The assessment of amount of the allowance for doubtful accounts receivables. Given information: Data for Y2 Sales for the Y2 are $370, 00,000. Total receivables for Y2 are $67,000,000. In 0-30 days ageing category receivables are $15,000,000 with uncollectible 4%. In 31-60 days ageing category receivables are $27,000,000 with uncollectible 10%. In 61-90 days ageing category receivables are $10,000,000 with uncollectible 30%. In 91-120 days ageing category receivables are $5,000,000 with uncollectible 40%. In Over 120 days ageing category receivables are $10,000,000 with uncollectible 80%. Data for Y1 Sales for the Y2 are $420, 00,000. Total receivables for Y1 are $48,000,000. In 0-30 days ageing category receivables are $30,000,000 with uncollectible 1%. In 31-60 days ageing category receivables are $8,000,000 with uncollectible 7.5%. In 61-90 days ageing category receivables are $4,000,000 with uncollectible 20%. In 91-120 days ageing category receivables are $2,000,000 with uncollectible 40%. In Over 120 days ageing category receivables are $4,000,000 with uncollectible 45%.

Question

Why do companies make adjusting entries? When are adjusting entries made and at what point in the accounting process?

Answer 1

Question

Chapter 9, Problem 2JC

To determine

The assessment of amount of the allowance for doubtful accounts receivables.

Given information:

Data for Y2

Sales for the Y2 are $370, 00,000.

Total receivables for Y2 are $67,000,000.

In 0-30 days ageing category receivables are $15,000,000 with uncollectible 4%.

In 31-60 days ageing category receivables are $27,000,000 with uncollectible 10%.

In 61-90 days ageing category receivables are $10,000,000 with uncollectible 30%.

In 91-120 days ageing category receivables are $5,000,000 with uncollectible 40%.

In Over 120 days ageing category receivables are $10,000,000 with uncollectible 80%.

Data for Y1

Sales for the Y2 are $420, 00,000.

Total receivables for Y1 are $48,000,000.

In 0-30 days ageing category receivables are $30,000,000 with uncollectible 1%.

In 31-60 days ageing category receivables are $8,000,000 with uncollectible 7.5%.

In 61-90 days ageing category receivables are $4,000,000 with uncollectible 20%.

In 91-120 days ageing category receivables are $2,000,000 with uncollectible 40%.

In Over 120 days ageing category receivables are $4,000,000 with uncollectible 45%.

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Answer 2

Question

Chapter 9, Problem 2JC

To determine

The assessment of amount of the allowance for doubtful accounts receivables.

Given information:

Data for Y2

Sales for the Y2 are $370, 00,000.

Total receivables for Y2 are $67,000,000.

In 0-30 days ageing category receivables are $15,000,000 with uncollectible 4%.

In 31-60 days ageing category receivables are $27,000,000 with uncollectible 10%.

In 61-90 days ageing category receivables are $10,000,000 with uncollectible 30%.

In 91-120 days ageing category receivables are $5,000,000 with uncollectible 40%.

In Over 120 days ageing category receivables are $10,000,000 with uncollectible 80%.

Data for Y1

Sales for the Y2 are $420, 00,000.

Total receivables for Y1 are $48,000,000.

In 0-30 days ageing category receivables are $30,000,000 with uncollectible 1%.

In 31-60 days ageing category receivables are $8,000,000 with uncollectible 7.5%.

In 61-90 days ageing category receivables are $4,000,000 with uncollectible 20%.

In 91-120 days ageing category receivables are $2,000,000 with uncollectible 40%.

In Over 120 days ageing category receivables are $4,000,000 with uncollectible 45%.

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Answer 3

Question

Chapter 9, Problem 2JC

To determine

The assessment of amount of the allowance for doubtful accounts receivables.

Given information:

Data for Y2

Sales for the Y2 are $370, 00,000.

Total receivables for Y2 are $67,000,000.

In 0-30 days ageing category receivables are $15,000,000 with uncollectible 4%.

In 31-60 days ageing category receivables are $27,000,000 with uncollectible 10%.

In 61-90 days ageing category receivables are $10,000,000 with uncollectible 30%.

In 91-120 days ageing category receivables are $5,000,000 with uncollectible 40%.

In Over 120 days ageing category receivables are $10,000,000 with uncollectible 80%.

Data for Y1

Sales for the Y2 are $420, 00,000.

Total receivables for Y1 are $48,000,000.

In 0-30 days ageing category receivables are $30,000,000 with uncollectible 1%.

In 31-60 days ageing category receivables are $8,000,000 with uncollectible 7.5%.

In 61-90 days ageing category receivables are $4,000,000 with uncollectible 20%.

In 91-120 days ageing category receivables are $2,000,000 with uncollectible 40%.

In Over 120 days ageing category receivables are $4,000,000 with uncollectible 45%.

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Answer 4

Question

Chapter 9, Problem 2JC

To determine

The assessment of amount of the allowance for doubtful accounts receivables.

Given information:

Data for Y2

Sales for the Y2 are $370, 00,000.

Total receivables for Y2 are $67,000,000.

In 0-30 days ageing category receivables are $15,000,000 with uncollectible 4%.

