Question

In: Accounting

An aging analysis of Yamoto Limited’s accounts receivable at December 31, 2018 and 2017, showed the...

An aging analysis of Yamoto Limited’s accounts receivable at December 31, 2018 and 2017, showed the following:

Number of Days Outstanding

Accounts Receivable

Estimated Percentage Uncollectible

2018

2017

0-30 days

$300,000

$320,000

3%

31-61 days

64,000

114,000

6%

61-90 days

86,000

76,000

12%

Over 90 days

130,000

50,000

24%

Total

$580,000

$560,000

Additional information:

1. At December 31, 2017, the unadjusted balance in Allowance for Doubtful Accounts was a credit of $9,000.

2. In 2018, $42,000 of accounts were written off as uncollectible and $3,000 of accounts previously written off were recovered.

Required:

a. Prepare an aging schedule to calculate the estimated uncollectible accounts at December 31, 2017 and 2018. Note that the estimated percentage uncollectible are the same for both years.

b. Record the adjusting entry relating to bad debts on December 31,2017.

c. Record the write off of uncollectible accounts in 2018.

d. Record the collection of accounts previously written off in 2018.

e. Prepare the adjusting entry relating to bad debts on December 31, 2018.

f. Calculate the carrying amount (net realizable value) of Yamoto’s accounts receivable at December 31, 2017 and 2018.

