Question
In: Accounting
Daley Company prepared the following aging of receivables analysis at December 31. Days Past Due Total...
Daley Company prepared the following aging of receivables analysis
at December 31.
| Days Past Due | |||||||||||||||||||||||
| Total | 0 | 1 to 30 | 31 to 60 | 61 to 90 | Over 90 | ||||||||||||||||||
| Accounts receivable | $ | 590,000 | $ | 400,000 | $ | 94,000 | $ | 40,000 | $ | 22,000 | $ | 34,000 | |||||||||||
| Percent uncollectible | 2 | % | 3 | % | 6 | % | 8 | % | 11 | % | |||||||||||||
Exercise 7-8 Aging of receivables method LO P3
a. Complete the below table 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
$4,000 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 $500
debit.
Solutions
Expert Solution
a.
| Total | Age of account | |||||
| 0 | 1 to 30 days | 31 to 60 days | 61 to 90 days | Over 90 days | ||
| Accounts receivable | 590,000 | 400,000 | 94,000 | 40,000 | 22,000 | 34,000 |
| Estimated Percentage Uncollectible | 2.0% | 3.0% | 6.0% | 8.0% | 11.0% | |
| Total estimated uncollectibles | 18,720 | 8,000 | 2,820 | 2,400 | 1,760 | 3,740 |
b.
Allowance for doubtful accounts, existing = $4,000
Allowance for doubtful accounts, ending = $18,720
Bad debt expense = Allowance for doubtful accounts, ending - Allowance for doubtful accounts, existing
= 18,720-4,000
= $14,720
| General Journal | Debit | Credit |
| Bad debt expense | $14,720 | |
| Allowance for doubtful accounts | $14,720 | |
| ( To record bad debt expense) |
c.
Allowance for doubtful accounts, existing = $500 (Debit)
Allowance for doubtful accounts, ending = $18,720
Bad debt expense = Allowance for doubtful accounts, ending - Allowance for doubtful accounts, existing
= 18,720+500
= $19,220
| General Journal | Debit | Credit |
| Bad debt expense | $19,220 | |
| Allowance for doubtful accounts | $19,220 | |
| ( To record bad debt expense) |
Kindly comment if you need further assistance. Thanks‼!
ekkarill92 answered 2 years agoRelated Solutions
Daley Company prepared the following aging of receivables analysis at December 31. Days Past Due Total...
Daley Company prepared the following aging of receivables
analysis at December 31.
Days Past Due
Total
0
1 to 30
31 to 60
61 to 90
Over 90
Accounts receivable
$
580,000
$
398,000
$
92,000
$
38,000
$
20,000
$
32,000
Percent uncollectible
3
%
4
%
7
%
9
%
12
%
a. Complete a table to calculate the estimated
balance of Allowance for Doubtful Accounts using aging of accounts
receivable.
b. Prepare the adjusting entry to record...
Daley Company prepared the following aging of receivables analysis at December 31.
Daley Company prepared the following aging of receivables analysis at December 31.
Days Past Due
Total
0
1 to 30
31 to 60
61 to 90
Over 90
Accounts receivable
$
615,000
$
405,000
$
99,000
$
45,000
$
27,000
$
39,000
Percent uncollectible
1
%
2
%
5
%
...
Ch 7 E7-9, E7-10 Daley Company prepared the following aging of receivables analysis at December 31....
Ch 7 E7-9, E7-10
Daley Company prepared the following aging of receivables analysis
at December 31.
Days Past Due
Total
0
1
to 30
31
to 60
61
to 90
Over 90
Accounts receivable
$
570,000
$
396,000
$
90,000
$
36,000
$
18,000
$
30,000
Percent
uncollectible
1
%
2
%
5
%
7
%
10
%
a. Estimate the balance of the Allowance for
Doubtful Accounts assuming the company uses 4.5% of total accounts
receivable to estimate uncollectibles,...
Daley Company prepared the following aging of receivables: Bad Debt Expense
Daley Company prepared the following aging of receivables analysis at December 31. Days Past Due Total01 to 3031 to 6061 to 90Over 90Account receivables670000416000110000560003800050000% uncollectible 3%4%7%9%12%Requirements: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 $5,600 credit.c. Prepare the adjusting entry to record...
