stimating Allowance for Doubtful Accounts Kirchhoff Industries has a past history of uncollectible accounts, as shown below. Age Class Percent Uncollectible Not past due 2% 1-30 days past due 5 31-60 days past due 20 61-90 days past due 30 Over 90 days past due 45 Estimate the allowance for doubtful accounts, based on the aging of receivables schedule below. Kirchhoff Industries Aging of Receivables Schedule Customer Balance Not Past Due 1-30 Days Past Due 31-60 Days Past Due 61-90 Days Past Due Over 90 Days Past Due Subtotals 732,800 432,400 161,200 66,000 36,600 36,600 Conover Industries 15,700 15,700 Keystone Company 18,300 18,300 Moxie Creek Inc. 4,500 4,500 Rainbow Company 11,700 11,700 Swanson Company 23,000 23,000 Totals 806,000 455,400 172,900 70,500 54,900 52,300 Percentage uncollectible 2% 5% 20% 30% 45% Allowance for Doubtful Accounts fill in the blank 1 fill in the blank 2 fill in the blank 3 fill in the blank 4
stimating Allowance for Doubtful Accounts Kirchhoff Industries has a past history of uncollectible accounts, as shown below. Age Class Percent Uncollectible Not past due 2% 1-30 days past due 5 31-60 days past due 20 61-90 days past due 30 Over 90 days past due 45 Estimate the allowance for doubtful accounts, based on the aging of receivables schedule below. Kirchhoff Industries Aging of Receivables Schedule Customer Balance Not Past Due 1-30 Days Past Due 31-60 Days Past Due 61-90 Days Past Due Over 90 Days Past Due Subtotals 732,800 432,400 161,200 66,000 36,600 36,600 Conover Industries 15,700 15,700 Keystone Company 18,300 18,300 Moxie Creek Inc. 4,500 4,500 Rainbow Company 11,700 11,700 Swanson Company 23,000 23,000 Totals 806,000 455,400 172,900 70,500 54,900 52,300 Percentage uncollectible 2% 5% 20% 30% 45% Allowance for Doubtful Accounts fill in the blank 1 fill in the blank 2 fill in the blank 3 fill in the blank 4
Financial Accounting
14th Edition
ISBN:9781305088436
Author:Carl Warren, Jim Reeve, Jonathan Duchac
Publisher:Carl Warren, Jim Reeve, Jonathan Duchac
Chapter9: Receivables
Section: Chapter Questions
Problem 10E: Using data in Exercise 9-9, assume that the allowance for doubtful accounts for Waddell Industries...
Related questions
Concept explainers
Bad Debts
At the end of the accounting period, a financial statement is prepared by every company, then at that time while preparing the financial statement, the company determines among its total receivable amount how much portion of receivables is collected by the company during that accounting period.
Accounts Receivable
The word “account receivable” means the payment is yet to be made for the work that is already done. Generally, each and every business sells its goods and services either in cash or in credit. So, when the goods are sold on credit account receivable arise which means the company is going to get the payment from its customer to whom the goods are sold on credit. Usually, the credit period may be for a very short period of time and in some rare cases it takes a year.
Question
Estimating Allowance for Doubtful Accounts
Kirchhoff Industries has a past history of uncollectible accounts, as shown below.
| Age Class | Percent Uncollectible | |
|---|---|---|
| Not past due | 2% | |
| 1-30 days past due | 5 | |
| 31-60 days past due | 20 | |
| 61-90 days past due | 30 | |
| Over 90 days past due | 45 |
Estimate the allowance for doubtful accounts, based on the aging of receivables schedule below.
| Kirchhoff Industries | ||||||
| Aging of Receivables Schedule | ||||||
| Customer | Balance | Not Past Due | 1-30 Days Past Due | 31-60 Days Past Due | 61-90 Days Past Due | Over 90 Days Past Due |
| Subtotals | 732,800 | 432,400 | 161,200 | 66,000 | 36,600 | 36,600 |
| Conover Industries | 15,700 | 15,700 | ||||
| Keystone Company | 18,300 | 18,300 | ||||
| Moxie Creek Inc. | 4,500 | 4,500 | ||||
| Rainbow Company | 11,700 | 11,700 | ||||
| Swanson Company | 23,000 | 23,000 | ||||
| Totals | 806,000 | 455,400 | 172,900 | 70,500 | 54,900 | 52,300 |
| Percentage uncollectible | 2% | 5% | 20% | 30% | 45% | |
| Allowance for Doubtful Accounts | fill in the blank 1 | fill in the blank 2 | fill in the blank 3 | fill in the blank 4 |
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Recommended textbooks for you
Financial Accounting
Accounting
ISBN:
9781305088436
Author:
Carl Warren, Jim Reeve, Jonathan Duchac
Publisher:
Cengage Learning
Financial And Managerial Accounting
Accounting
ISBN:
9781337902663
Author:
WARREN, Carl S.
Publisher:
Cengage Learning,
Cornerstones of Financial Accounting
Accounting
ISBN:
9781337690881
Author:
Jay Rich, Jeff Jones
Publisher:
Cengage Learning
Financial Accounting
Accounting
ISBN:
9781305088436
Author:
Carl Warren, Jim Reeve, Jonathan Duchac
Publisher:
Cengage Learning
Financial And Managerial Accounting
Accounting
ISBN:
9781337902663
Author:
WARREN, Carl S.
Publisher:
Cengage Learning,
Cornerstones of Financial Accounting
Accounting
ISBN:
9781337690881
Author:
Jay Rich, Jeff Jones
Publisher:
Cengage Learning
Financial Accounting
Accounting
ISBN:
9781337272124
Author:
Carl Warren, James M. Reeve, Jonathan Duchac
Publisher:
Cengage Learning
Principles of Accounting Volume 1
Accounting
ISBN:
9781947172685
Author:
OpenStax
Publisher:
OpenStax College
College Accounting, Chapters 1-27
Accounting
ISBN:
9781337794756
Author:
HEINTZ, James A.
Publisher:
Cengage Learning,