Solutions

Expert Solution

ekkarill92 answered 1 year ago
Next > < Previous

Related Solutions

An aging analysis of Yamoto Limited’s accounts receivable at December 31, 2018 and 2017, showed the...
An aging analysis of Yamoto Limited’s accounts receivable at December 31, 2018 and 2017, showed the following: Number of Days Outstanding Accounts Receivable Estimated Percentage Uncollectible 2018 2017 0-30 days $300,000 $320,000 3% 31-61 days 64,000 114,000 6% 61-90 days 86,000 76,000 12% Over 90 days 130,000 50,000 24% Total $580,000 $560,000 Additional information: 1. At December 31, 2017, the unadjusted balance in Allowance for Doubtful Accounts was a credit of $9,000. 2. In 2018, $42,000 of accounts were written...
An aging analysis of Pharoah Company’s accounts receivable at December 31, 2020 and 2021, showed the...
An aging analysis of Pharoah Company’s accounts receivable at December 31, 2020 and 2021, showed the following: Accounts Receivable Number of Days Outstanding Estimated %Uncollectible 2021 2020 0–30 days 3% 126,000 155,000 31–60 days 7% 31,500 77,500 61–90 days 13% 63,000 46,500 Over 90 days 40% 94,500 31,000 Total    $315,000 $310,000 Additional information: 1. At December 31, 2020, the unadjusted balance in Allowance for Doubtful Accounts was a credit of $6,200. 2. In 2021, $26,700 of accounts was written off...
The Accounts Receivable balance for Gold​, Inc. at December​ 31, 2017​, was $27,000. During 2018​, Gold...
The Accounts Receivable balance for Gold​, Inc. at December​ 31, 2017​, was $27,000. During 2018​, Gold earned revenue of 461,000 on account and collected $326,000 on account. Gold wrote off $6,400 receivables as uncollectible. Industry experience suggests that uncollectible accounts will amount to 2​% of accounts receivable. 1. Assume Gold had an unadjusted $1,800 credit balance in Allowance for Bad Debts at December ​31, 2018. Journalize Gold​'s December ​31, 2018​, adjustment to record bad debts expense using the​ percent-of-receivables method....
Kyla Co. prepared an aging of its accounts receivable at December 31, 2020 and determined that...
Kyla Co. prepared an aging of its accounts receivable at December 31, 2020 and determined that the net realizable value of the receivables was $580,000. Additional information for calendar 2020 follows: Allowance for doubtful accounts, Jan 1 $68,000 (cr.) Uncollectible account written off during year 46,000 Bad debt expense for 2020 28,000 Uncollectible accounts recovered during year 10,000            At the year end December 31, 2020, Kyla Co.’s Accounts receivable balance should be 1) $640,000.00 2) $658,000.00 3) $644,000.00 4)...
(Accounts receivable and uncollectible accounts—aging of receivables method) On December 31, 2019, Ajacks Company reported the...
(Accounts receivable and uncollectible accounts—aging of receivables method) On December 31, 2019, Ajacks Company reported the following information in its financial statements: Accounts receivable $1,193,400 Allowance for doubtful accounts 81,648 Bad debts expense 80,448 During 2020, the company had the following transactions related to receivables: a. Sales were $10,560,000, of which $8,448,000 were on account. b. Collections of accounts receivable were $7,284,000. c. Writeoffs of accounts receivable were $78,000. d. Recoveries of accounts previously written off as uncollectible were $8,100....
The following data is given: December 31, 2018 2017 Cash $66,500 $49,500 Accounts receivable (net) 90,000...
The following data is given: December 31, 2018 2017 Cash $66,500 $49,500 Accounts receivable (net) 90,000 59,000 Inventories 90,000 105,000 Plant assets (net) 382,500 324,000 Accounts payable 55,500 39,500 Salaries and wages payable 12,000 5,500 Bonds payable 68,500 72,000 8% Preferred stock, $40 par 100,000 100,000 Common stock, $10 par 120,000 90,000 Paid-in capital in excess of par 75,000 70,000 Retained earnings 198,000 160,500 Net credit sales 995,000 Cost of goods sold 740,000 Net income 82,000 Compute the following ratios:...
v Sell on Credit Corp. Accounts receivable — Aging report As at December 31, 20X7 Days...
v Sell on Credit Corp. Accounts receivable — Aging report As at December 31, 20X7 Days outstanding 0-30 31-60 61-90 91 and over Total All Design Inc. 38,600 38,600 Brio Developments 26,400 15,900 42,300 Cremore Construction 5,700 5,700 Darius Inc. 131,500 3,000 134,500 Everything Rentals 86,500 12,300 98,800 Frieda's HVAC 52,500 52,500 Great Big Equipment 8,700 1,300 10,000 Hari Technical Design 16,700 16,700 Inland Surveyors Inc. 3,700 3,700 Klampett Fashions 13,600 4,200 17,800 Lomar Fine Furniture 85,000 4,800 89,800 Overland...
Financial Statements A list of accounts for Lloyd Inc. at December 31, 2017, follows: Accounts Receivable...
Financial Statements A list of accounts for Lloyd Inc. at December 31, 2017, follows: Accounts Receivable $56,359 Net purchases $61,608 Advertising Expense 12,900 Retained Earnings, January 1, 2017 28,252 Capital Stock 50,000 Salaries Payable 650 Cash 22,340 Net sales 111,760 Dividends 6,000 Transportation-In 375 Income Tax Expense 1,450 Utilities Expense 1,800 Income Tax Payable 1,450 Wages and Salaries Expense 23,000 Inventory: Wages Payable 120    January 1, 2017 6,400    December 31, 2017 5,900 1. Determine cost of goods sold for 2017....
A summary of Klugman Company's December 31, 2021, accounts receivable aging schedule is presented below along...
A summary of Klugman Company's December 31, 2021, accounts receivable aging schedule is presented below along with the estimated percent uncollectible for each age group: Age Group Amount % 0–60 days $ 68,000 0.5 61–90 days 26,000 1.0 91–120 days 3,800 10.0 Over 120 days 1,200 50.0 The allowance for uncollectible accounts had a balance of $1,480 on January 1, 2021. During the year, bad debts of $830 were written off. Required: Prepare all journal entries for 2021 with respect...
Oriole Co. uses an aging schedule at December 31. Number of Days Outstanding Accounts Receivable Estimated...
Oriole Co. uses an aging schedule at December 31. Number of Days Outstanding Accounts Receivable Estimated % Uncollectible Estimated Uncollectible Accounts 0–30 days $264,600 1% $2,646 31-60 days 71,300 5% 3,565 61-90 days 45,400 11% 4,994 Over 90 days 21,600 19% 4,104 Total $402,900 $15,309 A) Assuming the allowance for doubtful accounts has an unadjusted credit balance of $4,980 at December 31, what is the bad debt expense for the year? Bad debt expense $enter the Bad debt expense in...
ADVERTISEMENT
Subjects
ADVERTISEMENT
Latest Questions
ADVERTISEMENT