On December 31 an aging of receivables revealed the following Age in days Amount % Uncollectible...
On December 31 an aging of receivables revealed the
following
Age in days Amount % Uncollectible
0-30 400,000 0.5%
31-60 100,000 1.5
61-90 60,000 10.0
91-120 20,000 50.0
Over 120
0
99.0
The allowance for doubtful accounts has an unadjusted debit
balance of $200.
Record the year end adjusting entry for uncollectible
accounts.
[The following information applies to the questions displayed below.] Daley Company prepared the following aging of...
[The following information applies to the questions
displayed below.]
Daley Company prepared the following aging of receivables analysis
at December 31.
Days Past Due
Total
0
1 to 30
31 to 60
61 to 90
Over 90
Accounts receivable
$
595,000
$
401,000
$
95,000
$
41,000
$
23,000
$
35,000
Percent uncollectible
3
%
4
%
7
%
9
%
12
%
Exercise 7-9 Percent of receivables method LO P3
a. Estimate the balance of the Allowance for
Doubtful...
[The following information applies to the questions displayed below.] Daley Company prepared the following aging of...
[The following information applies to the questions
displayed below.]
Daley Company prepared the following aging of receivables analysis
at December 31.
Days Past Due
Total
0
1 to 30
31 to 60
61 to 90
Over 90
Accounts receivable
$
595,000
$
401,000
$
95,000
$
41,000
$
23,000
$
35,000
Percent uncollectible
3
%
4
%
7
%
9
%
12
%
Exercise 7-8 Aging of receivables method LO P3
a. Complete the below table to calculate the estimated...
3. Using the information below, perform the following tasks: Account Receivables Not Past Due 0-31 days...
3. Using the information below, perform the following tasks:
Account Receivables
Not Past Due
0-31 days Past Due
31-60 days Past Due
61-90 days Past Due
+ 90 days Past Due
350,000
175,000
83,000
38,000
12,000
Percentage of not collecting
2%
8%
22%
58%
78%
Calculate the estimated amount of receivables that might not be
collected
Perform the adjustment(debit/credit) using the allowance
method.
McClane, Inc. provided the following aging of its receivables at December 31. Age of Accounts Receivables...
McClane, Inc. provided the following aging of its receivables at
December 31.
Age of Accounts
Receivables Balance
Estimated
% Uncollectible
0-30 days
$420,000
0.5%
31 to 60 days
200,000
5.2%
61 to 90 days
75,000
10.3%
91 to 120 days
35,000
21.5%
Over 121 days
15,000
75.2%
Total
$745,000
During the year, $22,500 of receivables were written off. The
balance at the beginning of the year in the allowance account was a
credit of $25,000.
How much will McClane...
(Accounts receivable and uncollectible accounts—aging of receivables method) On December 31, 2019, Ajacks Company reported the...
(Accounts receivable and uncollectible accounts—aging of
receivables method)
On December 31, 2019, Ajacks Company reported the following
information in its financial statements:
Accounts receivable
$1,193,400
Allowance for doubtful accounts
81,648
Bad debts expense
80,448
During 2020, the company had the following transactions related
to receivables:
a. Sales were
$10,560,000, of which $8,448,000 were on account.
b. Collections of
accounts receivable were $7,284,000.
c. Writeoffs of
accounts receivable were $78,000.
d. Recoveries of
accounts previously written off as uncollectible were $8,100....
ADVERTISEMENT
ADVERTISEMENT
Latest Questions
- Instructions: Each of the following scenarios illustrates one of Freud’s defense mechanisms from the list below....
- What are the SHDN, LNA in opamp What are the TXCO coding algorithm for binary and...
- Need to program a maze traversal program using dynamic array and stacks. The problem is faced...
- what were some of Ida B Wells significant contributions to the civil rights movement?
- In 2007, there were many people in Sri Lanka who have an opinion that the government...
- Example #2: Write the following set of four linear equations with 4 unknowns x1, x2, x3,...
- "In the digital age, our personal and collective privacy is threatened like it never has been...
ADVERTISEMENT