1. What is the doubtful accounts expense for the year 2021?2. What is the net realizable value of the accounts receivable on December 31, 2021? Please include solutions. Thank you! From inception of operation in 2017, Danica Company carried no allowance for doubtfulaccounts. Uncollectible receivables were expensed as written off and recoveries were creditedto income as collected. On March 1, 2021, after the 2020 financial statements were issued,management recognized that Danica's accounting policy with respect to doubtful accounts wasnot correct and determined that an allowance for doubtful accounts was necessary. A policywas established to maintain an allowance for doubtful accounts based on Danica's historical baddebt loss percentage applied to year end accounts receivable. The historical bad debt losspercentage is to be recomputed each year based on the relationship of net write offs to creditsales for all available past years up to a maximum of five years. Information from Danica'srecords for five years is as follows: AccountsYearCredit saleswritten offRecoveriesP 750,000P 7,500Nil20172018P 1,0001,100,0001,500,00020,000201925,0001,5002,5005,00020201,650,0002,000,00032,500202144,000Accounts receivable balances were P625,000 and P1,000,000 at December 31, 2020 andDecember 31, 2021, respectively.29. What is the doubtful accounts expense for the year 2021?30. What is the net realizable value of the accounts receivable on December 31, 2021?

A certain percentage of expected uncollectible amount is derived through historical analysis of the…

Answered: hat is the doubtful accounts expense…

hat is the doubtful accounts expense for the year 2021? 2. What is the net realizable value of the accounts receivable on December 31, 2021?

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter9: Accounting For Receivables

Section: Chapter Questions

Problem 5PB: The following accounts receivable information pertains to Select Distributors. A. Determine the...

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The following accounts receivable information pertains to Select Distributors. A. Determine the estimated uncollectible bad debt for Select Distributors in 2018 using the balance sheet aging of receivables method. B. Record the year-end 2018 adjusting journal entry for bad debt. C. Assume there was a previous debit balance in Allowance for Doubtful Accounts of $233,180; record the year-end entry for bad debt, taking this into consideration. D. Assume there was a previous credit balance in Allowance for Doubtful Accounts of $199,440; record the year-end entry for bad debt, taking this into consideration. E. On March 21, 2019, Select Distributors identifies Aida Normans account as uncollectible in the amount of $10,890. Record the entry for identification.
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In 2018, the internal auditors of Development Technologies, Inc., discovered that (a) 2017 accrued wages of$2 million were not recognized until they were paid in 2018, and (b) a $3 million purchase of merchandisein 2018 was recorded in 2017 instead. The physical inventory count at the end of 2017 was correct. Ignoringincome taxes, what journal entries are needed in 2018 to correct each error? Also, briefly describe any othermeasures Development Technologies would take in connection with correcting the errors
From inception of operations to December 31, 2020, Flounder Corporation provided for uncollectible accounts receivable under the allowance method. The provisions are recorded, based on analyses of customers with different risk characteristics. Bad debts written off were charged to the allowance account; recoveries of bad debts previously written off were credited to the allowance account, and no year-end adjustments to the allowance account were made. Flounder’s usual credit terms are net 30 days.The balance in Allowance for Doubtful Accounts was $119,600 (Cr.) at January 1, 2020. During 2020, credit sales totaled $8,280,000, the provision for doubtful accounts was determined to be $165,600, $82,800 of bad debts were written off, and recoveries of accounts previously written off amounted to $13,800. Flounder installed a computer system in November 2020, and an aging of accounts receivable was prepared for the first time as of December 31, 2020. A summary of the aging is as follows.…
From inception of operations to December 31, 2020, Flounder Corporation provided for uncollectible accounts receivable under the allowance method. The provisions are recorded, based on analyses of customers with different risk characteristics. Bad debts written off were charged to the allowance account; recoveries of bad debts previously written off were credited to the allowance account, and no year-end adjustments to the allowance account were made. Flounder’s usual credit terms are net 30 days.The balance in Allowance for Doubtful Accounts was $119,600 (Cr.) at January 1, 2020. During 2020, credit sales totaled $8,280,000, the provision for doubtful accounts was determined to be $165,600, $82,800 of bad debts were written off, and recoveries of accounts previously written off amounted to $13,800. Flounder installed a computer system in November 2020, and an aging of accounts receivable was prepared for the first time as of December 31, 2020. A summary of the aging is as follows.…
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Problem 23 From inception of operation in 2017, Danica Company carried no allowance for doubtful accounts. Uncollectible receivables were expensed as written off and recoveries were credited to income as collected. On March 1, 2021, after the 2020 financial statements were issued, management recognized that Danica’s accounting policy with respect to doubtful accounts was not correct and determined that an allowance for doubtful accounts was necessary. A policy was established to maintain an allowance for doubtful accounts based on Danica’s historical bad debt loss percentage applied to year end accounts receivable. The historical bad debt loss percentage is to be recomputed each year based on the relationship of net write offs to credit sales for all available past years up to a maximum of five years. Information from Danica’s records for five years is as follows: Year Credit sales Accounts written off Recoveries 2017 P 750,000 P 7,500 Nil 2018 1,100,000 20,000 P 1,000…
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