Looking for answers! Please include all the calculations for my study reference. Thanks in advance. b. Calculate bad debtOn December 31, after many attempts at collecting the outstanding balance of Copper Gallery,the controller decided to write off that balance.Aylmer calculates bad debt on trade receivables only, not on project receivables. Bad debt isestimated to be:0-30 days31 – 60 days 5.50%61 – 90 days 7.50%91 – 120 days 10.00%Over 120 days 16.00%1.30%In the Excel spreadsheet, see the tab labelled “Trade Accounts Receivable Detail" to perform anynecessary calculations. Customer NameTotal Due0-30 Days31-60 days 61-90 days 91-120 days Over 1204210119 Ont Ltd161,18155,89450,19950,0944,99443rd Street Place6,6256,4941316 Star Services9900 International Corp31,31050,98165,94465,67530,6993,666100,79249,811A1 Distributions130,73462,902944944Aylmer Enterprises77,81874,5863,232Booktime Services99,79799,643154Вox Tоp Inc49,0492,94213,03113,03113,0319,956Briar Forest Corp1,4431,499Cavhill Industries122,22361,99960,113111Colborne CorpCopper GalleryDairy Ashford Corp1,3131,31318,54018,540write off as indicated in notes6,4996,499Demilo Inc83,33636,78539,9416,610Dustin Enterprises190,81164,45264,16160,6441,554Greenway Place64,87331,54831,6611,664Grosvenor Limited13,8776,8447,033Houston Consultants48,4641,31910,69936,446Jesse Blackstone22,6809,8469,8461,4941,494Joseph Company101,40731,59936,51032,649649Lawrence Brothers58,56118,84619,84419,460411Mapleton Express19,04818,936112OKC Limited23,3769,8569,8563,664Oxford Distributing20,5359,88410,651Paper Brands105,79012,6369,66436,94446,546Plaid Corp38,63112,50012,50012,5001311,000Quality Logistics24,5652,1312,2362,0661,69116,441TC Jester100,66549,66649,6661,333Wellington Limited138,14465,47872,666Westella Drive LTD14,4106,9446,4111,055Woodplank Inc.1,0651,065Yellow Street Ltd1,328664664Zephyr Limited636318318TOTAL1,915,390859,389662,712283,94270,74738,600

Bad debt is an Associate in nursing expense that a business incurs once the compensation of credit…

b. Calculate bad debt On December 31, after many attempts at collecting the outstanding balance of Copper Gallery, the controller decided to write off that balance. Aylmer calculates bad debt on trade receivables only, not on project receivables. Bad debt is estimated to be: 0-30 days 31 – 60 days 5.50% 61 – 90 days 7.50% 91 – 120 days 10.00% Over 120 days 16.00% 1.30% In the Excel spreadsheet, see the tab labelled “Trade Accounts Receivable Detail" to perform any necessary calculations.

b. Calculate bad debt On December 31, after many attempts at collecting the outstanding balance of Copper Gallery, the controller decided to write off that balance. Aylmer calculates bad debt on trade receivables only, not on project receivables. Bad debt is estimated to be: 0-30 days 31 – 60 days 5.50% 61 – 90 days 7.50% 91 – 120 days 10.00% Over 120 days 16.00% 1.30% In the Excel spreadsheet, see the tab labelled “Trade Accounts Receivable Detail" to perform any necessary calculations.

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter9: Accounting For Receivables

Section: Chapter Questions

Problem 8MC: Conner Pride reports year-end credit sales in the amount of $567,000 and accounts receivable of...

