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
Solution Summary: The author calculates the closing balance required in the allowance for uncollectible accounts at year-end.
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
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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