a.
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 prepare: The
Given Information:
Unadjusted balance in allowance for uncollectible accounts is $94,800.
c.
To prepare: The Journal entry to record bad debt provision.
Given Information:
Unadjusted balance in allowance for uncollectible accounts is $231,000.
d.
The Journal entry to write off accounts.
Given Information:
Accounts receivables of over 90 days past due to be written off are $427,500.
e.
The Journal entry to write off accounts.
Given Information:
Accounts recovered subsequently are $345,000.
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INTERMEDIATE ACCOUNTING-MYLAB W/ETEXT
- Perry Materials uses the aging method and has completed the following analysis of the accounts receivable: Customer Over 90 Total 1-30 Days 31-60 Days 61-90 Days Days Balance Johnson $4,600 $3,200 $7,800 Hot Pots, Inc. 800 1,000 1,800 Potter 40,000 550 40,550 Harrison 3,600 900 4,500 Marx 2,000 50 2,050 Younger 65,000 65,000 Merry Maids 5,900 5,900 Acher 12.000 6,400 18,400 Totals $127,500 $13,750 $3,700 $1,050 $146,000 Uncollectible percentage 10% 20% 40% Estimated uncollectible amount $2,550 $1,375 $740 $420 $5,085 Required: 1. How much will the Uncollectible account expense for the year be? 2. What will the final balance in the Allowance account be, after adjusting for uncollectible account expense?arrow_forwardSeaforth International wrote off the following accounts receivable as uncollectible for the year ending December 31: Customer Amount Kim Abel $24,300 Lee Drake 30,600 Jenny Green 29,900 Mike Lamb 17,900 Total $102,700 The company prepared the following aging schedule for its accounts receivable on December 31: Aging Class (Number of Days Past Due) Receivables Balance on December 31 Estimated Percent of Uncollectible Accounts 0–30 days $730,000 1% 31–60 days 290,000 2 61–90 days 114,000 15 91–120 days 70,000 30 More than 120 days 92,000 60 Total receivables $1,296,000 A. Journalize the write-offs under the direct write-off method. If no entry is required, simply skip to the next transaction. Refer to the Chart of Accounts for exact wording of account titles. B. Journalize the write-offs and the year-end adjusting entry under the allowance method, assuming that the allowance account had a beginning balance of $88,300 and the company uses…arrow_forwardCustomer Bad Debt Expense, Aging of Accounts Receivable, Journal Entry. Giaraldi Garden Products, Inc. developed an aged schedule of accounts receivable at the end of each year. Giaraldi Garden Products: Aged Schedule of Accounts Receivable Past Due Current 1-30 Days 31-60 Days 61-90 Days Over 90 Days The company estimated an allowance for uncollectible accounts based on the following estimates: Aging Category Current Allowance Provided 3% 1-30 days past due 6% 31-60 days past due 18% Totals 61-90 days past due 45% Carey Company $ 10,000 $ 34,500 $ 44,500 Over 90 days past due 100% Gibson, Ltd. $ 423,000 $ 27,000 450,000 KW Quarterly Onix Construction 33,000 $ 67,000 100,000 1,500 101,500 Giaraldi reported for the current year: 45,000 Carpenter Lumber Totals 387,000 $ 125,000 810,000 $ 185,000 $ 167,000 $ 90,500 500 235,500 512,500 Net credit sales $ 18,500,000 55,000 $ 127,000 $ 1,344,000 The company's ending balances of accounts receivable and the allowance for uncollectible accounts…arrow_forward
- During the year, New York Communications estimates Uncollectible-account expense at 1% of credit sales. At year-end (December 31), the company ages its receivables and adjusts the balance in Allowance for Uncollectible Accounts to correspond to the following aging schedule. Age of Accounts Accounts Rececivable 1-30 Days 31-60 Days 61-90 Days Over 90 Days $49,000 $238,000 Estimated percent uncollectible $144,000 0.2% $17,000 $28,000 2% 15% 35% During the last quarter of 2019, the company completed the following selected transactions: Nov 30 Wrote off as uncollectible the $1,300 account receivable from Clupper Carpets and the $500 account receivable from Medina Antiques. Dec 31 Adjusted the Allowance for Uncollectible Accounts and recorded uncollectible-account expense at year-end, based on the aging of receivables. Record the transactions for the last quarter of 2019 in the joumal. Explanations are not required. Prepare a T-account for Allowance for Uncollectible Accounts with the…arrow_forwardJonha's Company had the following accounts receivable (AR) aging schedule. 1-30 31-60 61-90 91+ Company days days days days A $400 $200 $0 $0 B. $500 $100 $0 $0 $400 $400 $0 What % of AR invoices does Jonha's expect to collect in 61-90 days?arrow_forwardข้อ1 Sammy’s Downtown Properties developed an aged schedule of accounts receivable at the end of each year.Sammy’s Downtown Properties: Aged Schedule of Accounts Receivable (In the picture) The company estimated an expected credit loss based on the following rules:Aging Category Probability of CollectionCurrent 4%1-30 Days 8%31-60 Days 10%61-90 Days 35%Over 90 Days 50%Sammy’s reported net credit sales of 4,500,000 for the current year. We present the company’s ending balancesof accounts receivable and the credit loss allowance below: Accounts ReceivableEnding Balance 587,400 Credit loss allowance 120,000 Unadjusted Ending…arrow_forward
