of credit sales. At the end of the year, the company ages its accounts receivable and adjusts thebalance in the Allowance for Uncollectible Accounts to correspond to the aging schedule.During July to December of 20X7, Texas Gulf Carts completed the following transactions:August 9Made a compound entry to write off uncollectibleaccounts: J. Aguilar, $200; Scaton Co., $100; and T.Taylor, $700.Sept. 30Recorded uncollectible account expense equal to 1%% of creditsales of $140,000Oct. 18Wrote off accounts receivable as uncollectible the $500 accountreceivable from Lantz Co. and the $400 acunt receivable fromNavisor Corp.Dec. 31Recorded uncollectible-account expense based on the aging ofreccivables, which follows:Age of Accounts1-3031 - 6061 – 90Over 90TotalDaysDaysDaysDays$163,000$100,000$40,000$14,0009,000Estimated percent uncollectible0.1%0.5%5%30%Required:a. Record the transactions in the journal.b. Open the Allowance for Uncollectible Account and post entries affecting thataccount. Keep a running balance.c. Show how Texas Gulf Carts should report accounts receivable on its balancesheet at December 31, 20X7.Question 4The June 30, 20X 9, balance sheet of Ram Technologies reports the following:Accounts Receivable...Allowance for Uncollectible Accounts (Cr).....$265,0007,100At the end of each quarter, RAM estimates uncollectible-account expense to be 2% of credit sales. Perry Materials uses the aging method and has completed the following analysis of the accountsreceivable:Over 90 TotalBalanceCustomer1-30 Days 31-60 Days 61-90 Days DaysJohnson$4,600$3,200$7,800Hot Pots, Inc.8001,0001,800Potter40,00055040,550Harrison3,6009004,500Marx2,000502,050Younger65,00065,000Merry Maids5,9005,900Acher12,0006,40018,400Totals$127,500$13,750$3,700 $1,050$146,000Uncollectible percentage2%10%20%40%Estimated uncollectibleamount$2,550$1,375$740$420$5,085Required:1. How much will the Uncollectible account expense for the year be?2. What will the final balance in the Allowance account be, after adjusting for uncollectibleaccount expense?

Allowance for uncollectible account is a separate provision created by the company if the company…

