Question
In: Accounting
B-Good, Inc. has accounts receivable at September 30 of $1,000,000. At September 30, Allowance for Doubtful...
| B-Good, Inc. has accounts receivable at September 30 of $1,000,000. At September 30, Allowance for Doubtful Accounts has a | |||||||||
| credit balance (prior to adjustment) of | $ 2,250 | ||||||||
| The Company uses the percentage of receivables basis for estimating uncollectible accounts. An analysis of the accounts | |||||||||
| and the percentage of estimated bad debts are as follows: | |||||||||
| Month of | Age of | 9/30 | Estimated % | ||||||
| Sale: | Accounts | Balance | Uncollectible | ||||||
| September | 1 - 30 days | $650,000 | 2.5% | ||||||
| August | 31 - 60 days | 150,000 | 6.0% | ||||||
| July | 61 - 90 days | 120,000 | 33.0% | ||||||
| June | 91-120 days | 50,000 | 59.0% | ||||||
| Prior to June | over 120 days | 30,000 | 90.0% | ||||||
| $1,000,000 | |||||||||
| Instructions: | |||||||||
| (a) Determine the total estimated uncollectibles. | |||||||||
| Total | |||||||||
| Age of | Estimated | ||||||||
| Accounts | Balance | % | Uncollectible | ||||||
| Cell Reference | Cell Reference | Cell Reference | Formula | ||||||
| Cell Reference | Cell Reference | Cell Reference | Formula | ||||||
| Cell Reference | Cell Reference | Cell Reference | Formula | ||||||
| Cell Reference | Cell Reference | Cell Reference | Formula | ||||||
| Cell Reference | Cell Reference | Cell Reference | Formula | ||||||
| Formula | |||||||||
| (b) Record the adjusting journal entry to estimate bad debts. Include an explanation of the entry. | |||||||||
| Debit | Credit | ||||||||
| Sep 30 | Account Title | Formula | |||||||
| Account Title | Cell Reference | ||||||||
| Explanation | |||||||||
| (c) On 10/15, management authorizes the write-off of an uncollectible customer account with a balance of | $ 9,640 | ||||||||
| Record this write off. | |||||||||
| Debit | Credit | ||||||||
| Oct. 15 | Account Title | Cell Reference | |||||||
| Account Title | Cell Reference | ||||||||
Solutions
ekkarill92 answered 2 years agoRelated Solutions
Panamerican Foods has Accounts Receivable of $230,000 and an Allowance for Doubtful Accounts of $13,000. If...
Panamerican Foods has Accounts Receivable of $230,000 and an
Allowance for Doubtful Accounts of $13,000. If it writes-off a
customer account balance of $1,300, what is the amount of its net
accounts receivable? Multiple Choice $217,000 None of the other
answers are correct. $215,700 $228,700 $230,000
Donovan Carrier Corp has an Accounts Receivable Balance of $1,065,000 and an Allowance for Doubtful Accounts...
Donovan Carrier Corp has an Accounts Receivable Balance of
$1,065,000 and an Allowance for Doubtful Accounts of $99,500 as of
12/31/18. In 2019, Donovan has credit sales of $2,900,000 and
collections on account of $3,020,000. They write-off $103,000 in
uncollectible accounts in 2019. Their financial manager estimates
14% of their accounts receivable will be uncollectible as of
12/31/19.
REQUIRED : Provide the journal entry for Donovan for the account
write-offs for 2019.
REQUIRED : Provide the adjusting journal entry for...
Donovan Carrier Corp has an Accounts Receivable Balance of $1,065,000 and an Allowance for Doubtful Accounts...
Donovan Carrier Corp has an Accounts Receivable Balance of
$1,065,000 and an Allowance for Doubtful Accounts of $99,500 as of
12/31/18. In 2019, Donovan has credit sales of $2,900,000 and
collections on account of $3,020,000. They write-off $103,000 in
uncollectible accounts in 2019. Their financial manager estimates
14% of their accounts receivable will be uncollectible as of
12/31/19.
