FINANCIAL & MANAGERIAL ACCOUNTING (ACCES
9th Edition
ISBN: 9781265484040
Author: Wild
Publisher: MCG
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Chapter 7, Problem 10QS
1.
To determine
Concept Introduction: Aging of
The allowance for a doubtful account using aging of accounts receivable.
2.
To determine
Concept Introduction: Aging of accounts receivable estimates uncollectible assuming that the longer a receivable is due, the chances of it becoming uncollectible are higher. Under this, each receivable is classified by how long it is due from the date of sales.
The
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Subject: accounting
a. Estimate the balance of the 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 $3,600 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 $100 debit.
I need the unadjusted credit balance of the allowance account and adjustment.
Chapter 7 Solutions
FINANCIAL & MANAGERIAL ACCOUNTING (ACCES
Ch. 7 - Prob. 1QSCh. 7 - Prob. 2QSCh. 7 - Prob. 3QSCh. 7 - QS 7-4 Distinguishing between allowance method and...Ch. 7 - Prob. 5QSCh. 7 - Prob. 6QSCh. 7 - Prob. 7QSCh. 7 - Prob. 8QSCh. 7 - Prob. 9QSCh. 7 - Prob. 10QS
Ch. 7 - Prob. 11QSCh. 7 - Prob. 12QSCh. 7 - Prob. 13QSCh. 7 - Prob. 14QSCh. 7 - Prob. 15QSCh. 7 - Prob. 16QSCh. 7 - Prob. 17QSCh. 7 - Prob. 18QSCh. 7 - Prob. 19QSCh. 7 - Prob. 20QSCh. 7 - Prob. 21QSCh. 7 - Prob. 1ECh. 7 - Prob. 2ECh. 7 - Prob. 3ECh. 7 - Prob. 4ECh. 7 - Prob. 5ECh. 7 - Prob. 6ECh. 7 - Prob. 7ECh. 7 - Prob. 8ECh. 7 - Prob. 9ECh. 7 - Prob. 10ECh. 7 - Prob. 11ECh. 7 - Prob. 12ECh. 7 - Prob. 13ECh. 7 - Prob. 14ECh. 7 - Prob. 15ECh. 7 - Prob. 16ECh. 7 - Prob. 17ECh. 7 - Prob. 18ECh. 7 - Prob. 19ECh. 7 - Prob. 20ECh. 7 - Prob. 21ECh. 7 - Prob. 22ECh. 7 - Prob. 23ECh. 7 - Prob. 1PSACh. 7 - Prob. 2PSACh. 7 - Prob. 3PSACh. 7 - Prob. 4PSACh. 7 - Prob. 5PSACh. 7 - Prob. 1PSBCh. 7 - Prob. 2PSBCh. 7 - Prob. 3PSBCh. 7 - Prob. 4PSBCh. 7 - Prob. 5PSBCh. 7 - Prob. 7SPCh. 7 - Prob. 1.1AACh. 7 - Prob. 1.2AACh. 7 - Prob. 1.3AACh. 7 - Prob. 1.4AACh. 7 - Prob. 2.1AACh. 7 - Prob. 2.2AACh. 7 - Prob. 3.1AACh. 7 - Prob. 3.2AACh. 7 - Prob. 1DQCh. 7 - Prob. 2DQCh. 7 - Prob. 3DQCh. 7 - Prob. 4DQCh. 7 - Prob. 5DQCh. 7 - Prob. 6DQCh. 7 - Anton Blair is the manager of a medium-size...Ch. 7 - Prob. 2BTNCh. 7 - Prob. 3BTNCh. 7 - Prob. 4BTNCh. 7 - Prob. 5BTN
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- To record estimated uncollectible accounts using the allowance method, the adjusting entry would be a ?arrow_forwardPlease avoid solutions in image thanksarrow_forwardAn aging of a company's accounts receivable indicates the estimate of uncollectible receivables totals $5,249. If Allowance for Doubtful Accounts has a $1,383 credit balance, the adjustment to record the bad debt expense for the period will require a Oa. debit to Bad Debt Expense for $3,866. Ob. credit to Allowance for Doubtful Accounts for $5,249. Oc. debit to Bad Debt Expense for $1.383. Od. debit to Bad Debt Expense for $5,249. Dasarrow_forward
- An aging of a company's accounts receivable indicates that estimate of the uncollectible accounts totals $4,145. If Allowance for Doubtful Accounts has a $1,241 credit balance, the adjustment to record the bad debt expense for the period will require a Select the correct answer. a-credit to Allowance for Doubtful for $4,145. b-debit to Bad Debt Expense for $2,904. c-debit to Allowance for Doubtful Accounts for $2,904. d-debit to Allowance for Doubtful Accounts for $4,145arrow_forwardDetermine the amount to be added to Allowance for Doubtful Accounts in each of the following cases and indicate the ending balance in each case. a. Credit balance of $310 in Allowance for Doubtful Accounts just prior to adjustment. Using the aging method, the balance of Allowance for Doubtful Accounts is estimated as $8,520. Amount added $4 Ending