Question

In: Accounting

Crell Computers categorizes its accounts receivable into four age groups for purposes of estimating its allowance...

Crell Computers categorizes its accounts receivable into four age groups for purposes of estimating its allowance for uncollectible accounts.
1. Accounts not yet due = $60,000; estimated uncollectible = 5%.
2. Accounts 1–30 days past due = $15,000; estimated uncollectible = 10%.
3. Accounts 31–60 days past due = $10,000; estimated uncollectible = 20%.
4. Accounts more than 60 days past due = $5,000; estimated uncollectible = 30%.
 
What should be the balance in Crell's allowance for uncollectible accounts?
 
Allowance for uncollectible accounts = _______ 

Solutions

Expert Solution

Allowance for uncollectable accounts = $8,000

Working

Age and amount of Accounts receivable Estimated percentage Uncollectible Estimated Amount Uncollectible
Not yet due $   60,000.00 5% $     3,000.00
Up to 30 days past due $   15,000.00 10% $     1,500.00
31-60 days past due $   10,000.00 20% $     2,000.00
Over 60 days past due $     5,000.00 30% $     1,500.00
Estimated balance in allowance for doubtful accounts $     8,000.00

ekkarill92 answered 2 years ago
Next > < Previous

Related Solutions

Zuo Software categorizes its accounts receivable into four age groups for purposes of estimating its allowance...
Zuo Software categorizes its accounts receivable into four age groups for purposes of estimating its allowance for uncollectible accounts. 1. Accounts not yet due = $446,000; estimated uncollectible = 20%. 2. Accounts 1–30 days past due = $55,800; estimated uncollectible = 23%. 3. Accounts 31–90 days past due = $44,600; estimated uncollectible = 26% 4. Accounts more than 90 days past due = $33,500; estimated uncollectible = 29%.At 12/31/2021, before recording any adjustments, Zuo has a credit balance of $26,800 in its allowance for...
Zuo Software categorizes its accounts receivable into four age groups for purposes of estimating its allowance...
Zuo Software categorizes its accounts receivable into four age groups for purposes of estimating its allowance for uncollectible accounts. Accounts not yet due = $402,000; estimated uncollectible = 10%. Accounts 1–30 days past due = $50,300; estimated uncollectible = 14%. Accounts 31–90 days past due = $40,200; estimated uncollectible = 18% Accounts more than 90 days past due = $30,100; estimated uncollectible = 22%. At 12/31/2021, before recording any adjustments, Zuo has a credit balance of $20,300 in its allowance...
Dhaliwal Digital categorizes its accounts receivable into three age groups for purposes of estimating its allowance...
Dhaliwal Digital categorizes its accounts receivable into three age groups for purposes of estimating its allowance for uncollectible accounts. 1. Accounts not yet due $285,000; estimated uncollectible = 5% . 2. Accounts 1-45 days past due $39,600; estimated uncollectible = 10% 3. Accounts more than 45 days past due $15,800; estimated uncollectible = 15% Before recording any adjustments, Dhaliwal has a debit balance of $71,100 in its allowance for uncollectible accounts. Required: 1. Estimate the appropriate 12/31/2021 balance for Dhaliwal's allowance for uncollectible accounts. 2. What journal...
Dhaliwal Digital categorizes its accounts receivable into three age groups for purposes of estimating its allowance...
Dhaliwal Digital categorizes its accounts receivable into three age groups for purposes of estimating its allowance for uncollectible accounts. Accounts not yet due = $170,000; estimated uncollectible = 10%. Accounts 1–45 days past due = $23,600; estimated uncollectible = 15%. Accounts more than 45 days past due = $9,400; estimated uncollectible = 20%. Before recording any adjustments, Dhaliwal has a debit balance of $42,300 in its allowance for uncollectible accounts. Required: 1. Estimate the appropriate 12/31/2021 balance for Dhaliwal’s allowance...
Dhaliwal Digital categorizes its accounts receivable into three age groups for purposes of estimating its allowance for uncollectible accounts
Dhaliwal Digital categorizes its accounts receivable into three age groups for purposes of estimating its allowance for uncollectible accounts. 1. Accounts not yet due = $180,000, estimated uncollectible = 15%. 2. Accounts 1-45 days past due $25,000, estimated uncollectible = 20%. 3. Accounts more than 45 days past due $10,000, estimated uncollectible = 25%. Before recording any adjustments, Dhaliwal has a debit balance of $45,100 in its allowance for uncollectible accounts Required: 1. Estimate the appropriate 12/31/2021 balance for Dhaliwal's allowance for uncollectible accounts 2. What journal...
Dhaliwal Digital categorizes its accounts receivable into three age groups for purposes of estimating its allowance for uncollectible accounts.
Exercise 7-13 (Algo) Calculate uncollectible accounts using the aging method; record adjustment (L07-5, 7-6) Dhaliwal Digital categorizes its accounts receivable into three age groups for purposes of estimating its allowance for uncollectible accounts. 1. Accounts not yet du 106,000; estimated uncollectible = 10% 2. Accounts 1-45 days due - $14,700; estimated uncollectible = 15% 3. Accounts more than 45 days past due $5,900; estimated uncollectible = 20%.Before recording any adjustments, Dhaliwal has a debit balance of $26,700 in its allowance for uncollectible accounts. Required: 1. Estimate...
Aging of Receivables; estimating allowance for doubtful accounts Aging of receivables; estimating allowance for doubtful accounts...
Aging of Receivables; estimating allowance for doubtful accounts Aging of receivables; estimating allowance for doubtful accounts Fishy Fish company supplies flies and fishing gear to sporting goods stores and outfitters throughout the western United States. The accounts receivable clerk for Fishy Fish prepared the following partially completed aging of receivables schedule as of the end of business on December 31, 2015: A B C D E F G H 1 Not past Due Days Past Due 2 3 Customer Balance...
Estimating Uncollectible Accounts and Reporting Accounts Receivable Collins Company analyzes its accounts receivable at December 31,...
Estimating Uncollectible Accounts and Reporting Accounts Receivable Collins Company analyzes its accounts receivable at December 31, and arrives at the aged categories below along with the percentages that are estimated as uncollectible. Age Group Accounts Receivable Estimated Loss % 0-30 days past due $110,000 1% 31-60 days past due 40,000 2 61-120 days past due 27,000 5 121-180 days past due 14,000 10 Over 180 days past due 9,000 25 Total accounts receivable $200,000 The balance of the allowance for...
Explain the percentage of accounts receivable and the accounts receivable aging allowance methods.
Explain the percentage of accounts receivable and the accounts receivable aging allowance methods.
Johnson Company calculates its allowance for uncollectible accounts as 5% of its ending balance in gross accounts receivable.
Exercise 7-11 (Algo) Uncollectible accounts; allowance method vs. direct write-off method [LO7-5, 7-6) Johnson Company calculates its allowance for uncollectible accounts as 5% of its ending balance in gross accounts receivable. The allowance for uncollectible accounts had a credit balance of $20,000 at the beginning of 2021. No previously written-off accounts receivable were reinstated during 2021. At 12/31/2021, gross accounts receivable totaled $333,400, and prior to recording the adjusting entry to recognize bad debts expense for 2021, the allowance for uncollectible...
ADVERTISEMENT
Subjects
ADVERTISEMENT
Latest Questions
ADVERTISEMENT