In 31-60 days ageing category receivables are $27,000,000 with uncollectible 10%.

In 61-90 days ageing category receivables are $10,000,000 with uncollectible 30%.

In 91-120 days ageing category receivables are $5,000,000 with uncollectible 40%.

In Over 120 days ageing category receivables are $10,000,000 with uncollectible 80%.

Data for Y1

Sales for the Y2 are $420, 00,000.

Total receivables for Y1 are $48,000,000.

In 0-30 days ageing category receivables are $30,000,000 with uncollectible 1%.

In 31-60 days ageing category receivables are $8,000,000 with uncollectible 7.5%.

In 61-90 days ageing category receivables are $4,000,000 with uncollectible 20%.

In 91-120 days ageing category receivables are $2,000,000 with uncollectible 40%.

In Over 120 days ageing category receivables are $4,000,000 with uncollectible 45%.

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Answer 5

Chapter 9, Problem 2JC

To determine

The assessment of amount of the allowance for doubtful accounts receivables.

Given information:

Data for Y2

Sales for the Y2 are $370, 00,000.

Total receivables for Y2 are $67,000,000.

In 0-30 days ageing category receivables are $15,000,000 with uncollectible 4%.

In 31-60 days ageing category receivables are $27,000,000 with uncollectible 10%.

In 61-90 days ageing category receivables are $10,000,000 with uncollectible 30%.

In 91-120 days ageing category receivables are $5,000,000 with uncollectible 40%.

In Over 120 days ageing category receivables are $10,000,000 with uncollectible 80%.

Data for Y1

Sales for the Y2 are $420, 00,000.

Total receivables for Y1 are $48,000,000.

In 0-30 days ageing category receivables are $30,000,000 with uncollectible 1%.

In 31-60 days ageing category receivables are $8,000,000 with uncollectible 7.5%.

In 61-90 days ageing category receivables are $4,000,000 with uncollectible 20%.

In 91-120 days ageing category receivables are $2,000,000 with uncollectible 40%.

In Over 120 days ageing category receivables are $4,000,000 with uncollectible 45%.

Answer 6

Chapter 9, Problem 2JC

To determine

The assessment of amount of the allowance for doubtful accounts receivables.

Given information:

Data for Y2

Sales for the Y2 are $370, 00,000.

Total receivables for Y2 are $67,000,000.

In 0-30 days ageing category receivables are $15,000,000 with uncollectible 4%.

In 31-60 days ageing category receivables are $27,000,000 with uncollectible 10%.

In 61-90 days ageing category receivables are $10,000,000 with uncollectible 30%.

In 91-120 days ageing category receivables are $5,000,000 with uncollectible 40%.

In Over 120 days ageing category receivables are $10,000,000 with uncollectible 80%.

Data for Y1

Sales for the Y2 are $420, 00,000.

Total receivables for Y1 are $48,000,000.

In 0-30 days ageing category receivables are $30,000,000 with uncollectible 1%.

In 31-60 days ageing category receivables are $8,000,000 with uncollectible 7.5%.

In 61-90 days ageing category receivables are $4,000,000 with uncollectible 20%.

In 91-120 days ageing category receivables are $2,000,000 with uncollectible 40%.

In Over 120 days ageing category receivables are $4,000,000 with uncollectible 45%.

Answer 7

Chapter 9, Problem 2JC

To determine

The assessment of amount of the allowance for doubtful accounts receivables.

Given information:

Data for Y2

Sales for the Y2 are $370, 00,000.

Total receivables for Y2 are $67,000,000.

In 0-30 days ageing category receivables are $15,000,000 with uncollectible 4%.

In 31-60 days ageing category receivables are $27,000,000 with uncollectible 10%.

In 61-90 days ageing category receivables are $10,000,000 with uncollectible 30%.

In 91-120 days ageing category receivables are $5,000,000 with uncollectible 40%.

In Over 120 days ageing category receivables are $10,000,000 with uncollectible 80%.

Data for Y1

Sales for the Y2 are $420, 00,000.

Total receivables for Y1 are $48,000,000.

In 0-30 days ageing category receivables are $30,000,000 with uncollectible 1%.

In 31-60 days ageing category receivables are $8,000,000 with uncollectible 7.5%.

In 61-90 days ageing category receivables are $4,000,000 with uncollectible 20%.

In 91-120 days ageing category receivables are $2,000,000 with uncollectible 40%.

In Over 120 days ageing category receivables are $4,000,000 with uncollectible 45%.

Answer 8

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Answer 19

Ch. 9 - Prob. 9.1Q Ch. 9 - Do companies always classify cash as a current...Ch. 9 - Prob. 9.3Q Ch. 9 - Do accountants typically measure accounts...Ch. 9 - Under the allowance method, will the actual...Ch. 9 - How does an entity record a subsequent recovery of...Ch. 9 - Does the aging of accounts receivable method of...Ch. 9 - Prob. 9.8Q Ch. 9 - What is the difference between pledging accounts...Ch. 9 - How do companies account for receivables that are...

Solution Summary: The author explains the allowance for doubtful accounts receivables, which is set aside for the bad debts expense expected to incur on account of sales made during the year.

Chapter 9 Solutions