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Conner Pride reports year-end credit sales in the amount of $567,000 and accounts receivable of $134,000. Conner uses the balance sheet method to report bad debt estimation. The estimation percentage is 4.6%. What is the estimated balance uncollectible using the balance sheet method? A. $26,082 B. $6,164 C. $260,820 D. $61,640
Bad Debt Expense: Aging Method Glencoe Supply had the following accounts receivable aging schedule at the end of a recent year. The balance in Glencoes allowance for doubtful accounts at the beginning of the year was $58,620 (credit). During the year, accounts in the total amount of $62,400 were written off. Required: 1. Determine bad debt expense. 2. Prepare the journal entry to record bad debt expense. 3. If Glencoe had written off $90,000 of receivables as uncollectible during the year, how much would bad debt expense reported on the income statement have changed?
Tines Commerce computes bad debt based on the allowance method. They determine their current years balance estimation to be a credit of $45,000. The previous period had a credit balance in Allowance for Doubtful Accounts of $12,000. What should be the reported figure in the adjusting entry for the current period? A. $12,000 B. $45,000 C. $33,000 D. $57,000
UNCOLLECTIBLE ACCOUNTSPERCENTAGE OF SALES Rossins Racers has total credit sales for the year of 280,000 and estimates that 3% of its credit sales will be uncollectible. Record the end-of-period adjusting entry on December 31, in general journal form, for the estimated bad debt expense. Assume the following independent conditions existed prior to the adjustment: 1. Allowance for Doubtful Accounts has al credit balance of 570. 2. Allowance for Doubtful Accounts has a debit balance of 360.
UNCOLLECTIBLE ACCOUNTS-PERCENTAGE OF SALES Nicoles Neckties has total credit sales for the year of 380,000 and estimates that 2% of its credit sales will be uncollectible. Record the end-of-period adjusting entry on December 31, in general journal form, for the estimated bad debt expense. Assume the following independent conditions existed prior to the adjustment: 1. Allowance for Doubtful Accounts has a credit balance of 430. 2. Allowance for Doubtful Accounts has a debit balance of 295.
Bad Debt Expense: Percentage of Credit Sales Method Gilmore Electronics had the following data for a recent year: Cash sales $135,000 Credit sales 512,000 Accounts receivable determined to be uncollectible 9,650 The firms estimated rate for bad debts is 2.2% of credit sales. Required: 1. Prepare the journal entry to write off the uncollectible accounts. 2. Prepare the journal entry to record the estimate of bad debt expense. 3. If Gilmore had written off $3,000 of receivables as uncollectible during the year, how much would bad debt expense reported on the income statement have changed? 4. CONCEPTUAL CONNECTION If Gilmores estimate of bad debts is correct (2.2% of credit sales) and the gross margin is 20%, by how much did Gilmores income from operations increase assuming $150,000 of the sales would have been lost if credit sales were not offered?
38. The company’s accounts receivable under “61-90 days” category totaleda. P32,600b. P44,320c. P44,600d. P42,000 39. The allowance for bad debts to be reported on the balance sheet at December 31, 20x7, isa. P13,199b. P6,199c. P9,699d. P9,043 40. What entry should be made on December 31, 20x7, to adjust the allowance for bad debts account?a. Bad debt expense 13,699Allowance for bad debts 13,699b. Bad debt expense 5,199Allowance for bad debts 5,199c. Allowance for bad debts 5,199Bad debts expense 5,199d. Bad debt expense 9,699Allowance for bad debts 9,699
12/31/2020: During 2020, $10,000 in accounts receivable were written off. At the end of the second year of operations, Yolandi Company had $1,000,000 in sales and accounts receivable of $400,000. XYZ’s management has estimated that 1.5% of sales will be uncollectible. For the end of 2020, after the adjusting entry for bad debts was journalized, what is the balance in the following accounts: Bad debt expense: Allowance for doubtful accounts: For the end of 2020, what is the company's net realizable value?
Need in 10 minutes 8. On January 1, 20x1, ABC Bank extended a P1,000,000 loan to XYZ. Principal is due on December 31, 20x5 but 10% interest is due annually starting December 31, 20x1. On December 31, 20x3, XYZ was delinquent and it was ascertained that the loan is credit-impaired. ABC assessed that interests accruing on the loan will not be collected however the principal is expected to be collected in two equal annual installments starting December 31, 20x4. The current rate on December 31, 20x3 is 14%. The carrying amount of the loan receivable on December 31, 20x4 will approximately be (use 6-decimal present value factor)
The accounts of Long Company provided the following 20X5 information at 31 December 20X5 (end of the annual period): Accounts receivable balance, 1 January 20X5 $51,000 Allowance for doubtful accounts balance, 1 January 20X5 3,000 Uncollectible account to be written off during 20X5 (ex-customer Slo) 1,000 Cash collected on accounts receivable during 20X5 170,000 Estimates for bad debt losses: Based on ending balance of accounts receivable, 8%. Based on aging schedule (excludes Slo’s account): Age Accounts Receivable Probability of Noncollection Less than 30 days $28,000 2% 31–90 days 7,000 10 91–120 days 3,000 30 More than 120 days 2,000 60 Required: Give the entry to write off customer Slo’s long-overdue account. Give all entries related to accounts receivable and the allowance account for the following two cases: Case A—Bad debt expense is based on the ending balance of accounts receivable Case B—Bad debt expense is based on aging Show how the results of applying each case above…
The Peter Company's Unadjusted Trial Balance shows the following balances: Accounts Receivable ....................................................... $600,000. (dr.) Allowance for Uncollectible Accounts ...............................$13,000. (dr.) Net Sales ...................................................................... $4,000,000. (cr.) 4.Assume that Peter Company’s aging schedule indicates that 4% of the December 31 receivables will become uncollectible. What amount of bad debt expense will Peter Company report in its income statement? a.$ 9,000. b.$13,000. c.$24,000. d.$37,000. 5.Assume that Peter Company estimates its bad debts expense to be 1% of Net Sales. After the adjustment is made to record bad debts expense, what will be the net carrying value of the accounts receivable in Peter Company's Balance Sheet? a.$600,000. b.$573,000. c.$560,000. d.$547,000.