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In: Accounting
5. Black Corporation had a 1/1/20 balance in the Allowance for Doubtful Accounts of $21,000. The...
5. Black Corporation had a 1/1/20 balance in the Allowance for Doubtful Accounts of $21,000. The balance in Accounts Receivable was $420,000 at 1/1 and $504,000 at 12/31. At 12/31/20, Black estimates that 5% of accounts receivable will prove to be uncollectible. What should Black report as its Allowance for Doubtful Accounts at 12/31/20?
6. David Company uses the gross method to record sales made on credit. On June 10, 2020, it sold goods worth $250,000 with terms 2/10, n/30 to Charles Inc. On June 19, 2020, David received payment for 1/2 of the amount due from Charles Inc. David’s fiscal year end is on June 30, 2020. What amount will be reported in the financial statements for the accounts receivable due from Charles Inc.?
7. Becky had net sales (all on account) in 2020 of $8,000,000. At December 31, 2020, before adjusting entries, the balances in accounts receivable was a $1,000,000 debit. Becky estimates that 3% of its accounts receivable will prove to be uncollectible. What is the net amount expected to be collected of the receivables reported on the financial statements at December 31, 2020? (Net A/R)
8. Wellington Corp. has outstanding accounts receivable totaling $1.27 million as of December 31. If the company estimates that 2% of its accounts receivable will be uncollectible, what will be the balance in the allowance for doubtful accounts after the year-end adjustment to record bad debt expense?
Solutions
ekkarill92 answered 2 years agoRelated Solutions
Question (5) Molina Company had a $700 credit balance in Allowance for Doubtful Accounts at December...
Question (5)
Molina Company had a $700 credit balance in Allowance for
Doubtful Accounts at December 31, 2016, before the current year's
provision for uncollectible accounts. An aging of the accounts
receivable revealed the following:
Estimated Percentage
Uncollectible
Current
Accounts
$120,000
1%
1–30 days past
due
20,000
3%
31–60 days past
due
10,000
6%
61–90 days past
due
10,000
12%
Over 90 days
past
due
8,000
30%
Total Accounts
Receivable ...
On January 1, Henry Company's allowance for doubtful accounts had a credit balance of $44,000. The...
On January 1, Henry Company's allowance for doubtful accounts
had a credit balance of $44,000. The balance in the Accounts
Receivable account on that date was $185,000. On January 2, prior
to any credit sales, a $14,500 account from Walco Company was
deemed to be uncollectible and written off.
Please show work and calculate:
Compute the net realizable value of Henry’s receivables on
January 1.
What is the balance in the Accounts Receivable account
immediately following the write-off of the...
Sam's Construction had a balance in its allowance for doubtful accounts at the end of 2014...
Sam's Construction had a balance in its allowance for doubtful
accounts at the end of 2014 of $44,500. Sam reported credit sales
of $5,000,000 in 2014 and wrote off receivables of $43,000 during
2014. At the end of the year, Sam estimates un-collectible accounts
receivable based on the year-end aging using the assumptions
provided at left.
What should the balance be in Sam's Construction allowance for
doubtful accounts as of December 31,2015?
As of December 31, 2015
Estimated
Days Past...
Sam's Construction had a balance in its allowance for doubtful accounts at the end of 2014...
Sam's Construction had a balance in its allowance for doubtful
accounts at the end of 2014 of $44,500. Sam reported credit sales
of $5,000,000 in 2014 and wrote off receivables of $43,000 during
2014. At the end of the year, Sam estimates un-collectible accounts
receivable based on the year-end aging using the assumptions
provided at left.
What should Sam report as bad debt expense for 2015?
As of December 31, 2015
Estimated
Days Past Due
Receivables
Uncollectible
0-30 days past...
10) Thatcher Company had a January 1, credit balance in its Allowance for Doubtful Accounts of...
10) Thatcher Company had a January 1, credit balance in its
Allowance for Doubtful Accounts of $4,000 for the current year. The
following transactions and events affected the Allowance for
Doubtful Accounts during the current year:
Apr 15 Bean's account receivable of
$2,700 was deemed uncollectible.
July 1
Cho paid the full amount of a previously written-off account
receivable. This receivable of $1,300 had been written off in the
prior year.
Dec 31 Bad debts expense of $4,500 was...
Kiley Company had a $700 credit balance in Allowance for Doubtful Accounts (What is normal balance...
Kiley Company had a $700 credit balance in Allowance for
Doubtful Accounts (What is normal balance for the contra asset?(
Debit or Credit?) at December 31, 2020, before the current year's
provision for uncollectible accounts. An aging of the accounts
receivable revealed the following:
Number of Days Outstanding
TOTAL
Current
30
31-60
61-90
Over 90
Accounts receivable
155,000
120,000
12,000
10,000
5,000
8,000
% Uncollectible
1%
3%
8%
17%
40%
Estimated bad debts
1,200
Instructions
Calculate the balance for the...
On 1 June, Mason and Boyce had Accounts Receivable and Allowance for Doubtful Debts accounts as...
On 1 June, Mason and Boyce had Accounts Receivable and Allowance
for Doubtful Debts accounts as below. Ignore GST.
accounts recievables
1/6 balance 849,555
allowance for doubtful debts
1/6 balance 12.100
During June, the following transactions occurred:
1. Revenue earned on credit, $1,195,000
. 2. Sales returns, $24,100.
3. Accounts receivable collected, $1,400,000
. 4. Accounts written off as uncollectable, $15,851.
Based on an ageing of accounts receivable on 30 June, the firm
determined that the Allowance for Doubtful...
On December 31, 2013, when its Allowance for Doubtful accounts had a debit balance of $1,400,...
On December 31, 2013, when its Allowance for Doubtful accounts
had a debit balance of $1,400, Hunt co. estimates that 9% of its
accounts receivable balance of $90000 will become uncollectible and
records the necessary adjustment to Allowance for Doubtful
Accounts. On may 11, 2014, Hunt Co. determined that J. Byrd's
account was uncollectible and wrote of $1,200. On June 12, 2014,
Byrd paid the amount previously written off.
Prepare the journal entries on December 31, 2013, May 11, 2014,...
Winfrey Designs had an unadjusted credit balance in its Allowance for Doubtful Accounts at December 31,...
Winfrey Designs had an unadjusted credit balance in its
Allowance for Doubtful Accounts at December 31, 2017, of
$2,200.
Required:
a. Prepare the adjusting entry assuming that Winfrey
estimates uncollectible accounts based on an aging analysis as
follows. (If no entry is required for a transaction/event,
select "No journal entry required" in the first account
field.)
December 31, 2017 Accounts Receivable
Age of Accounts Receivable
Expected Percentage Uncollectible
$
148,000
Not due (under 30 days)
1
%
43,000
1 to...
Kiley Company had a $600 credit balance in Allowance for Doubtful Accounts at December 31, 2018,...
Kiley Company had a $600 credit balance in Allowance for
Doubtful Accounts at December 31, 2018, before the current year's
provision for uncollectible accounts. Aging of the accounts
receivable revealed the following:
Estimated Percentage Uncollectible
Current accounts
120,000
1%
1-30 days past due
12,000
3%
31-60 days past
due
10,000
6%
61-90 days past
due
5,000
12%
Over 90 days past
due
8,000
30%
Total Accounts
Receivable
155,000
(a) Prepare the
adjusting entry on December 31, 2018, to recognize bad debts...
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