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Exercise 5-10A Record the adjusting entry for uncollectible accounts using the aging method (LO5-5) Mercy Hospital...
Exercise 5-10A Record the adjusting entry for uncollectible accounts using the aging method (LO5-5) Mercy Hospital has the following balances on December 31, 2021, before any adjustment: Accounts Receivable = $62,000; Allowance for Uncollectible Accounts = $1,300 (credit). Mercy estimates uncollectible accounts based on an aging of accounts receivable as shown below. Age Group Amount Receivable Estimated Percent Uncollectible Not yet due $ 42,000 20 % 0–30 days past due 10,200 25 % 31–90 days past due 7,200 40 % More than 90 days past due 2,600 80 % Total $ 62,000 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.
Solutions
ekkarill92 answered 1 year agoRelated Solutions
Brief Exercise 5-6 Record the adjusting for uncollectible accounts (LO5-5) At the end of the year,...
Brief Exercise 5-6 Record the adjusting for uncollectible
accounts (LO5-5)
At the end of the year, Mercy Cosmetics’ balance of Allowance
for Uncollectible Accounts is $400 (credit) before
adjustment. The balance of Accounts Receivable is $15,000. The
company estimates that 10% of accounts will not be collected over
the next year.
What adjustment would Mercy Cosmetics record for Allowance for
Uncollectible Accounts? (If no entry is required for a
particular transaction/event, select "No Journal Entry Required" in
the first account...
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?
Under the allowance method of uncollectible accounts, how does the adjusting entry to estimate the amount...
Under the allowance method of uncollectible accounts, how does
the adjusting entry to estimate the amount that will become
uncollectible affect the accounting equation?
Entry for Uncollectible Accounts Easy Rider International is a wholesaler of motorcycle supplies. An aging of...
Entry for Uncollectible Accounts
Easy Rider International is a wholesaler of motorcycle
supplies. An aging of the company's accounts receivable on December
31, 20Y3, and a historical analysis of the percentage of
uncollectible accounts in each age category are as follows:
Age Interval
Balance
Percent
Uncollectible
Not past due
$1,850,000
1
%
1–30 days past due
750,000
2
31–60 days past due
100,000
6
61–90 days past due
60,000
14
91–180 days past due
45,000
60
Over 180 days past...
In making the adjusting entry for uncollectible accounts, a company may use the percent of sales...
In making the adjusting entry for uncollectible accounts, a
company may use the percent of sales method or the percent of
receivables method. Briefly describe each method and explain which
method you would prefer to use and why?
Artis, Inc. uses the aging of accounts receivable method for estimating uncollectible accounts. As of October...
Artis, Inc. uses the aging of accounts receivable method for
estimating uncollectible accounts. As of October 31, total Accounts
Receivable was $17,800 of which $8,400 was 0 - 30 days old; $5,900
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
accounts over 60 days old will be...
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
method (aging-of-receivables) and reporting receivables on the
balance sheet
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?...
Exercise 5-11 Comprehensive Exercise; Second Production Department-Weighted-Average Method [LO5-2, LO5-3, LO5-4, LO5-5] Scribners Corporation produces fine...
Exercise 5-11 Comprehensive Exercise; Second Production
Department-Weighted-Average Method [LO5-2, LO5-3, LO5-4, LO5-5]
Scribners Corporation produces fine papers in three production
departments—Pulping, Drying, and Finishing. In the Pulping
Department, raw materials such as wood fiber and rag cotton are
mechanically and chemically treated to separate their fibers. The
result is a thick slurry of fibers. In the Drying Department, the
wet fibers transferred from the Pulping Department are laid down on
porous webs, pressed to remove excess liquid, and dried in...
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