Problem 17The Southbreeze Hotel uses the aging of accounts receivable method of estimating baddebts. As of December 31, 20X3, the summarized aging schedule and expected losspercentages are as follows:Aging of Accounts ReceivableCurrent0-3031-6061-90Over 90Amount$18,000$2,200$1,800$1,000$750Loss % expected10%30%1%2%4%Required:1. Assuming a zero balance in the allowance account, make the necessary journal entryon December 31, 20X3.2. Assuming a $150 debit balance in the allowance account, make the necessary journalentry on December 31, 20X3.

1. Computation of Year end allowance for estimated uncollectibles - ITI Age Balance %…

The Southbreeze Hotel uses the aging of accounts receivable method of estimating E debts. As of December 31, 20X3, the summarized aging schedule and expected l. percentages are as follows: Aging of Accounts Receivable Current 0-30 31-60 61-90 Over 90 $750 30% Amount $18,000 $2,200 $1,800 $1,000 Loss % expected 1% 2% 4% 10% Required:

The Southbreeze Hotel uses the aging of accounts receivable method of estimating E debts. As of December 31, 20X3, the summarized aging schedule and expected l. percentages are as follows: Aging of Accounts Receivable Current 0-30 31-60 61-90 Over 90 $750 30% Amount $18,000 $2,200 $1,800 $1,000 Loss % expected 1% 2% 4% 10% Required:

Financial Accounting Intro Concepts Meth/Uses

14th Edition

ISBN:9781285595047

Author:Weil

Publisher:Weil

Chapter8: Revenue Recognition, Receivables, And Advances From Customers

Section: Chapter Questions

Problem 23E

See similar textbooks

Related questions

Q: Wildhorse Company has accounts receivable of $101,200 at March 31, 2022. Credit terms are 2/10,…

A: Allowance for doubtful accounts is considered as a contra asset account. The bad debts expenses are…

Q: E6-2A. Credit Losses Based on Accounts Receivable Aging Hunter, Inc., analyzed its accounts receiv-…

A: “Since you have asked multiple question, we will solve the first question for you. If you want any…

Q: iodic Rate (as a %) Finance Charge (in $) Purchases and Cash Advances Payments and

A: Calculate APR as follows: APR = Monthly rate ×12 =114%×12=1.25%×12=15% Thus , APR id 15%

Q: Analysis of Receivables Method At the end of the current year, Accounts Receivable has a balance of…

A: Accounts receivable Accounts receivable refers to the amounts to be received within a short period…

Q: LaFond Company analyzes its accounts receivable at December 31, and arrives at the age categories…

A: Formula: Uncollectible amount = Receivables amount x loss percentage.

Q: Accounting for uncollectible accounts using the allowance method (aging-of-receivables) and…

A: Journal is a place where journal entries are recorded in the book keeping system before ledger…

Q: Analysis of Receivables Method At the end of the current year, Accounts Receivable has a balance of…

A: The objective of the question is to determine the adjusting entry for uncollectible accounts, the…

Q: Current Attempt in Progress Wildhorse Company has accounts receivable of $101,200 at March 31, 2022…

A: Bad debt expense is the amount of credit sales that are no longer collectible from customer during…

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

Problem 17
The Southbreeze Hotel uses the aging of accounts receivable method of estimating bad
debts. As of December 31, 20X3, the summarized aging schedule and expected loss
percentages are as follows:
Aging of Accounts Receivable
Current
0-30
31-60
61-90
Over 90
Amount
$18,000
$2,200
$1,800
$1,000
$750
Loss % expected
10%
30%
1%
2%
4%
Required:
1. Assuming a zero balance in the allowance account, make the necessary journal entry
on December 31, 20X3.
2. Assuming a $150 debit balance in the allowance account, make the necessary journal
entry on December 31, 20X3.

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

This is a popular solution!

SEE SOLUTION Check out a sample Q&A here

Step 1

VIEW

Step 2

VIEW

Trending now

This is a popular solution!

Step by step

Solved in 2 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.

