Chapter 8, Problem 8.2BPR

(1)

To determine

Accounts receivable

Accounts receivable refers to the amounts to be received within a short period from customers upon the sale of goods and services on account. In other words, accounts receivable are amounts customers owe to the business. Accounts receivable is an asset of a business.

Due date:

Due date is the maturity date on note/account, on due date the borrower is supposed to pay the debt.

Past due:

Past due is the number of days of not receiving/making payment on the overdue account.

Analysis of receivables method:

A method of determining the estimated uncollectible receivables based on the age of individual accounts receivable is known as analysis of receivables method. This method is otherwise known as aging of receivables method. Under analysis of receivables method, estimated bad debts would be treated as the desired adjusted balance for allowance for doubtful accounts.

The number of days each account is past due as of December 31, 2015.

(2)

To determine

To complete: The aging of receivables schedule, by adding the omitted accounts to the bottom of the schedule and update the totals.

(3)

To determine

To prepare: An estimate for allowance for doubtful accounts, on the basis of aging of receivables schedule.

(4)

To determine

To Journalize: The adjusting entry for uncollectible accounts.

(5)

To determine

To identify: The effect on the balance sheet and income statement, if adjusting entry is omitted unintentionally.