FUND ACCOUNTING PRINCIPLES CONNECT
25th Edition
ISBN: 9781265342395
Author: Wild
Publisher: MCG
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Chapter 9, Problem 3PSA
Problem 9-3A Aging
On December 31, Jarden Co.'s Allowance for Doubtful Accounts has an unadjusted credit balance of S 14,500. Jarden prepares a schedule of its December 31 accounts receivable by age.
| » | B | _E_ | |
| 1 | Accounts | Age of | Expected Percent |
| 2 | Receivable | Accounts Receivable | Uncollectible |
| 3 | J830,000 | Not yet due | 1.25% |
| 254,000 | 1 to 30 days past due | 2.00 | |
| : | 86,000 | 31 to 60 days past due | 6.50 |
| 6 | 38,000 | 61 to 90 days past due | 32.75 |
| 7 | 12,000 | Over 90 days past due | 68.00 |
Required
1. Compute the required balance of the Allowance for Doubtful Accounts at December 31 using an aging of accounts receivable.
2. Prepare the adjusting entry1 to record bad debts expense at December 31. Check (2) Dr. Bad Debts Expense, $27,150
Analysis Component 3. On June 30 of the next year, Jarden concludes that a customer's $4,750 receivable is uncollectible and the account is written off. Does this write-off directly affect Jarden's net income?
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Problem 17
The Southbreeze Hotel uses the aging of accounts receivable method of estimating bad
debts. As of December 31, 20X3, the summarized aging schedule and expected loss
percentages are as follows:
Aging of Accounts Receivable
Current
0-30
31-60
61-90
Over 90
Amount
$18,000
$2,200
$1,800
$1,000
$750
Loss % expected
10%
30%
1%
2%
4%
Required:
1. Assuming a zero balance in the allowance account, make the necessary journal entry
on December 31, 20X3.
2. Assuming a $150 debit balance in the allowance account, make the necessary journal
entry on December 31, 20X3.
Chapters 8-9-10-11 & Ratios i
Help
Saved
1 to 30
$ 96,000
Total
31 to 60
61 to 90
Over 90
$ 600,000
$ 402,000
$ 42,000
$ 24,000
$ 36,000
Accounts receivable
Percent uncollectible
18
28
5%
78
108
a. Complete the table below to calculate the estimated balance of 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 $4,200 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 $700 debit.
Complete this question by entering your answers in the tabs below.
Reg A
Reg B and C
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 $4,200 credit.
c. Prepare the adjusting entry to record bad…
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Chapter 9 Solutions
FUND ACCOUNTING PRINCIPLES CONNECT
Ch. 9 - Credit card sales Prepare journal entries for the...Ch. 9 - Direct write-off method P1 Solstice Company...Ch. 9 - Recovering a bad debt P1 Solstice Company...Ch. 9 - Distinguishing between allowance method and direct...Ch. 9 - Prob. 5QSCh. 9 - Allowance method for bad debts P2 Gomez Corp. uses...Ch. 9 - Reporting allowance for doubtful accounts P2 On...Ch. 9 - Prob. 8QSCh. 9 - Prob. 9QSCh. 9 - Aging of receivables method P3 ^ Net Zero...
Ch. 9 - Prob. 11QSCh. 9 - Prob. 12QSCh. 9 - Prob. 13QSCh. 9 - Prob. 14QSCh. 9 - Prob. 15QSCh. 9 - Prob. 16QSCh. 9 - Prob. 17QSCh. 9 - Prob. 18QSCh. 9 - Prob. 19QSCh. 9 - Prob. 20QSCh. 9 - Prob. 21QSCh. 9 - Exercise 9-1
Accounts receivable subsidiary...Ch. 9 - Prob. 2ECh. 9 - Exercise 9-3
Sales on store credit card
C1
Z-Mart...Ch. 9 - Exercise 9-4
Direct write-off method
Dexter...Ch. 9 - Exercise 9-5 Writing off receivables P2
On January...Ch. 9 - Exercise 9-6 Percent of sales method; write-off...Ch. 9 - Exercise 9-7 Percent of accounts receivable...Ch. 9 - Exercise 9-8 Aging of receivables method P3
Daley...Ch. 9 - Exercise 9-9 Percent of receivables method...Ch. 9 - Exercise 9-10 Aging of receivables schedule...Ch. 9 - Exercise 9-10
Estimating bad debts
P3
At December...Ch. 9 - Exercise 9-11
Notes receivable...Ch. 9 - Exercise 9-12
Notes receivable transactions...Ch. 9 - Exercise 9-14 Honoring a note P4
Prepare journal...Ch. 9 - Exercise 9-15 Dishonoring a note P4
Prepare...Ch. 9 - Exercise 9-16 Selling and pledging accounts...Ch. 9 - Exercise 9-17 Accounts receivable turnover A1 Q...Ch. 9 - Prob. 18ECh. 9 - Prob. 19ECh. 9 - Prob. 20ECh. 9 - Prob. 21ECh. 9 - Prob. 22ECh. 9 - Prob. 23ECh. 9 - Problem 9-1A Sales on account and credit card...Ch. 9 - Problem 9-2A Estimating and reporting bad debts P2...Ch. 9 - Problem 9-3A Aging accounts receivable and...Ch. 9 - Problem 9-4A Accounts receivable transactions and...Ch. 9 - Problem 9-5A Analyzing and journalizing notes...Ch. 9 - Problem 9-1B Sales on account and credit card...Ch. 9 - Problem 9-2B Estimating and reporting bad debts P2...Ch. 9 - Problem 9-3B Aging accounts receivable and...Ch. 9 - Problem 9-4B Accounts receivable transactions and...Ch. 9 - Prob. 5PSBCh. 9 - SP 9 Santana Rey: owner of Business Solutions,...Ch. 9 - Prob. 1GLPCh. 9 - Prob. 1AACh. 9 - Prob. 2AACh. 9 - Prob. 3AACh. 9 - Prob. 1DQCh. 9 - Why does the direct write-off method of accounting...Ch. 9 - Prob. 3DQCh. 9 - Why might a business prefer a note receivable to...Ch. 9 - Prob. 5DQCh. 9 - Prob. 6DQCh. 9 - Anton Blair is the manager of a medium-size...Ch. 9 - Prob. 2BTNCh. 9 - Prob. 3BTNCh. 9 - Prob. 4BTNCh. 9 - Prob. 5BTN
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