The company estimates future uncollectible accounts. The company determines $16,000 of accounts receivable on January 31 are past due, and 30% of these accounts are estimated to be uncollectible. The remaining accounts receivable on January 31 are not past due, and 4% of these accounts are estimated to be uncollectible. (Hint: Use the January 31 accounts receivable balance calculated in the general ledger.) Journal entry worksheet234>The company estimates future uncollectible accounts. The companydetermines $16,000 of accounts receivable on January 31 are past due, and30% of these accounts are estimated to be uncollectible. The remainingaccounts receivable on January 31 are not past due, and 4% of these accountsare estimated to be uncollectible. (Hint: Use the January 31 accountsNote: Enter debits before credits.DateGeneral JournalDebitCreditJanuary 31Bad Debt Expense1,348Allowance for Uncollectible Accounts1,348Record entryClear entryView general journal On January 1, Year 1, the general ledger of a company includes the following account balances:AccountsDebitCreditCashAccounts ReceivableAllowance for Uncollectible Accounts$ 25,60047,200$ 4,700InventoryLand20,50051,00017,500EquipmentAccumulated DepreciationAccounts PayableNotes Payable (6%, due April 1, Year 2)Common StockRetained Earnings2,00029,00055,00040,00031,100$161,800Totals$161,800During January Year 1, the following transactions occur:January 2 Sold gift cards totaling $9,000. The cards are redeemable for merchandise within one year of thepurchase date.January 6 Purchase additional inventory on account, $152,000.January 15 The comapany sales for the first half of the month total $140,000. All of these sales are onaccount. The cost of the units sold is $76,300.January 23 Receive $125,900 from customers on accounts receivable.January 25 Pay $95,000 to inventory suppliers on accounts payable.January 28 Write off accounts receivable as uncollectible, $5,300.January 30 The comapany sales for the second half of the month total $148,000. Sales include $10,000 for cashand $138,000 on account. The cost of the units sold is $82,000.January 31 Pay cash for monthly salaries, $52,500.

Adjsutments are those journal entries which are made at the end of the accounting period in order to…

The company estimates future uncollectible accounts. The company determines $16,000 of accounts receivable on January 31 are past due, and 30% of these accounts are estimated to be uncollectible. The remaining accounts receivable on January 31 are not past due, and 4% of these accounts are estimated to be uncollectible. (Hint: Use the January 31 accounts receivable balance calculated in the general ledger.)

The company estimates future uncollectible accounts. The company determines $16,000 of accounts receivable on January 31 are past due, and 30% of these accounts are estimated to be uncollectible. The remaining accounts receivable on January 31 are not past due, and 4% of these accounts are estimated to be uncollectible. (Hint: Use the January 31 accounts receivable balance calculated in the general ledger.)

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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Domino Company ages its accounts receivable to estimate uncollectible accounts expense. Domino began Year 2 with balances in Accounts Receivable and Allowance for Doubtful Accounts of $44,010 and $3,440, respectively. During Year 2, the company wrote off $2,620 in uncollectible accounts. In preparation for the company's estimate of uncollectible accounts expense for Year 2, Domino prepared the following aging schedule: Number of Days Past Due Current 0-30 31-60 61-90 Over 90 Total Multiple Choice $4,296 What amount will be reported as uncollectible accounts expense on the Year 2 income statement? $1,676 $2,620 Receivables Amount $70,000 $5,116 26,700 6,760 3,420 3,100 $ 109,980 % Likely to be Uncollectible 1% 5% 10% 25% 50%
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