year December 31, 2017, the company's Allowance for doubtful Accounts has a Zero balance. J&Co prepare a schedule of its December 31, 2017, account receivable by age. On the basis of past experience, it also estimate the percent of receivable in each age category that will become uncollectable. This information is summarized here: Analysis of balances Accounts Age of Receivable Not due (Under 30days) 1 to 30 days past due 31 to 60 days past due 61-90 days past due 90-120 days past due Over 120 days past due Total Amount % 399,600 2 287,800 10 180,000 15 6,000 20 10,000 40 16,600 100 OMR 900,000 Required. a. Compute the amount needed in the Allowance for Doubtful Accounts at December 31, 2017, using the aging of accounts receivable method. b. Prepare the journal entry to record bad debts expense at December 31, 2017. Show how accounts receivable would be presented on the

year December 31, 2017, the company's Allowance for doubtful Accounts has a Zero balance. J&Co prepare a schedule of its December 31, 2017, account receivable by age. On the basis of past experience, it also estimate the percent of receivable in each age category that will become uncollectable. This information is summarized here: Analysis of balances Accounts Age of Receivable Not due (Under 30days) 1 to 30 days past due 31 to 60 days past due 61-90 days past due 90-120 days past due Over 120 days past due Total Amount % 399,600 2 287,800 10 180,000 15 6,000 20 10,000 40 16,600 100 OMR 900,000 Required. a. Compute the amount needed in the Allowance for Doubtful Accounts at December 31, 2017, using the aging of accounts receivable method. b. Prepare the journal entry to record bad debts expense at December 31, 2017. Show how accounts receivable would be presented on the

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter6: Cash And Receivables

Section: Chapter Questions

Problem 12E: Inferring Accounts Receivable Amounts At the end of 2019, Karras Inc. had a debit balance of 141,120...

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Hardys Landscape Services total revenue on account for 2018 amounted to 273,205. The company, which uses the allowance method, estimates bad debts at percent of total revenue on account. Required Journalize the following selected entries: 2012 Dec. 12Record services performed on account for E. E. Morton, 245. 31Record the adjusting entry for Bad Debts Expense. 31Record the closing entry for Bad Debts Expense. 2013 Feb. 18Write off the account of E. E. Morton as uncollectible, 245. Check Figure Adjusting entry amount, 1,366.03
Inferring Accounts Receivable Amounts At the end of 2019, Karras Inc. had a debit balance of 141,120 in its accounts receivable. Additionally, Karras had a credit balance in its allowance for doubtful accounts of 4,350 and 9,420 at the beginning and end of the year, respectively. During the year, Karras made credit sales of 1,530,000, collected receivables in the amount of 1,445,700, and recorded bad debt expense of 83, 750. Required: Next Level Compute the amount of accounts receivable that Karras wrote off during the year and the amount of accounts receivable at the beginning of the year.
Rogan Companys total sales on account for the year amounted to 327,000. The company, which uses the allowance method, estimated bad debts at 1 percent of its credit sales. Required Journalize the following selected entries: 2017 Dec.31 Record the adjusting entry. 2018 Mar. 2Write off the account of A. M. Billson as uncollectible, 584. June 6Write off the account of W. H. Gilders as uncollectible, 492. Check Figure Adjusting entry amount, 3,270
Sprague Company uses the aging method to adjust the allowance for uncollectibleaccounts at the end of the period. At December 31, 2018, the balance of accounts receivable is$250,000 and the allowance for uncollectible accounts has a credit balance of $4,000 (beforeadjustment). An analysis of accounts receivable produced the following age groups:Current ...................................... $150,00060 days past due......................... 90,000Over 60 days past due................ 10,000$250,000Based on past experience, Sprague estimates that the percentage of accounts that will prove tobe uncollectible within the three age groups is 2% of the current balance, 8% of the 60 dayspast due balance, and 18% of the over 60 days past due balance. Based on these facts, theadjusting entry for uncollectible accounts should be made in the amount ofa. $8,000.b. $12,000.c. $17,000.d. $16,000.
A company reports the following amounts at the end of 2024 (before adjustment). Credit Sales for 2024 Accounts Receivable, December 31, 2024 Allowance for Uncollectible Accounts, December 31, 2024 Required: 1. Record the adjusting entry for uncollectible accounts using the percentage-of-receivables method. The company estimates 11% of receivables will not be collected. 2. Record the adjusting entry for uncollectible accounts using the percentage-of-credit-sales method. The company estimates 1% of credit sales will not be collected. 3. Calculate the effect on net income (before taxes) and total assets in 2024 for each method. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Record the adjusting entry for uncollectible accounts using the percentage-of-receivables method. The company estimates 11% of receivables will not be collected. (If no entry is required for a particular transaction/event, select "No Journal Entry Required" in the…
The following information is available for AVS-CVN Company: Credit sales during 2019 P 8,000,000 Accounts receivable deemed worthless and written off during 2019 180,000 Allowance for doubtful accounts at December 31, 2018 160,000 As a result of a review and aging of accounts receivable in early January 2020, however, it has been determined that an allowance for doubtful accounts of P110,000 is needed at December 31, 2019. What amount should AVS-CVN record as doubtful accounts expense for the year ended December 31, 2019? P130,000 c. P90,000 P110,000 d. P270,000
Edsel Inc. has the following unadjusted year end trial balance information available for 2018: Credit sales Ending accounts receivable balance. Ending allowance for uncollectibles Estimated uncollectibles Multiple Choice If Edsel uses the gross accounts receivable approach for estimating the bad debt provision, the allowance for uncollectibles account, afte accounts are recorded, should show a balance of. O $2,600 O $3,600 $600,000 $180,000 $1,500 O $5,600 2%
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Aguinaldo enterprises reported an allowance for doubtful accounts of P8,000(credit) at December 31, 2019, before any adjustment. At the end of the year, the company reports accounts receivable of P500,000, 3% of which is estimated to be uncollectible. The adjusting entry required at December 31, 2019 would be: debit to Doubtful Accounts Expense and credit Allowance for Doubtful Accounts amounting to P8,000 P15,000 P23,000 P7,000
At December 31, 2018, the Leni Inc. account balances before the year-end adjusting entries are the following, Accounts receivable- P50000 Allowance for uncollectible accounts P4500 According to aging of accounts receivable, P6250 of the December 31 receivables are expected to be uncollectible. How much is the net realizable value of accounts receivable after adjustment?
Winfrey Designs had an unadjusted credit balance in its Allowance for Doubtful Accounts at December 31, 2020, of $2,300. Required: a. Prepare the adjusting entry assuming that Winfrey estimates uncollectible accounts based on an aging analysis as follows. Expected December 31, 2020 Age of Accounts Percentage Uncollectible Accounts Receivable Receivable $155,000 45,000 Not due (under 30 days) 1% 1 to 30 days past due 31 to 68 days past due Over 60 days past due 4% 18,500 10% 2,500 60% View transaction list Journal entry worksheet Record the estimate for uncollectible accounts. Note: Enter debits before credits. Date General Journal Debit Credit December 31, 2020
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