Question
In: Accounting
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.
Solutions
Expert Solution
Answer :
Year end adjusting entry for uncollectible accounts.
Debit.......Bad Debt Expense........$19,700
Credit....Allowance for doubtful accounts.....$19,700
Explanation:
Age in days Amount % Uncollectible Amount Uncollectible
0-30 400,000 0.5% 2,000
31-60 100,000 1.5% 1,500
61-90 60,000 10.0% 6,000
91-120 20,000 50.0% 10,000
Over 120 0 99.0% 0
Total 580,000 $19,500
Since allowance for doubtful accounts has an unadjusted debit balance of $200, we need to make an adjustment which makes the balance in this account as $19,500. Hence adjustment required = 19500+200 = $19,700
ekkarill92 answered 1 year agoRelated Solutions
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...
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
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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
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b. Prepare the adjusting entry to record...
(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
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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
%
...
Estimate the amount of uncollectible receivables.
Mercy Hospital has the following balances on December 31, 2021, before any adjustment Accounts Receivable = $70,000; Allowance for Uncollectible Accounts = $1,400 (credio. Mercy estimates uncollectible accounts based on an aging of accounts receivable as shown below. Required: 1. Estimate the amount of uncollectible receivables. 2. Record the adjusting entry for uncollectible accounts on December 31, 2021. (If no entry is required for a particular transaction/event, select "No Journal Entry Required" in the first account field.) 3. Calculate net accounts receivable.
E9-20 Accounting for uncollectible accounts using the allowance method (aging-of-receivables) and reporting receivables on the balance...
E9-20 Accounting for uncollectible accounts using the allowance
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Create an example of how to estimate and record uncollectible accounts using the AGING OF RECEIVABLES...
Create an example of how to estimate and record uncollectible
accounts using the AGING OF RECEIVABLES METHOD by addressing the
following points:
1. Calculate your estimate and include all detail to support
your calculation.
2. What account should be DEBITED, and for how much money?
3. What account should be CREDITED, and for how much money?
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
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35) The following aging information pertains to Jacobsen Co.'s accounts receivable at December 31, 2021: Days...
35) The following aging information pertains to Jacobsen Co.'s
accounts receivable at December 31, 2021:
Days Outstanding
Amount
Estimated % Uncollectible
0-30
$
420,000
2
%
31-60
140,000
5
%
61-120
100,000
10
%
Over 120
120,000
20
%
During 2021, Jacobsen wrote off $18,000 in receivables and
recovered $6,000 that had been written off in prior years.
Jacobsen's December 31, 2020, allowance for uncollectible accounts
was $40,000. Using the balance sheet approach, what amount of
allowance for uncollectible accounts...
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