Below is the “totals” section of XYZ Corporation’s full ageing schedule. XYZ will be using this...

Below is the “totals” section of XYZ Corporation’s full ageing schedule. XYZ will be using this information to estimate uncollectible accounts receivable at year-end.

			Number of Days Outstanding
	Total	0-30	31-60	61-90	91-120	Over 120
Accounts receivable	$ 375,000	$ 220,000	$ 90,000	$ 30,000	$ 20,000	$ 15,000
% uncollectible		1%	4%	5%	9%	20%
Estimate bad debts

Instructions

(a)	Calculate the total estimated bad debts based on the above information.
(b)	Prepare the year-end adjusting journal entry to record the bad debts using the allowance method and the aged uncollectible accounts receivable determined in (a). Assume the current balance in Allowance for Doubtful Accounts is a $3,000 credit.
(c)	Prepare the year-end adjusting journal entry to record the bad debts using the allowance method and the aged uncollectible accounts receivable determined in (a). Assume the current balance in Allowance for Doubtful Accounts is a $500 debit.

(d)	Of the above accounts, $1,800 is determined to be specifically uncollectible. Prepare the journal entry to write off the uncollectible accounts.
(e)	The company subsequently collects $700 on a specific account that had previously been determined to be uncollectible in (d). Prepare the journal entry(ies) necessary to restore the account and record the cash collection.

(f)	In your own words, explain how establishing an allowance account satisfies the expense recognition principle.

Expert Solution

ekkarill92 answered 1 year ago

Below is the “totals” section of XYZ Corporation’s full aging schedule. XYZ will be using this...

Below is the “totals” section of XYZ Corporation’s full aging schedule. XYZ will be using this information to estimate uncollectible accounts receivable at year-end Number of Days Outstanding Total 0-30 31-60 61-90 91-120 Over 120 Accounts receivable $ 375,000 $ 220,000 $ 90,000 $ 30,000 $ 20,000 $ 15,000 % uncollectible 1% 4% 5% 9% 20% Estimate bad debts Instructions: Calculate the total estimated bad debts based on the above information. Prepare the year-end adjusting journal entry to record the...

Section B: Using the financial statements of XYZ Furnishings (below), comment on your interpretation of the...

Section B: Using the financial statements of XYZ Furnishings (below), comment on your interpretation of the financial health of the company. There is a maximum of 10 marks available for this section, four marks for your knowledge and understanding of the financial statements, four marks for your analysis and evaluation and 2 marks for your communication. Statement of Financial Position Assets Current Cash and equivalents 220 Trade receivables 8,420 Other receivables 10 Inventories 1,000 ST Investments 160 Non-Current Land and...

Ageing changes function of the human body. Discuss two changes in each section of the digestive...

Ageing changes function of the human body. Discuss two changes in each section of the digestive tract and the associated implications on major function of the digestive system. Provide at least five examples with detail explanation.

XYZ Enterprises needs to schedule operations for the next six months. Create a Master Schedule including...

XYZ Enterprises needs to schedule operations for the next six months. Create a Master Schedule including calculating Available-to-Promise (ATP) Inventory for each time period in the scheduling horizon using the following information: Beginning Inventory of 60 units; Forecasted Demand of 40 units per period; Standard Production Quantity of 50 units, and confirmed Customer Orders of 42 units for Month 1, 35 units for Month 2, 10 units for Month 3, and 5 units for Month 4.

Assume that XYZ tires has the following totals on its balance sheet: Assets: $100,000 Liabilities: $40,000...

Assume that XYZ tires has the following totals on its balance sheet: Assets: $100,000 Liabilities: $40,000 XYZ Tires now borrows $50,000 from the bank. 1. How will the totals for assets and liabilities be affected by the loan? Explain. 2. Is the borrowing a good idea for the business? Why or why not? 3. How might the business use the $50,000? 4. What other information would be useful to have before deciding to take out the loan?

XYZ Corporation’s Email-Retention Policy Due to new laws and compliance, XYZ Corporation has implemented a corporate-wide...

XYZ Corporation’s Email-Retention Policy Due to new laws and compliance, XYZ Corporation has implemented a corporate-wide email-retention policy. This policy defines archiving expectations for users of the corporate email system. This policy is owned and updated by the Information Technology Security Director. As stated, all email communications on XYZ Corporation’s email and messaging systems are subject to review. This review can occur for regulatory reasons as well as unlawful use. All users are subject to this policy and should follow...

The scientists are using zebrafish as model organism to study ageing base on tissue regeneration and...

The scientists are using zebrafish as model organism to study ageing base on tissue regeneration and telomere. Compound X and Y are told to be able to decrease the rate of dementia and ageing. Please make a simple research proposal, clearly state out the hypothesis and tell me 3 objective of it to study ageing.

Using the schedule of cash flows and other information below, estimate the firm's value of operations...

Using the schedule of cash flows and other information below, estimate the firm's value of operations by discounting the cash flows back to the present (time value of money formula) Compute the value of operations a second way by using the NPV formula in Excel FCFF See cash flow schedule WACC 18% Debt 75 million Number of shares 100 million show excel formulas Time FCFF, millions 0 1 -2 2 10 3 18 4 30 5 52 6 56 7...

Using the adjusted trial balance below prepare the asset section of the balance by drag and...

Using the adjusted trial balance below prepare the asset section of the balance by drag and dropping the appropriate word or number. ABC Co. WORKSHEET FOR THE YEAR ENDED DECEMBER 31, 2019 ADJUSTED TRIAL BALANCE ACCOUNT TITLES DEBIT ($) CREDIT ($) Accounts Payable $ 23,800 Accounts Receivable $ 23,600 Accumulated depreciation - Vehicles $ 30,000 Advertising Expense $ 5,000 Capital, Kory...

The stockholders’ equity section of Indigo Corporation’s balancesheet at December 31 is presented here.Balance...

The stockholders’ equity section of Indigo Corporation’s balance sheet at December 31 is presented here.Balance Sheet (partial) Stockholders' equity Paid-in capital Preferred stock, cumulative, 11,800 shares authorized, 7,100 shares issued and outstanding $ 710,000Common stock, no par, 725,000 shares authorized, 555,000 shares issued 1,665,000Total paid-in capital ...

Question