- The beginning balance in the Allowance for Uncollectible Accounts account is a $3,500 credit. After conducting an aging analysis, management has determined that $8,200 of accounts receivable will be uncollectible. What was the Uncollectible Accounts Expense for the year? $11,700 $4,700 $8,200 $3,500arrow_forwardPrepare an aging schedule to determine the total estimated uncollectibles at March 31,2018arrow_forwardPerry Materials uses the aging method and has completed the following analysis of the accounts receivable: Over 90 Total Balance Customer 1-30 Days 31-60 Days 61-90 Days Days Johnson $4,600 $3,200 $7,800 Hot Pots, Inc. 800 1,000 1,800 Potter 40,000 550 40,550 Harrison 3,600 900 4,500 Marx 2,000 50 2,050 Younger 65,000 65,000 Merry Maids 5,900 5,900 Acher 12,000 6,400 18,400 Totals $127,500 $13,750 $3,700 $1,050 $146,000 Uncollectible percentage 2% 10% 20% 40% Estimated uncollectible amount $2,550 $1,375 $740 $420 $5,085 Required: 1. How much will the Uncollectible account expense for the year be? 2. What will the final balance in the Allowance account be, after adjusting for uncollectible account expense?arrow_forward
- Kingbird Merchandising uses an aging schedule to determine its estimated uncollectible accounts at year end. The percentage estimates of bad debts are as follows: KINGBIRD MERCHANDISING Aged Schedule of Accounts Receivable No. of Days Outstanding 0-30 days 31-60 days 61-90 days Over 90 days (a) Number of Days Outstanding 0-30 days 31-60 days Amount $61,400 26,000 61-90 days 11,700 Using the information above for Kingbird Merchandising, prepare the adjusting entry to record bad debt expense for each of the following independent situations: Over 90 days 4,900 $104,000 The Allowance for Doubtful Accounts has an unadjusted $1,590 debit balance and the company uses the aging schedule to determine estimated uncollectible accounts. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts. List debit entry before credit entry. Round answers to 2 decimal…arrow_forwardSeaforth International wrote off the following accounts receivable as uncollectible for the year ending December 31: Customer Amount Kim Abel $ 24,300 Lee Drake 31,195 Jenny Green 29,715 Mike Lamb 17,890 Total $103,100 The company prepared the following aging schedule for its accounts receivable on December 31: Aging Class (Number of Days Past Due) Receivables Balance on December 31 Estimated Percent of Uncollectible Accounts 0–30 days $ 735,000 1% 31–60 days 290,000 2 61–90 days 111,000 15 91–120 days 70,000 30 More than 120 days 94,000 60 Total receivables $1,300,000 A. Journalize the write-offs under the direct write-off method. If no entry is required, simply skip to the next transaction. Refer to the Chart of Accounts for exact wording of account titles. B. Journalize the write-offs and the year-end adjusting entry under the allowance method, assuming that the…arrow_forwardRenta Public Image, a firm specializing in marketing and publicity services, uses the balance sheet ap- proach to estimate uncollectible accounts expensc. At year-end an aging of the accounts receiv- Aging Accounts able produced the following classification: PROBLEM 7.5 Receivable; Write-offs LO 5 Not yet due 1-30 days past due $333,000 135,000 31-60 days past due 58,500 61-90 days past due 13,500 Over 90 days past due 22,500 Total $562,500 On the basis of past experience, the company estimated the percentages probably uncollectible for the above five age groups to be as follows: Group I, 1%; Group 2, 3%; Group 3, 10%; Group 4, 20%; and Group 5, 50%. The Allowance for Doubtful Accounts before adjustment at December 31 showed a credit bal- ance of $8,100. Instructions & Compute the estimated amount of uncollectible accounts based on the above classification by age groups. 6. Prepare the adjusting entry needed to bring the Allowance for Doubtful Accounts to the proper amount. C. Assume…arrow_forward
- Financial Accounting: The Impact on Decision Make...AccountingISBN:9781305654174Author:Gary A. Porter, Curtis L. NortonPublisher:Cengage LearningEBK CONTEMPORARY FINANCIAL MANAGEMENTFinanceISBN:9781337514835Author:MOYERPublisher:CENGAGE LEARNING - CONSIGNMENT