On December 31, Jarden Co.'s Allowance for Doubtful Accounts has an unadjusted credit balance of $14,500....

On December 31, Jarden Co.'s Allowance for Doubtful Accounts has an unadjusted credit balance of $14,500. Jarden prepares a schedule of its December 31 accounts receivable by age.

Accounts Receivable		Age of Accounts Receivable	Expected Percent Uncollectible
$	840,000	Not yet due	1.25	%
	336,000	1 to 30 days past due	2.00
	67,200	31 to 60 days past due	6.50
	33,600	61 to 90 days past due	32.75
	13,440	Over 90 days past due	68.00

Required:
1. Compute the required balance of the Allowance for Doubtful Accounts at December 31.

2. Prepare the adjusting entry to record bad debts expense at December 31. (Round percentage answers to nearest whole percent. Do not round intermediate calculations.)

No	Date	General Journal	Debit	Credit
1	Dec 31	Bad debts expense
		Allowance for doubtful accounts

3. On June 30 of the next year, Jarden concludes that a customer’s $3,850 receivable is uncollectible and the account is written off. Does this write off directly affect Jarden's net income?

The following transactions are from Ohlm Company. (Use 360 days a year.)

Year 1

Dec.		16		Accepted a $11,500, 60-day, 9% note in granting Danny Todd a time extension on his past-due account receivable.
		31		Made an adjusting entry to record the accrued interest on the Todd note.

Year 2

Feb.	14	Received Todd’s payment of principal and interest on the note dated December 16.
Mar.	2	Accepted a(n) $6,000, 9%, 90-day note in granting a time extension on the past-due account receivable from Midnight Co.
	17	Accepted a(n) $3,400, 30-day, 7% note in granting Ava Privet a time extension on her past-due account receivable.
Apr.	16	Privet dishonored her note.
May	31	Midnight Co. dishonored its note.
Aug.	7	Accepted a(n) $8,750, 90-day, 10% note in granting a time extension on the past-due account receivable of Mulan Co.
Sep.	3	Accepted a(n) $3,650, 60-day, 10% note in granting Noah Carson a time extension on his past-due account receivable.
Nov.	2	Received payment of principal plus interest from Carson for the September 3 note.
Nov.	5	Received payment of principal plus interest from Mulan for the August 7 note.
Dec.	1	Wrote off the Privet account against the Allowance for Doubtful Accounts.

Required:
1-a. First, complete the table below to calculate the interest amount at December 31, Year 1.
1-b. Use the calculated value to prepare your journal entries for Year 1 transactions.
1-c. First, complete the table below to calculate the interest amounts.
1-d. Use those calculated values to prepare your journal entries for Year 2 transactions.
2. If Ohlm pledged its receivables as security for a loan from the bank, where on the financial statements does it disclose this pledge of receivables?

Expert Solution

Answer to Question 1 and 2:

Answer to Question 3:

ekkarill92 answered 1 year ago

On December 31, Jarden Co.'s Allowance for Doubtful Accounts has an unadjusted credit balance of $15,000.

On December 31, Jarden Co.'s Allowance for Doubtful Accounts has an unadjusted credit balance of $15,000. Jarden prepares a schedule of its December 31 accounts receivable by age. Accounts Receivable Age ofAccounts Receivable Expected PercentUncollectible $ 800,000 Not yet due 1.30 % 320,000 1 to 30 days past due 2.05 64,000 31 to 60 days past due 6.55 32,000 61 to 90 days past due 33.00 12,800 Over 90 days past due 69.00...

On December 31, Josh's Co. allowance for Doubtful Accounts has an unadjusted credit balance of $15,000....

On December 31, Josh's Co. allowance for Doubtful Accounts has an unadjusted credit balance of $15,000. Josh prepares a schedule of its December 31 accounts receivable by age. Accounts Receivable Age of Accounts Receivable Expected Percent Uncollectible $ 900,000 Not yet due 1.35 % 360,000 1 to 30 days past due 2.10 72,000 31 to 60 days past due 6.60 36,000 61 to 90 days past due 33.25 14,400 Over 90 days past due 69.00 1A. Compute the required balance...

Winfrey Designs had an unadjusted credit balance in its Allowance for Doubtful Accounts at December 31,...

Winfrey Designs had an unadjusted credit balance in its Allowance for Doubtful Accounts at December 31, 2017, of $2,200. Required: a. Prepare the adjusting entry assuming that Winfrey estimates uncollectible accounts based on an aging analysis as follows. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) December 31, 2017 Accounts Receivable Age of Accounts Receivable Expected Percentage Uncollectible $ 148,000 Not due (under 30 days) 1 % 43,000 1 to...

Kiley Company had a $600 credit balance in Allowance for Doubtful Accounts at December 31, 2018,...

Kiley Company had a $600 credit balance in Allowance for Doubtful Accounts at December 31, 2018, before the current year's provision for uncollectible accounts. Aging of the accounts receivable revealed the following: Estimated Percentage Uncollectible Current accounts 120,000 1% 1-30 days past due 12,000 3% 31-60 days past due 10,000 6% 61-90 days past due 5,000 12% Over 90 days past due 8,000 30% Total Accounts Receivable 155,000 (a) Prepare the adjusting entry on December 31, 2018, to recognize bad debts...

Question 2 a.) Allowance for Doubtful Accounts has an unadjusted balance of $500 at the end...

Question 2 a.) Allowance for Doubtful Accounts has an unadjusted balance of $500 at the end of the year, and uncollectible accounts expense is estimated at 1% of net sales. If net sales are $900,000, the amount of the adjustment to record the provision for doubtful accounts is: Select one: $9,500 $500 $8,500 $9,000 b.)Allowance for Doubtful Accounts has an unadjusted balance of $400 at the end of the year, and uncollectible accounts expense is estimated at 1% of net...

Allowance for Doubtful Accounts has a credit balance of $500 at the end of the year...

Allowance for Doubtful Accounts has a credit balance of $500 at the end of the year (before adjustment), and bad debt expense is estimated at 2% of credit sales. If credit sales are $848,200, the amount of the adjusting entry to record the estimated uncollectible accounts receivable In the normal operation of business, you receive a check from a customer and deposit it into your checking account. With your bank statement, you are advised that this check for $775 is...

Question (5) Molina Company had a $700 credit balance in Allowance for Doubtful Accounts at December...

Question (5) Molina Company had a $700 credit balance in Allowance for Doubtful Accounts at December 31, 2016, before the current year's provision for uncollectible accounts. An aging of the accounts receivable revealed the following: Estimated Percentage Uncollectible Current Accounts $120,000 1% 1–30 days past due 20,000 3% 31–60 days past due 10,000 6% 61–90 days past due 10,000 12% Over 90 days past due 8,000 30% Total Accounts Receivable ...

On December 31, 2021, when its Allowance for Doubtful Accounts

On December 31, 2021, when its Allowance for Doubtful Accounts had a debit balance of $1,371, Tamarisk, Inc. estimates that 8% of its accounts receivable balance of $77,800 will become uncollectible and records the necessary adjustment to Allowance for Doubtful Accounts. On May 11, 2022, Tamarisk, Inc. determined that B. Jared's account was uncollectible and wrote off $1,135. On June 12, 2022, Jared paid the amount previously written off. Prepare the journal entries on December 31, 2021, May 11, 2022,...

At January 1, 2020, the credit balance of Cheyenne Corp.’s Allowance for Doubtful Accounts was $406,500....

At January 1, 2020, the credit balance of Cheyenne Corp.’s Allowance for Doubtful Accounts was $406,500. During 2020, the bad debt expense entry was based on a percentage of net credit sales. Net sales for 2020 were $80 million, of which 89% were on account. Based on the information available at the time, the 2020 bad debt expense was estimated to be 0.80% of net credit sales. During 2020, uncollectible receivables amounting to $500,000 were written off against the allowance...

On December 31, 2013, when its Allowance for Doubtful accounts had a debit balance of $1,400,...

On December 31, 2013, when its Allowance for Doubtful accounts had a debit balance of $1,400, Hunt co. estimates that 9% of its accounts receivable balance of $90000 will become uncollectible and records the necessary adjustment to Allowance for Doubtful Accounts. On may 11, 2014, Hunt Co. determined that J. Byrd's account was uncollectible and wrote of $1,200. On June 12, 2014, Byrd paid the amount previously written off. Prepare the journal entries on December 31, 2013, May 11, 2014,...

Question