Financial Accounting - Access
4th Edition
ISBN: 9781259958533
Author: SPICELAND
Publisher: MCG
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Chapter 5, Problem 15RQ
To determine
Allowance for uncollectible accounts:
Allowance for uncollectible account is a contra asset account, whose normal balance is a credit balance. The amount of allowance for uncollectible account represents the amount of accounts receivable which are not expected to be collected.
To discuss: About the last year’s estimation of future uncollectible accounts receivable, if the current year ending balance of allowance for uncollectible account has a credit balance before adjustment.
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If at the end of the year Allowance for Uncollectible Accounts has a credit balance before any adjustment, what might that tell us about last year’s ending balance of the account?
1. What is the required allowance for doubtful accounts at year-end?
2. How much would be the doubtful accounts expense for the current year?
Please include solutions with the answers. Thank you.
Before the year-end adjustment the Allowance for Doubtful Accounts has a debit
balance of $5,000. Using the aging of receivables method, the desired balance of the
Allowance for Doubtful Accounts is estimated as $35,000.
a) What is the uncollectible accounts expense for the period?
b) What is the journal entry required?
c) What is the balance of the Allowance for Doubtful Accounts
after adjustment?
d) If the accounts receivable balance is $325,000, what is the net
realizable value of the receivables after adjustment?
Chapter 5 Solutions
Financial Accounting - Access
Ch. 5 - When recording a credit sale, what account do we...Ch. 5 - Prob. 2RQCh. 5 - Prob. 3RQCh. 5 - Briefly explain the accounting treatment for sales...Ch. 5 - Prob. 5RQCh. 5 - Prob. 6RQCh. 5 - 7.What two purposes do firms achieve by estimating...Ch. 5 - Prob. 8RQCh. 5 - 9.What are the financial statement effects of...Ch. 5 - Prob. 10RQ
Ch. 5 - Prob. 11RQCh. 5 - Prob. 12RQCh. 5 - Prob. 13RQCh. 5 - Prob. 14RQCh. 5 - Prob. 15RQCh. 5 - Discuss the differences between the allowance...Ch. 5 - 17.Notes receivable differ from accounts...Ch. 5 - With respect to notes receivable, explain what...Ch. 5 - Prob. 19RQCh. 5 - Interest on a note receivable typically is due...Ch. 5 - Prob. 21RQCh. 5 - Prob. 22RQCh. 5 - Prob. 23RQCh. 5 - Prob. 24RQCh. 5 - Prob. 25RQCh. 5 - Prob. 5.1BECh. 5 - Calculate net sales (LO52) Kellys Jewelry has the...Ch. 5 - At the end of the first war of operations,...Ch. 5 - Record the adjustment for uncollectible accounts...Ch. 5 - Prob. 5.5BECh. 5 - Record the adjustment for uncollectible accounts...Ch. 5 - Prob. 5.7BECh. 5 - Prob. 5.8BECh. 5 - Prob. 5.9BECh. 5 - