Question
In: Accounting
Module 4: Chatter Corporation operates in an industry that has a high rate of bad debts....
Module 4: Chatter Corporation operates in an industry that has a high rate of bad debts. Before any year-end adjustments, the balance in Chatter’s accounts receivable account is $556,000, and the allowance for doubtful accounts has a debit balance of $5,000. The year-end balance reported in the balance sheet for the allowance for doubtful accounts will be based on the aging schedule shown here:
|
Days Account Outstanding |
Amount |
Probability of Collection |
|
Less than 16 days |
$293,000 |
.97 |
|
Between 16 and 30 days |
102,000 |
.89 |
|
Between 31 and 45 days |
70,000 |
.83 |
|
Between 46 and 60 days |
55,000 |
.76 |
|
Between 61 and 75 days |
28,000 |
.60 |
|
Over 75 days |
8,000 |
.30 |
What is the appropriate balance for the allowance for doubtful accounts at year end?
Show how accounts receivable would be presented on the balance sheet.
What is the dollar effect of the year-end bad debt adjustment on the before-tax income?
Please include work, I need to understand for my coming up exam, thank you!
Solutions
2.
ekkarill92 answered 1 year agoRelated Solutions
Shamrock Corporation operates in an industry that has a high rate of bad debts. Before any...
Shamrock Corporation operates in an industry that has a high
rate of bad debts. Before any year-end adjustments, the balance in
Shamrock's Accounts Receivable account was $585,400 and Allowance
for Doubtful Accounts had a credit balance of $42,510. The year-end
balance reported in the balance sheet for Allowance for Doubtful
Accounts will be based on the aging schedule shown below.
Days Account Outstanding
Amount
Probability of
Collection
Less than 16 days $313,200 0.98
Between 16 and 30 days 112,600 0.90...
Metlock Corporation operates in an industry that has a high rate of bad debts. Before any...
Metlock Corporation operates in an industry that has a high rate
of bad debts. Before any year-end adjustments, the balance in
Metlock's Accounts Receivable account was $592,400 and Allowance
for Doubtful Accounts had a credit balance of $44,820. The year-end
balance reported in the balance sheet for Allowance for Doubtful
Accounts will be based on the aging schedule shown below.
Days Account Outstanding
Amount
Probability of
Collection
Less than 16 days $315,900 0.97
Between 16 and 30 days 116,800 0.90...
Pearl Corporation operates in an industry that has a high rate of bad debts. Before any...
Pearl Corporation operates in an industry that has a high rate
of bad debts. Before any year-end adjustments, the balance in
Pearl's Accounts Receivable account was $593,800 and Allowance for
Doubtful Accounts had a credit balance of $44,400. The year-end
balance reported in the balance sheet for Allowance for Doubtful
Accounts will be based on the aging schedule shown below. Days
Account Outstanding Amount Probability of Collection Less than 16
days $314,200 0.97 Between 16 and 30 days 118,700 0.90...
Manilow Corporation operates in an industry that has a high rate of bad debts. Before any...
Manilow Corporation operates in an industry that has a high rate
of bad debts. Before any year‐end adjustments, the balance in
Manilow’s Accounts Receivable account was $650,000 and Allowance
for Doubtful Accounts had a credit balance of $45,500. The year‐end
balance reported in the balance sheet for Allowance for Doubtful
Accounts will be based on the aging schedule shown below. The
amount of accounting receivable write‐offs during the year in the
amount of $19,500 has not been recorded yet.
Days...
Manilow Corporation operates in an industry that has a high rate of bad debts. Before any...
Manilow Corporation operates in an industry that has a high rate
of bad debts. Before any year-end adjustments, the balance in
Manilow's Accounts Receivable account was $555,000 and Allowance
for Doubtful Accounts had a credit balance of $40,000. The year-end
balance reported in the balance sheet for Allowance for Doubtful
Accounts will be based on the aging schedule shown below.
Days Account Outstanding
Amount
Probability of
Collection
Less than 16 days
$300,000
0.98
Between 16 and 30 days
100,000
0.90...
Kingbird Corporation operates in an industry that has a high rate of bad debts. Before any...
Kingbird Corporation operates in an industry that has a high
rate of bad debts. Before any year-end adjustments, the balance in
Kingbird's Accounts Receivable account was $593,900 and Allowance
for Doubtful Accounts had a credit balance of $40,480. The year-end
balance reported in the balance sheet for Allowance for Doubtful
Accounts will be based on the aging schedule shown below.
Days Account Outstanding
Amount
Probability of
Collection
Less than 16 days
$314,700
0.98
Between 16 and 30 days
118,900
0.90...
Manilow Corporation operates in an industry that has a high rate of bad debts. Before any...
Manilow Corporation operates in an
industry that has a high rate of bad debts. Before any year-end
adjustments, the balance in Manilow's Accounts Receivable was
$555,000 and Allowance for Doubtful Accounts had a credit balance
of $40,000. The year-end balance reported in the statement of
financial position for Allowance for Doubtful Accounts will be
based on the aging schedule shown below.
Days Account Outstanding
Amount
Probability of Collection
Less than 16 days
$300,000
.98
16–30 days
100,000
.90
31–45 days
...
Option #1: Bad Debts Paisley Corporation operates in an industry that has a high rate of...
Option #1: Bad Debts
Paisley Corporation operates in an industry that has a high rate
of bad debts. The year-end balance reported in the balance sheet
for the Allowance for Doubtful Accounts will be based on the aging
schedule shown below:
Days Account Outstanding
Amount
Probability of Not Collecting
Less than 16 days
$351,600
.03
Between 16 and 30 days
122,400
.11
Between 31 and 45 days
84,000
.17
Between 46 and 60 days
66,000
.24
Between 61 and 75...
Manilow Company in an industry that has a high rate of bad debts. Before any year-end...
Manilow Company in an industry that has a high rate of bad
debts. Before any year-end adjustments, the balance in Manilow's
Accounts Receivable account was $593,900 and Allowance for Doubtful
Accounts had a credit balance of $40,480. The year-end balance
reported in the balance sheet for Allowance for Doubtful Accounts
will be based on the aging schedule shown below.
1. What is the appropriate balance for Allowance for Doubtful
Accounts at year-end?
2. Show how accounts receivable would be presented...
Problem 7-3 (Part Level Submission) Pearl Corporation operates in an industry that has a high rate...
Problem 7-3 (Part Level Submission) Pearl Corporation operates
in an industry that has a high rate of bad debts. Before any
year-end adjustments, the balance in Pearl's Accounts Receivable
account was $595,600 and Allowance for Doubtful Accounts had a
credit balance of $40,350. The year-end balance reported in the
balance sheet for Allowance for Doubtful Accounts will be based on
the aging schedule shown below. Days Account Outstanding Amount
Probability of Collection Less than 16 days $314,500 0.97 Between
16...
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