REQUIRED : Provide the journal entry for Donovan for the
account write-offs for 2019.
REQUIRED : Provide the adjusting journal entry for...
What is the difference between Accounts Receivable and the Allowance for Doubtful Accounts and when the...
What is the difference between Accounts Receivable and the
Allowance for Doubtful Accounts and when the relationship can be
considered reasonable
Winstead & Company has Accounts receivable of $120,000 and a Debit balance of Allowance for Doubtful...
Winstead & Company has Accounts receivable of $120,000 and a
Debit balance of Allowance for Doubtful Accounts $1,000 in the
Allowance for Doubtful Accounts. and .The firm estimates that two
percent of the current accounts and five percent of the past due
account will prove to be uncollectible.
The adjusting entry to provide for the bad debts expenses under
the aging method should be for what amount?
Would an increase tax payable or allowance for doubtful accounts has increased and gross accounts receivable...
Would an increase tax payable or allowance for doubtful accounts
has increased and gross accounts receivable remains the same make
net income exceed operating cash flows at year end
ABC Company reported accounts receivable of $225,000 and an allowance for doubtful accounts with a $28,000...
ABC Company reported accounts receivable of $225,000 and an
allowance for doubtful accounts with a $28,000 credit balance on
January 1, 2017. ABC Company records bad debt expense using the net
credit sales method. The following information was available for
ABC Company for the years 2017 and 2018:
2017
2018
Cash collections from customers
?
275,870
Recoveries
3,600
6,760
Net realizable value at December 31
127,180
154,240
Accounts receivable turnover ratio
2.4
1.80
Sales revenue
468,000
?
% of sales...
The following information is provided regarding Garry Limited’s accounts receivable and allowance for doubtful accounts: Accounts...
The following information is provided regarding Garry Limited’s
accounts receivable and allowance for doubtful accounts:
Accounts Receivable, January 1, 2019 $1,450,000
Collections of Accounts Receivable during the year
$1,700,000
Write-offs of Accounts Receivable $ 425,000
Accounts Receivable December 31, 2019 $1,800,000
Allowance for Doubtful Accounts (December 31, 2019 balance
(before bad debts adjusting entry at December 31,
2019) $ 155,000(debit)
Required:
(a) Calculate the credit sales for the year 2019.
(b) Provide the journal entry that was made to write-off...
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...
Cash 5,633,555 Accounts Receivable 190,000 Allowance for Doubtful Accounts 13,300 Merchandise Inventory ...
Cash
5,633,555
Accounts
Receivable
190,000
Allowance
for Doubtful Accounts
13,300
Merchandise Inventory
1,454,919
Parts
inventory
437,900
Prepaid
insurance
20,667
Supplies
39,520
Short
term Investments, FV-NI
390,000
Assets
held for sale, fair value
190,000
Investments, FV-OCI
845,000
Building
2,200,000
Accumulated Depreciation: Building
1,540,000
Land
1,845,000
Vehicles
252,000
Accumulated Depreciation: Vehicles
138,600
Equipment
2,640,000
Accumulated Depreciation: Equipment
1,188,000
Bank
loan
654,714
Accounts
payable
...
ADVERTISEMENT
ADVERTISEMENT
Latest Questions
- What are the options that might be considered in relation to introducing flexible work practices? What...
- Question 2 : Aggregate Scores: Write a program that opens 2 files, quiz.txt, and hw.txt. The...
- Define the term symbiosis specifically as it applies in a biological context. Compare and contrast parasitism,...
- A research team conducted a study showing that approximately 20% of all businessmen who wear ties...
- Research the internet for companies that have executed data science projects. Pick one company and describe...
- Explain two theories or frameworks for understanding how Western Europe emerged out of 1,000 years of...
- Two cannons are mounted as shown in the drawing and rigged to fire simultaneously. They are...
ADVERTISEMENT