.         Number of Days Outstanding     Total   0–30   31–60   61–90   91–120   Over 120 Accounts receivable   200,900   77,000   45,800   38,700   22,900   $ 16,500 % uncollectible       2%   5%   6%   9%   21% Estimated Bad debts   $ enter a dollar amount   $ enter a dollar amount   $ enter a dollar amount   $ enter a dollar amount

Sunland Inc. uses the allowance method to estimate uncollectible accounts receivable. The company produced the following aging of the accounts receivable at year-end. (a)   Correct answer icon Your answer is correct. Calculate the total estimated bad debts based on the below information.         Number of Days Outstanding     Total   0–30   31–60   61–90   91–120   Over 120 Accounts receivable   200,900   77,000   45,800   38,700   22,900   $ 16,500 % uncollectible       2%   5%   6%   9%   21% Estimated Bad debts   $ enter a dollar amount   $ enter a dollar amount   $ enter a dollar amount   $ enter a dollar amount

FINANCIAL ACCOUNTING
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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Sunland Inc. uses the allowance method to estimate uncollectible accounts receivable. The company produced the following aging of the accounts receivable at year-end.

(a)

 
Correct answer icon
Your answer is correct.
Calculate the total estimated bad debts based on the below information.

       
Number of Days Outstanding
   
Total
  
0–30
  
31–60
  
61–90
  
91–120
  
Over 120
Accounts receivable   200,900   77,000   45,800   38,700   22,900   $ 16,500
% uncollectible       2%   5%   6%   9%   21%
Estimated Bad debts   $ enter a dollar amount   $ enter a dollar amount   $ enter a dollar amount   $ enter a dollar amount
NUMDer or DaysOustandg 31-60 61-90 91-120 Over 120 45,800 38,700 22,900 $ 16,500 5% 6% 9% 21% 2290 2322 2061 3465 eTextbook and Media List of Accounts Attempts: 2 of 3 used (b) - (d) (b) Prepare the year-end adjusting journal entry to record the bad debts using the aged uncollectible accounts receivable determined in (a). Assume the current balance in Allowance for Doubtful Accounts is a $7,800 debit. (c) Of the above accounts, $ 4.500 is determined to be specifically uncollectible. Prepare the journal entry to write off the uncollectible account. The company collects S 4,500 subsequently ona specific account that had previously been determined to be uncollectible in (c). Prepare the journal entries necessary to restore the account and record the cash collection. (d) (Credit account titles are automatically indented when amount is entered. Do not indent manually.) No Account Titles and Explanation Debit Credit (b) (c) (d) (To reverse write-off.) (To record collection of write off.) %24 %24
Transcribed Image Text:NUMDer or DaysOustandg 31-60 61-90 91-120 Over 120 45,800 38,700 22,900 $ 16,500 5% 6% 9% 21% 2290 2322 2061 3465 eTextbook and Media List of Accounts Attempts: 2 of 3 used (b) - (d) (b) Prepare the year-end adjusting journal entry to record the bad debts using the aged uncollectible accounts receivable determined in (a). Assume the current balance in Allowance for Doubtful Accounts is a $7,800 debit. (c) Of the above accounts, $ 4.500 is determined to be specifically uncollectible. Prepare the journal entry to write off the uncollectible account. The company collects S 4,500 subsequently ona specific account that had previously been determined to be uncollectible in (c). Prepare the journal entries necessary to restore the account and record the cash collection. (d) (Credit account titles are automatically indented when amount is entered. Do not indent manually.) No Account Titles and Explanation Debit Credit (b) (c) (d) (To reverse write-off.) (To record collection of write off.) %24 %24
Sunland Inc. uses the allowance method to estimate uncollectible accounts receivable. The company produced the following aging of the accounts receivable at year-end. (a) Your answer is correct. Calculate the total estimated bad debts based on the below information. Number d Total 0-30 31-60 Accounts receivable 200,900 77,000 45,800 % uncollectible 2% 5% Estimated Bad debts 11678 $ 1540 2290 %24 %24 %24 %24
Transcribed Image Text:Sunland Inc. uses the allowance method to estimate uncollectible accounts receivable. The company produced the following aging of the accounts receivable at year-end. (a) Your answer is correct. Calculate the total estimated bad debts based on the below information. Number d Total 0-30 31-60 Accounts receivable 200,900 77,000 45,800 % uncollectible 2% 5% Estimated Bad debts 11678 $ 1540 2290 %24 %24 %24 %24
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