Problems 1. For the year ended December 31, 2017, Casey Company estimated its allowance for uncollectible accounts using the year-end aging of accounts receivable. The following data are available: Allowance for uncollectible accounts, 1/1/17 800,000 Provision for uncollectible accounts during 2017 (2% on credit sales of P20,000,000) 400,000 Uncollectible accounts written off, 11/30/17 300,000 Recovery of accounts considered worthless Estimated uncollectible accounts per aging, 12/31/17 100,000 1,150,000 After year-end adjustment, the uncollectible accounts expense for 2017 should be а. 300,000 b. 600,000 с. 150,000 d. 550,000

Problems 1. For the year ended December 31, 2017, Casey Company estimated its allowance for uncollectible accounts using the year-end aging of accounts receivable. The following data are available: Allowance for uncollectible accounts, 1/1/17 800,000 Provision for uncollectible accounts during 2017 (2% on credit sales of P20,000,000) 400,000 Uncollectible accounts written off, 11/30/17 300,000 Recovery of accounts considered worthless Estimated uncollectible accounts per aging, 12/31/17 100,000 1,150,000 After year-end adjustment, the uncollectible accounts expense for 2017 should be а. 300,000 b. 600,000 с. 150,000 d. 550,000

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter6: Cash And Receivables

Section: Chapter Questions

Problem 6MC: Prior to adjustments, Barrett Companys account balances at December 31, 2019, for Accounts...

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Allowance Method for Accounting for Bad Debts At the beginning of 2016, EZ Tech Companys Accounts Receivable balance was $140,000, and the balance in Allowance for Doubtful Accounts was $2,350 (Cr.). EZ Techs sales in 2016 were $1,050,000, 80% of which were on credit. Collections on account during the year were $670,000. The company wrote off $4,000 of uncollectible accounts during the year. Required Prepare summary journal entries related to the sale, collections, and write-offs of accounts receivable during 2016. Prepare journal entries to recognize bad debts assuming that (a) bad debts expense is 3% of credit sales and (b) amounts expected to be uncollectible are 6% of the year-end accounts receivable. What is the net realizable value of accounts receivable on December 31, 2016, under each assumption in part (2)? What effect does the recognition of bad debts expense have on the net realizable value? What effect does the write-off of accounts have on the net realizable value?
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