The schedule of aging accounts for a Cormpany at the end of the year 2020, appears belowAccounts Recebvable$40,00010,0005,5001.8005Z.300Estimate % of Bad DettsCurrent1:30 days overdue31-60 days overdueMore than 60 days overdueTotal1%5%10%20%The allowance was estimated by using the schedule of ageing accounts. The allowance acoount had a debit balance of $000, before the estimate was madeRequired: Prepare the adjusting entry to record bad debts expense for 2020.(SHOW YOUR CALCULATIONS)ALTAENAEI0/Mari

The allowance for doubtful accounts is created to record estimated bad debt expense for the period.

The schedule of aging accounts for a Company at the end of the year 2020, appears below Accounts Becetvable $40,000 10,000 5,500 1.000 S7.300 Estimate of Bad Detta 1% Current 1-30 days overdue 31-60 days overdue More than 60 days overdue Total 5% 10% 20% The allowance was estimated by using the schedule of ageing accounts. The allowance account had a debit balance of $000, before the estimate was made Cequired: Prepare the adjusting entry to record bad debts expense for 2020. SHOW YOUR CALCULATIONS)

The schedule of aging accounts for a Company at the end of the year 2020, appears below Accounts Becetvable $40,000 10,000 5,500 1.000 S7.300 Estimate of Bad Detta 1% Current 1-30 days overdue 31-60 days overdue More than 60 days overdue Total 5% 10% 20% The allowance was estimated by using the schedule of ageing accounts. The allowance account had a debit balance of $000, before the estimate was made Cequired: Prepare the adjusting entry to record bad debts expense for 2020. SHOW YOUR CALCULATIONS)

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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Analysis of Receivables Method At the end of the current year, Accounts Receivable has a balance of $950,000, Allowance for Doubtful Accounts has a credit balance of $8,500, and sales for the year total $4,280,000. Using the aging method, the balance of Allowance for Doubtful Accounts is estimated as $29,800. a. Determine the amount of the adjusting entry for uncollectible accounts. b. Determine the adjusted balances of Accounts Receivable, Allowance for Doubtful Accounts, and Bad Debt Expense. Accounts Receivable Allowance for Doubtful Accounts Bad Debt Expense c. Determine the net realizable value of accounts receivable.
d) Golden Music Company uses the allowance method to estimate uncollectible accounts receivable. An aging of the accounts receivable revealed the following: Estimated Percentage Uncollectible Current Accounts $17,000 $1,500 $1,200 $500 $900 $21,100 1% 1-30 days past due 31–60 days past due 61–90 days past due Over 90 days past due Total Accounts Receivable 3% 6% 12% 25% On 31 December 2021, the company has found out that a customer went bankrupt and management agreed that the accounts receivable of $900 included above which is past due for over 90 days can be written off. i) Compute the total estimated uncollectible accounts receivable as at 31 December 2021. ii) Prepare the journal entry year-end to write off the accounts receivable of $900 and the adjusting journal entry to record the bad debts for the year ended 31 December 2021.
Complete the aging schedule. Number of Days Accounts Outstanding Receivable Estimated % Uncollectible 0-45 days $ $734,000 2% 46-90 days 265,000 5% Over 90 days 106,000 15% Total $1,105,000 +A $ Total Estimated Uncollectible Acco
A year-end review of Accounts Receivable and estimated uncollectible percentages revealed the following: 1-30 days $120,000 1% 31-60 days $80,000 3% 61-90 days $20,000 8% Over 90 days $8,000 40% The Allowance for Uncollectible Accounts had a credit balance before adjustment of $2,000. Under the aging-of-receivables method, the uncollectible-account expense for the year is:
Haresh
At the end of the year, a company reports a balance in its Allowance for Uncollectible Accounts of $2,000 (credit) before any year-end adjustment. The company estimates future uncollectible accounts to be 2% of credit sales for the year. Credit sales for the year total $282,000. Record the adjustment for the allowance for uncollectible accounts using the percentage-of-credit-sales method on a balance sheet.
The following information is available for Monty's Best Corporation about the age of its receivables at December 31, its year end: Number of days outstanding Accounts Receivable Estimated percentage uncollectible (a) 0-30 $410,000 3% Total Estimated Uncollectible Accounts $ tA 31-60 $250,000 5% 61-90 $210,000 10% Over 90 $90,000 Using the above aging schedule, determine the total estimated uncollectible accounts. 15%
Pharoah Ltd. prepared an aging of its accounts receivable at December 31, 2023 and determined that the net realizable value of the receivables was $324800. Additional information for calendar 2023 follows: Allowance for expected credit losses, beginning $38080 Uncollectible account written off during year 25760 Accounts receivable, ending 358400 Uncollectible accounts recovered during year 5600 For the year ended December 31, 2023, Pharoah's loss on impairment should be $20000. $15680. ○ $17920. $25760.
Calculate the allowance for doubtful accounts using the accounts receivable aging method using the following information: Beginning Allowance for Doubtful Accounts Balance: $5,000 Probability of Non-Collection 2% 4% 5% 10% 25% Age Group 0-30 days past due 31-60 days past due 61-120 days past duc 121-180 days past due Over 180 days past duc $13,100 $142,500 $5,050 $5,000 Balance $100,000 $20,000 $15,000 $2,500 $5,000
FDN Company reported Accounts Receivable of P10,000,000 on December 31, 2021. Allowance for Doubtful Accounts was P1,000,000 on January 1, 2021. The following information is provided pertaining to the company's aging analysis. Time outstanding Accounts receivable Percent uncollectible Under 90 days P7,200,000 5% 91 180 days 1,800,000 7% 181 360 days 1,000,000 50% How much should be reported as Allowance for Doubtful Accounts as of December 31, 2021?
Daley Company prepared the following aging of receivables analysis at December 31. Days Past Due 31 to 60 61 to 90 Over 90 $45,000 $27,000 $39,000 10% Accounts receivable Percent uncollectible Req A Req B and C a. Complete the below table to calculate the estimated balance of Allowance for Doubtful Accounts using aging of accounts receivable. b. Prepare the adjusting entry to record Bad Debts Expense using the estimate from part a. Assume the unadjusted balance in the Allowance for Doubtful Accounts is a $4,500 credit. Complete this question by entering your answers in the tabs below. Accounts Receivable c. Prepare the adjusting entry to record bad debts expense using the estimate from part a. Assume the unadjusted balance in the Allowance for Doubtful Accounts is a $1,000 debit. 0 Total $615,000 $405,000 X Not due: 1 to 30: 31 to 60: 61 to 90: Over 90: Estimated balance of allowance for uncollectibles X X Complete the below table to calculate the estimated balance of Allowance for…