Question
In: Accounting
Shamrock Merchandising uses an aging schedule to determine its estimated uncollectible accounts at year end. The...
Shamrock Merchandising uses an aging schedule to determine its
estimated uncollectible accounts at year end. The percentage
estimates of bad debts are as follows:
| SHAMROCK
MERCHANDISING Aged Schedule of Accounts Receivable |
||||||
|
No. of Days Outstanding |
Amount | Estimated
% Uncollectible |
||||
| 0–30 days | $61,000 | 0.40% | ||||
| 31–60 days | 26,300 | 5.75% | ||||
| 61–90 days | 11,600 | 19.00% | ||||
| Over 90 days | 4,800 | 48.00% | ||||
| $103,700 | ||||||
Using the information above for Manoir Merchandising, prepare the
adjusting entry to record bad debt expense for each of the
following independent situations:
The Allowance for Doubtful Accounts has an unadjusted $1,730 debit balance and the company uses the aging schedule to determine estimated uncollectible accounts.
| SHAMROCK
MERCHANDISING Aged Schedule of Accounts Receivable |
||||||||
| Number of Days Outstanding |
Amount | Estimated
% Uncollectible |
Estimated Uncollectible Accounts |
|||||
| 0–30 days | $61,000 | 0.40% | $ | |||||
| 31–60 days | 26,300 | 5.75% | ||||||
| 61–90 days | 11,600 | 19.00% | ||||||
| Over 90 days | 4,800 | 48.00% | ||||||
| $103,700 | $ | |||||||
|
Date |
Account Titles and Explanation |
Debit |
Credit |
| Dec. 31 | |||
Solutions
ekkarill92 answered 1 year agoRelated Solutions
1. The amount of uncollectible accounts at the end of the year is estimated to be...
1. The amount of uncollectible accounts at the end of the year
is estimated to be $25,000 using the aging of accounts receivable
method. The balance in the Allowance of Doubtful Accounts account
is an $8,000 credit before adjustment. Assuming no accounts are
written off during the period, what will be the amount of bad debts
expense for the period?
2. plasma inc. has net credit sales of $500,000 during the year.
Based on historical information, Plasma estimates that 2%...
Oriole Co. uses an aging schedule at December 31. Number of Days Outstanding Accounts Receivable Estimated...
Oriole Co. uses an aging schedule at December 31.
Number of Days
Outstanding
Accounts
Receivable
Estimated
%
Uncollectible
Estimated
Uncollectible
Accounts
0–30 days
$264,600
1%
$2,646
31-60 days
71,300
5%
3,565
61-90 days
45,400
11%
4,994
Over 90 days
21,600
19%
4,104
Total
$402,900
$15,309
A) Assuming the allowance for doubtful accounts has an
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Artis, Inc. uses the aging of accounts receivable method for
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was 31 - 60 days old; and the remainder was over 60 days old. Artis
estimates 1% of accounts 0 - 30 days old will be uncollectible; 5%
of accounts 31 - 60 days old will be uncollectible; and 15% of
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Glencoe Supply had the following accounts receivable aging schedule at the end of a recent year....
Glencoe Supply had the following accounts receivable aging
schedule at the end of a recent year.
Accounts
Receivable Age
Amount
Proportion
Expected
to Default
Allowance
Required
Current
$310,500
0.005
$1,553
1–30 days past due
47,500
0.01
475
31–45 days past due
25,000
0.13
3,250
46–90 days past due
12,800
0.20
2,560
91–135 days past due
6,100
0.25
1,525
Over 135 days past due
4,200
0.60
2,520
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The balance in Glencoe's allowance for doubtful accounts at the
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Wheeling Inc. uses the aging of accounts receivable method. It estimates 5% of its year-end balance...
Wheeling Inc. uses the aging of accounts receivable
method. It estimates 5% of its year-end balance of Accounts
Receivable is $100,000 to be uncollectible, and the unadjusted
debit balance of the Allowance for Doubtful Accounts is $500.
Credit sales during the year totaled $150,000. What is the
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Grana Inc. uses the Aging of Accounts Receivable method for estimating uncollectible accounts. The accounting records...
Grana Inc. uses the Aging of Accounts Receivable method
for estimating uncollectible accounts. The accounting records show
the following information at the end of the year:
Number of Days Unpaid
0 - 30
31 - 60
61 - 90
Over 90
Accounts Receivable
$370,000
$240,000
$110,000
$80,000
Estimated % Uncollectible
10%
15%
25%
5%
If the unadjusted credit balance in the Allowance for
Doubtful Accounts account before is $15,000, what would be the
amount of the adjustment for bad debts?...
Grana Inc. uses the Aging of Accounts Receivable method for estimating uncollectible accounts. The accounting records...
Grana Inc. uses the Aging of Accounts Receivable method
for estimating uncollectible accounts. The accounting records show
the following information at the end of the year:
Number of Days Unpaid
0 - 30
31 - 60
61 - 90
Over 90
Accounts Receivable
$370,000
$240,000
$110,000
$80,000
Estimated % Uncollectible
10%
15%
25%
5%
If the unadjusted credit balance in the Allowance for
Doubtful Accounts account before is $15,000, what would be the
amount of the adjustment for bad debts?...
Domino Company uses the aging of accounts receivable method to estimate uncollectible accounts expense. Domino began...
Domino Company uses the aging of accounts receivable method to
estimate uncollectible accounts expense. Domino began Year 2 with
balances in Accounts Receivable and Allowance for Doubtful Accounts
of $44,010 and $3,440, respectively. During the year, the company
wrote off $2,620 in uncollectible accounts. In preparation for the
company's Year 2 estimate, Domino prepared the following aging
schedule:
Number of
days
Receivables
% Likely to be
past due
amount
uncollectible
Current
$
70,000
1%
0-30
26,700
5%
31-60
6,760
10%...
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Young and Restless Corporation (YRC) uses two aging categories to estimate uncollectible accounts. Accounts less than 60 days are considered current and have a 5% uncollectible rate. Accounts more than 60 days are considered delinquent and have a 30% uncollectible rate.. YRC’s Allowance for Doubtful Accounts currently has an unadjusted credit balance of $551
If YRC has $54,080 of current accounts and $4,910 of delinquent accounts, how much should be reported in the Allowance for Doubtful Accounts? 54080*.05 +...
XY merchandising uses the allowance method to account for uncollectible accounts. They have a debit balance...
XY merchandising uses the allowance method to account for
uncollectible accounts. They have a debit balance of $150,000 in
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allowance account prior to making an estimate at the end of 2009.
they estimate that 2% of the receivable will not be collected.
Prepare the adjusting entry XY merchandising should make on
12/31/2018.
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