Please show solutions in getting the answer. Thank you! Problem 5-10 (IAA)Gruesome Company provided the following information forthe current year:Allowance for doubtful accounts on January 1Credit salesAccounts receivable deemed worthless and written off200,0005,000,000300,000As a result of a review and aging of accounts receivable, ithas been determined that an allowance for doubtful accountsof P400,000 is needed on December 31.What amount should be recorded as doubtful accountsexpense for the current year?a. 400,000b. 300,000c. 500,000d. 700,000Problem 5-11 (AICPA Adapted)Tantrum Company provided the following information inrelation to accounts receivable at year-end:DaysoutstandingEstimatedАтоunt% Uncollectible0 - 6061 - 120Over 1201,200,0001%2%6%1,000,0003,100,000During the current year, the entity wrote off P70,000 inaccounts receivable and recovered P20,000 that had beenwritten off in prior years.At the beginning of current year, the allowance foruncollectible accounts was PG0,000.Under the aging method, what amount of uncollectibleaccounts expense should be reported for the current year?a. 90,000b. 80,000c. 70,000d. 60,000

Account receivable means the amount due from customer whom we sold the goods on credit. Allowance…

Answered: Problem 5-10 (IAA) Gruesome Company…

Cornerstones of Financial Accounting

4th Edition

ISBN:9781337690881

Author:Jay Rich, Jeff Jones

Publisher:Jay Rich, Jeff Jones

Chapter5: Sales And Receivables

Section: Chapter Questions

Problem 68E: Bad Debt Expense: Aging Method Glencoe Supply had the following accounts receivable aging schedule...

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Similar questions

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?
Aging of receivables schedule The accounts receivable clerk for Waddell industries prepared the following partially completed aging of receivables schedule as of the end of business on August 31: The following accounts were unintentionally omitted from the aging schedule and not included in the preceding subtotals: Customer Balance Due Date Builders Industries 544,500 May 1 Eikhorn Company 21,000 June 20 Granite Creek Inc. 7,500 July 13 Lockwood Company 14,000 September 0 Teton Company 13.000 August 7 a. Determine the number of days past due for each of the preceding accounts as of August 31. b. Complete the aging of receivables schedule by adding the omitted accounts to the bottom of the schedule and updating the totals.
Aging of receivables; estimating allowance for doubtful accounts Wig Creations Company supplies wigs and hair care products to beauty salons throughout Texas and the Southwest. The accounts receivable clerk for Wig Creations prepared the following partially completed aging of receivables schedule as of the end of business on December 31, 20Y7: The following accounts were unintentionally omitted from the aging schedule. Assume all due dates are for the current year except for Visions Hair Nail, which is due in the next year. Customer Due Date Balance Arcade Beauty Aug. 17 10,000 Creative Images Oct. 30 8,500 Excel Hair Products July 3 7,500 First Class Hair Care Sept. 8 6,600 Golden Images Nov. 23 3,600 Oh That Hair Nov. 29 1,400 One Stop Hair Designs Dec. 7 4,000 Visions Hair Nail Jan. 11 9,000 Wig Creations has a past history of uncollectible accounts by age category, as follows Age Class Percent Uncollectible Not past due 1% 1-30 days past due 4 31-60 days past due 16 61 -90 days past due 25 91-120 days past due 40 Over 120 days past due 80 Instructions 1. Determine the number of days past due for each of the preceding accounts. 2. Complete the aging of receivables schedule by adding the omitted accounts to the bottom of the schedule and updating the totals. 3. Estimate the allowance for doubtful accounts, based on the aging of receivables schedule. 4. Assume that the allowance for doubtful accounts for Wig Creations has a credit balance of 7,375 before adjustment on December 31. Journalize the adjustment for uncollectible accounts. 5. Assume that the adjusting entry in (4) was inadvertently omitted, how would the omission affect the balance sheet and income statement?

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