The following information pertains to Lightning Inc., at the end of December: Credit Sales $20,000 10,000 13,900 Accounts Payable Accounts Receivable Allowance for Uncollectible Accounts 400 credit Cash Sales 20,000 Lightning uses the aging method and estimates it will not collect 7% of accounts receivable not yet due, 17% of receivables up to 30 days past due, and 45% of receivables greater than 30 days past due. The accounts receivable balance of $13,900 consists of $9,500 not yet due, $2,400 up to 30 days past due, and $2,000 greater than 30 days past due. What is the appropriate amount of Bad Debt Expense?

The following information pertains to Lightning Inc., at the end of December: Credit Sales $20,000 10,000 13,900 Accounts Payable Accounts Receivable Allowance for Uncollectible Accounts 400 credit Cash Sales 20,000 Lightning uses the aging method and estimates it will not collect 7% of accounts receivable not yet due, 17% of receivables up to 30 days past due, and 45% of receivables greater than 30 days past due. The accounts receivable balance of $13,900 consists of $9,500 not yet due, $2,400 up to 30 days past due, and $2,000 greater than 30 days past due. What is the appropriate amount of Bad Debt Expense?

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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Required information [The following information applies to the questions displayed below.] At December 31, Hawke Company reports the following results for its calendar year. Cash sales $ 640,000 Credit sales $ 1,600,000 In addition, its unadjusted trial balance includes the following items. Accounts receivable Allowance for doubtful accounts $ 480,000 debit $ 5,800 debit 3. An aging analysis estimates that 6% of year-end accounts receivable are uncollectible. Show how Accounts Receivable and the Allowance for Doubtful Accounts appear on its December 31 balance sheet. Current assets:
Harvest Company has the following December 31 General Ledger Account Balances after adjustments relating to Sales and Receivables: Sales $16,500 (of which 40% are credit sales still outstanding)Sales returns and Allowances $1,000Miscellaneous Receivables $1,212Allowance for Doubtful Accounts $1,502Long-term Receivables $9,014Advances to Shareholders and Directors $3,738 Notes Receivables $2,903 (Current Portion)Bad Debt Expense is estimated as 4% of credit sales. Required 1: Assuming no other transaction happened, what is the Bad Debt Expense reported on December 31st? Required 2: Assuming no other transaction happened, what is the adjusted net balance of all current Receivables at December 31st? Required 3: Assuming no other transaction happened, what is the adjusted net balance of Accounts Receivables at December 31st?
Accounting At the end of January, $4,800 of accounts receivable are past due, and the company estimates that 50% of these accounts will not be collected. Of the remaining accounts receivable, the company estimates that 3% will not be collected. No accounts were written off as uncollectible in January. date account title jan 31 bad debt expense allowance for uncollectible accounts debit credit
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The following information applies to the questions displayed below.] At December 31, Hawke Company reports the following results for its calendar year. Cash sales $ 320,000 Credit sales $ 800,000 In addition, its unadjusted trial balance includes the following items. Accounts receivable $ 432,000 debit Allowance for doubtful accounts $ 4,300 debit 3. An aging analysis estimates that 5% of year-end accounts receivable are uncollectible. Show how Accounts Receivable and the Allowance for Doubtful Accounts appear on its December 31 balance sheet.
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Providing for Doubtful Accounts At the end of the current year, the accounts receivable account has a debit balance of $1,058,000 and sales for the year total $12,000,000. The allowance account before adjustment has a debit balance of $14,300. Bad debt expense is estimated at 1/4 of 1% of sales. The allowance account before adjustment has a debit balance of $14,300. An aging of the accounts in the customer ledger indicates estimated doubtful accounts of $45,800. The allowance account before adjustment has a credit balance of $9,200. Bad debt expense is estimated at 1/2 of 1% of sales. The allowance account before adjustment has a credit balance of $9,200. An aging of the accounts in the customer ledger indicates estimated doubtful accounts of $76,400. Determine the amount of the adjusting entry to provide for doubtful accounts under each of the assumptions (a through d) listed above.
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CVM Company had a total accounts receivable of 250,000 at December 31, 20x1. An aging analysis of the accounts receivable and an estimate of possible credit losses are as follows: Classification Balance % Credit loss 1-60 days 175,000 1% 61-120 days ? 2% 121-180 days Over 180 days C. What is the net realizable value of the Accounts 25,000 10% 25,000 50% receivable at December 31 20x1? P92,500 P237, 750 O P233,250 O P232,750
Answer
Harvest Company has the following December 31 General Ledger Account Balances after adjustments relating to Sales and Receivables: Sales $34,000 (of which 40% are credit sales still outstanding) Sales returns and Allowances $1,000 Miscellaneous Receivables $1,212 Allowance for Doubtful Accounts $1,502 Long term Receivables $9,014 Advances to Shareholders and Directors $4,508 Notes Receivables $2,903 (Current Portion) Bad Debt Expense is estimated as 4% of credit sales Required 1: Assuming no other transaction happened, what is the Bad Debt Expense reported on December 31st? $ 544 Required 2: Assuming no other transaction happened, what is the adjusted net balance of all current Receivables at December 31st? $ 14812 Required 3: Assuming no other transaction happened, what is the adjusted net balance of Accounts Receivables at December 31st? $ 23826