balance b. Credit balance of $310 in Allowance for Doubtful Accounts just prior to adjustment. Bad debt expense is estimated at 3% of credit sales, which totaled $1,028,000 for the year. Amount added Ending balance %24 %24 %24 %24arrow_forwardWhich of the following statements is true regarding aging accounts receivable? Multiple Choice The aging method of estimating uncollectible accounts is based on the assumption that the longer an account receivable remains outstanding, the less likely it is to be collected. All of the statements are true. The aging of accounts receivable involves applying lower uncollectible percentage estimates to older receivables. An aging schedule is used to improve the estimate used in the percent of revenue method of determining the uncollectible accounts expense.arrow_forward
- Which of the following statements is true regarding the two allowance procedures used to estimate bad debts? Oa. The percentage of net credit sales method takes into account the existing balance in the Allowance for Doubtful Accounts account. Ob. The aging of accounts receivable method takes into account the existing balance in the Allowance for Doubtful Accounis account. Oc, The direct write-off method does a better job of matching revenues and expenses. Od. The direct write-off method takes into account the existing balance in the Allowance for Doubtful Accounts account.arrow_forwardDetermine the amount to be added to Allowance for Doubtful Accounts in each of the following cases and indicate the ending balance in each case. a. Credit balance of $300 in Allowance for Doubtful Accounts just prior to adjustment. Analysis of accounts receivable indicates uncollectible receivables of $8,500. Amount added $ Ending balance $ b. Credit balance of $500 in Allowance for Doubtful Accounts just prior to adjustment. Uncollectible receivables are estimated at 2% of credit sales, which totaled $1,000,000 for the year. Amount added $ Ending balance $arrow_forwardQuestion 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…arrow_forward
- Compare Two Methods of Accounting for Uncollectible Receivables been obtained from the accounts: Required: Assemble the desired data. Enter a decrease in the amount of expense as a negative number and all other amounts as positive numbers. Call Systems Company Bad Debt Expensearrow_forwardEstimating Allowance for Doubtful Accounts Kirchhoff Industries has a past history of uncollectible accounts, as shown below. Age Class Not past due 1-30 days past due 31-60 days past due 61-90 days past due Over 90 days past due Customer Subtotals Conover Industries Keystone Company Moxie Creek Inc. Rainbow Company Swanson Company Total receivables Estimate the allowance for doubtful accounts, based on the aging of receivables schedule below. Kirchhoff Industries Aging of Receivables Schedule Percentage uncollectible Percent Uncollectible Allowance for Doubtful Accounts 2% 6 20 Balance 30 45 Not Past 1-30 Days 31-60 Days 61-90 Days Over 90 Days Due Past Due Past Due 798,900 471,400 175,800 Past Due Past Due 71,900 17,900 20,700 6,700 9,500 26,300 26,300 880,000 497,700 185,300 2% 6% 9,500 6,700 78,600 20% 39,900 20,700 60,600 30% 39,900 17,900 57,800 45%arrow_forwardBackground imformation: The Lake Lucerne Company uses the allowance method of estimating bad debts expense. An aging schedule is prepared in order to calculate the balance in the allowance account. The percentage uncollectible is calculated as followed: 1-30 days= 1.5% 31-60 days= 3.5% 61-90 days= 12% 91-365 days= 70% Calculate the number of days each receivable is outstanding and Complete the Schedule of Accounts Receivable. Both are showed in the images attached for context and data. Make sure to show all work and formulas.arrow_forward
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