Answered: of credit sales. At the end of the…

Financial Accounting Intro Concepts Meth/Uses

14th Edition

ISBN:9781285595047

Author:Weil

Publisher:Weil

Chapter8: Revenue Recognition, Receivables, And Advances From Customers

Section: Chapter Questions

Problem 23E

See similar textbooks

Similar questions

As Perry Materials Supply was preparing for the year-end close, their balances were as follows: Accounts Receivable - $146000 (dr) Allowance for uncollectible accounts - $6200 (dr) Uncollected Account Expense - $0 Perry Materials uses the aging method and has completed the following analysis of the accounts receivable: Customer 1-30 Days 31-60 Days 61-90 Days Over 90 Days Total Balance Johnson $4,600 $3,200 $7,800 Hot Pots, Inc. 800 1,000 1,800 Potter 40,000 550 40,550 Harrison 3,600 900 4,500 Marx 2,000 50 2,050 Younger 65,000 65,000 Merry Maids 5,900 5,900 Acher 12,000 6,400 18,400 Totals $127,500 $13,750 $3,700 $1,050 $146,000 Uncollectible percentage 2% 10% 20% 40% Estimated uncollectible amount $2,550 $1,375 $740 $420 $5,085 Required: How much will the…
Below is the aging of receivables schedule for Evers Industries. Aging of Receivables ScheduleJuly 31 Customer Balance NotPast Due 1-30DaysPast Due 31-60DaysPast Due 61-90DaysPast Due Over 90DaysPast Due Subtotals 1,050,000 600,000 220,000 115,000 85,000 30,000 Boyd Industries 36,000 36,000 Hodges Company 11,500 11,500 Kent Creek Inc. 6,600 6,600 Lockwood Company 7,400 7,400 Van Epps Company 13,000 13,000 Totals 1,124,500 607,400 233,000 121,600 96,500 66,000 Percentage uncollectible 1% 3% 12% 30% 75% Allowance for Doubtful Accounts 106,106 6,074 6,990 14,592 28,950 49,500 Assume that the allowance for doubtful accounts for Evers Industries has a credit balance of $8,240 before adjustment on July 31. Journalize the adjusting entry for uncollectible accounts as of July 31. If an amount box does not require an entry, leave it blank. July 31 Bad Debt Expense Allowance for Doubtful…
Solve from the following facts. (Round your answers to the nearest hundredth.) Current assets $ 14,000 Net sales $ 40,000 Accounts receivable $ 5,000 Total assets $ 38,000 Current liabilities $ 20,000 Net income $ 10,100 Inventory $ 4,000 a. Calculate Current ratio. b. Calculate Acid test. c. Calculate Average day’s collection. d. Calculate Asset turnover. e. Calculate Profit margin on sales.
Compute the DSO for Tokyo Corporation which has the following aging schedule (No decimal point, use whole number): Account Age Amount Outstanding Average Days 0-30 days P55,000 24 31-60 days 30,000 42 Over 60 days 5,000 66
Performance Bike Co. is a wholesaler of motorcycle supplies. An aging of the company’s accounts receivable on December 31 and a historical analysis of the percentage of uncol-lectible accounts in each age category are as follows: Age interval Balance percent uncollectible __________________________________________________________________________________ Not past due $3,250,000 0.8% 1-30 day past due 1,050,000 2.4 31-60 day past due 780,000 7.0 61-90 day past due 320,000 18.0 91-180 day past due 240,000 34.0 over 180 day past due 150,000 85.0 $5,790,000 Estimate the proper balance of…
Noreen Company provided the following information for 2020:Accounts receivable – January 1 2,000,000Credit sales 10,000,000Collection from customers, excluding the recovery of accounts written off 8,000,000Accounts written off 100,000Sales returns 500,000Recovery of accounts written off 50,000Estimated future sales returns on December 31 150,000Estimated uncollectible accounts on December 31 per aging 300,000What is the “amortized cost” of accounts receivable on December 31, 2020?A. 3,400,000 B. 3,100,000 C. 2,950,000 D. 2,900,000
Needed in 20 minutes 6. Q Company has the following information on December 31, 20x1 before any year-end adjustments:Accounts receivable, beginning balance, 100,000Net credit sales, 290,000Collections from customers (excluding recoveries), 160,000Allowance for doubtful accounts, beginning balance, 30,000Write-offs, 15,000Recoveries, 3,000Percentage of receivables, 10%Compute the net realizable value of accounts receivable
Given the following information, show all three methods to dispose of over- or under-applied MOH. CGS for the period was $95,000, using applied MOH of $15,600. Three months later, it was discovered that actual MOH was $17,550. Ending Balance RM $40,500 WIP $60,000 FG $120,000
Required information Use the following information for the Exercises 14-15 below. (Algo) Skip to question [The following information applies to the questions displayed below.]Daley Company prepared the following aging of receivables analysis at December 31. Total Days Past Due 0 1 to 30 31 to 60 61 to 90 Over 90 Accounts receivable $ 655,000 $ 413,000 $ 107,000 $ 53,000 $ 35,000 $ 47,000 Percent uncollectible 3% 4% 7% 9% 12% Exercise 9-14 (Algo) Aging of receivables method LO P3 a. Complete the table below to calculate the estimated balance of Allowance for Doubtful Accounts using aging of accounts receivable.b. Prepare the adjusting entry to record bad debts expense using the estimate from part a. Assume the unadjusted balance in the Allowance for Doubtful Accounts is a $5,300 credit.c. Prepare the adjusting entry to record bad debts expense using the estimate from part a. Assume the unadjusted balance in the Allowance for Doubtful Accounts is a $1,800 debit.
Required information Use the following information for the Exercises below. Skip to question [The following information applies to the questions displayed below.]Daley Company prepared the following aging of receivables analysis at December 31. Days Past Due Total 0 1 to 30 31 to 60 61 to 90 Over 90 Accounts receivable $ 625,000 $ 407,000 $ 101,000 $ 47,000 $ 29,000 $ 41,000 Percent uncollectible 3 % 4 % 7 % 9 % 12 % Exercise 9-8 Aging of receivables method LO P3 a. Complete the below table to calculate the estimated balance of Allowance for Doubtful Accounts using aging of accounts receivable.b. Prepare the adjusting entry to record Bad Debts Expense using the estimate from part a. Assume the unadjusted balance in the Allowance for Doubtful Accounts is a $4,700 credit.c. Prepare the adjusting entry to record bad debts expense using the estimate from part a. Assume the unadjusted balance in…
A partial aging of accounts receivable for a cleaning service is given in the accompanying table. Fill in the missing parts of the following aging schedule for the cleaning service. (Round value of account answers to the nearest whole dollar, e.g. 5,275 and % of total account answers to 1 decimal place, e.g. 12.1%.) Age of Accounts (in days) Value of Account % of Total Account 10 $262,000 % 30 $131,000 % 45 $ % 60 $57,000 % 75 $27,000 % Total $670,000 100.0% Determine the firm’s effective days’ sales outstanding. (Round answer to 1 decimal place, e.g. 12.2.) effective days' sales outstanding is ______ days. How does it compare with the industry average of 36 days? The firm is_____________efficient than other firms in the industry.
An analyst has obtained the following information regarding ABC, Inc. Using this information, he needs to estimate the company's Accounts Payable. Sales = $93,398Cost of Goods Sold (COGS) = $36,052Cash Cycle = 22 daysOperating Cycle = 86 daysAccounts Receivable Period = AR Period = Average Collection Period (ACP) = 40 daysWhat is the company's Accounts Payable balance?

SEE MORE QUESTIONS

Recommended textbooks for you

Financial Accounting Intro Concepts Meth/Uses

Finance

ISBN:

9781285595047

Author:

Weil

Publisher:

Cengage

EBK CONTEMPORARY FINANCIAL MANAGEMENT

Finance

ISBN:

9781337514835

Author:

MOYER

Publisher:

CENGAGE LEARNING - CONSIGNMENT

EBK CFIN

Finance

ISBN:

9781337671743

Author:

BESLEY

Publisher:

CENGAGE LEARNING - CONSIGNMENT

Financial Accounting Intro Concepts Meth/Uses

Finance

ISBN:

9781285595047

Author:

Weil

Publisher:

Cengage

EBK CONTEMPORARY FINANCIAL MANAGEMENT

Finance

ISBN:

9781337514835

Author:

MOYER

Publisher:

CENGAGE LEARNING - CONSIGNMENT

EBK CFIN

Finance

ISBN:

9781337671743

Author:

BESLEY

Publisher:

CENGAGE LEARNING - CONSIGNMENT

SEE MORE TEXTBOOKS