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

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.] 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%
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