The Lake Lucerne Company uses the allowance method of estimating bad debts expense. An aging schedule is prepared in order to calculate the balance in the allowance account. The percentage uncollectible is calculated as followed: 1-30 days= 1.5% 31-60 days= 3.5% 61-90 days= 12% 91-365 days= 70% Calculate the number of days each receivable is outstanding and Complete the Schedule of Accounts Receivable. Both are showed in the images attached for context and data. Make sure to show all work and formulas.
The Lake Lucerne Company uses the allowance method of estimating bad debts expense. An aging schedule is prepared in order to calculate the balance in the allowance account. The percentage uncollectible is calculated as followed: 1-30 days= 1.5% 31-60 days= 3.5% 61-90 days= 12% 91-365 days= 70% Calculate the number of days each receivable is outstanding and Complete the Schedule of Accounts Receivable. Both are showed in the images attached for context and data. Make sure to show all work and formulas.
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
Chapter8: Inventories: Special Valuation Issues
Section: Chapter Questions
Problem 18E: Errors During the course of your examination of the financial statements of Burnett Co., a new...
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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
Background imformation:
The Lake Lucerne Company uses the allowance method of estimating bad debts expense. An aging schedule is prepared in order to calculate the balance in the allowance account.
The percentage uncollectible is calculated as followed:
1-30 days= 1.5%
31-60 days= 3.5%
61-90 days= 12%
91-365 days= 70%
Calculate the number of days each receivable is outstanding and Complete the Schedule of Accounts Receivable . Both are showed in the images attached for context and data. Make sure to show all work and formulas.
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K18
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File
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Page Layout
Bonneville
Chinook
Duwamish
X ✓ fx
B
Customer Name
Foss
Nisqually
Worden
Totals
Estimated % uncollectible
Estimated total uncollectible
=
SARAH Saved V
Formulas Data Review View
C
1-30 Days
O Search
Formula Bar
D
Schedule of Accounts Receivable
31-60 Days
Accounts Receivable
6,445
Automate Help
E
61-90 Days
F
91-365 Days
Balances on July 31, 2024
G
Total Balance
Allowance for Bad Debts
5
(5)
H
Sarah Ha
Transcribed Image Text:1
2
3
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5
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B
9
0
B8
A
Customer Name
Bonneville
Chinook
Duwamish
B
Foss
Nisqually
Worden
fx
Use the
calculations
table above
$
$
$
$
$
Minimum Days Maximum Days
1
30
31
60
61
90
91
365
$
Amount
980
1,010
510
450
D
3,145
350
for
DATA
Today's Date
7/31/2024
7/31/2024
7/31/2024
7/31/2024
7/31/2024
7/31/2024
E
% Uncollectible
1.5
3.5
12.0
70.0
the
Invoice Date
5/26/2024
6/30/2024
7/12/2024
4/15/2024
6/18/2024
5/10/2024
F
Days
Outstanding
66
31
19
107
43
82
G
Uncollectible %
H
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