The closing balance required in the allowance for uncollectible accounts at year-end. Given Information : Credit sale is $20,000,000. Closing accounts receivables $1,611,000. Unadjusted balance in allowance for uncollectible accounts is $94,800. Current accounts receivables are $366,500 with 5% uncollectible expectation. 1-30 days accounts receivables are $601,300 with 9% uncollectible expectation 31-60 days accounts receivables are $46,800 with 20% uncollectible expectation 61-90 days accounts receivables are $168,900 with 55% uncollectible expectation Over 90 days accounts receivables are $427,900 with 100% uncollectible expectation
The closing balance required in the allowance for uncollectible accounts at year-end. Given Information : Credit sale is $20,000,000. Closing accounts receivables $1,611,000. Unadjusted balance in allowance for uncollectible accounts is $94,800. Current accounts receivables are $366,500 with 5% uncollectible expectation. 1-30 days accounts receivables are $601,300 with 9% uncollectible expectation 31-60 days accounts receivables are $46,800 with 20% uncollectible expectation 61-90 days accounts receivables are $168,900 with 55% uncollectible expectation Over 90 days accounts receivables are $427,900 with 100% uncollectible expectation
Definition Definition Money that the business will be receiving from its clients who have utilized the credit provided to buy its goods and services. The credit period typically lasts for a short term, lasting from a few days, a few months, to a year.
Chapter 9, Problem 9.7P
a.
To determine
The closing balance required in the allowance for uncollectible accounts at year-end.
Given Information:
Credit sale is $20,000,000.
Closing accounts receivables $1,611,000.
Unadjusted balance in allowance for uncollectible accounts is $94,800.
Current accounts receivables are $366,500 with 5% uncollectible expectation.
1-30 days accounts receivables are $601,300 with 9% uncollectible expectation
31-60 days accounts receivables are $46,800 with 20% uncollectible expectation
61-90 days accounts receivables are $168,900 with 55% uncollectible expectation
Over 90 days accounts receivables are $427,900 with 100% uncollectible expectation
b.
To determine
To prepare: The journal entry to record bad debt provision.
Given Information:
Unadjusted balance in allowance for uncollectible accounts is $94,800.
c.
To determine
To prepare: The Journal entry to record bad debt provision.
Given Information:
Unadjusted balance in allowance for uncollectible accounts is $231,000.
d.
To determine
To prepare: The journal entry to record the bad debt provision.
Given information:
Net credit sale is $20,000,000.
e.
To determine
The Journal entry to write off accounts.
Given Information:
Accounts receivables of over 90 days past due to be written off are $427,500.
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