Similar questions

Bad Debt Expense: Aging Method Glencoe Supply had the following accounts receivable aging schedule at the end of a recent year. The balance in Glencoes allowance for doubtful accounts at the beginning of the year was $58,620 (credit). During the year, accounts in the total amount of $62,400 were written off. Required: 1. Determine bad debt expense. 2. Prepare the journal entry to record bad debt expense. 3. If Glencoe had written off $90,000 of receivables as uncollectible during the year, how much would bad debt expense reported on the income statement have changed?
Aging Method Bad Debt Expense Cindy Bagnal, the manager of Cayce Printing Service, has provided the following aging schedule for Cayces accounts receivable Cindy indicates that the $121,100 of accounts receivable identified in the table does not include $4,600 of receivables that should be written off. Required: 1. Journalize the $4,600 write-off. 2. Determine the desired post adjustment balance in allowance for doubtful accounts (round each aging category to the nearest dollar). 3. If the balance in allowance for doubtful accounts before the $4,600 write-off was a debit of $700, compute bad debt expense. Prepare the adjusting entry to record bad debt expense.
Aging Method Bad Debt Expense Carol Simon, the manager of Handy Plumbing has provided the following aging schedule for Handys accounts receivable: Carol indicates that the $125,200 of accounts receivable identified in the table does not include $9,400 of receivables that should be written off. Required: 1. Journalize the $9,400 write-off. 2. Determine the desired post adjustment balance in allowance for doubtful accounts. 3. If the balance in allowance for doubtful accounts before the $9,400 write-off was a debit of $550, compute bad debt expense. Prepare the adjusting entry to record bad debt expense.
None
None
Hi expart Provide correct solution
Required information [The following information applies to the questions displayed below.] Daley Company prepared the following aging of receivables analysis at December 31. Days Past Due 31 to 60 $ 56,000 7% Accounts receivable Percent uncollectible Total 0 $ 670,000 $ 416,000 Req A Req B and C 3% Complete this question by entering your answers in the tabs below. 1 to 30 $ 110,000 a. Estimate the balance of the Allowance for Doubtful Accounts assuming the company uses 5% of total accounts receivable to estimate uncollectibles, instead of the aging of receivables method. 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 $14,000 credit. 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 $3,000 debit. Estimated balance of allowance for uncollectibles 4%
Question Content Area Estimating Allowance for Doubtful Accounts Kirchhoff Industries has a past history of uncollectible accounts, as shown below. Age Class PercentUncollectible Not past due 1% 1-30 days past due 5 31-60 days past due 25 61-90 days past due 35 Over 90 days past due 50 Estimate the allowance for doubtful accounts, based on the aging of receivables schedule below. Kirchhoff IndustriesAging of Receivables Scheduleblank Customer Balance Not PastDue 1-30 DaysPast Due 31-60 DaysPast Due 61-90 DaysPast Due Over 90 DaysPast Due Subtotals 840,000 495,600 184,800 75,600 42,000 42,000 Conover Industries 18,100 18,100 Keystone Company 18,200 18,200 Moxie Creek Inc. 6,600 6,600 Rainbow Company 10,000 10,000 Swanson Company 23,100 23,100 Total receivables 916,000 518,700 194,800 82,200 60,200 60,100 Percentage uncollectible 1% 5% 25% 35% 50% Allowance for Doubtful…
Subject: a
Required a + b and all individual parts
Subject: accounting
Estimating Doubtful Accounts Easy Rider International is a wholesaler of motorcycle supplies. An aging of the company's accounts receivable on December 31, 20Y3, and a historical analysis of the percentage of uncollectible accounts in each age category are as follows: Age Interval Balance PercentUncollectible Not past due $342,200 1 % 1–30 days past due 127,600 5 31–60 days past due 52,200 25 61–90 days past due 29,000 35 91–180 days past due 29,000 50 Over 180 days past due 19,200 70 $599,200 Estimate what the balance of the allowance for doubtful accounts should be as of December 31, 20Y3. Enter your answers as positive amounts. Age Interval EstimatedUncollectibleAmount Not past due $ 1-30 days past due 31-60 days past due 61-90 days past due 91-180 days past due Over 180 days past due Total $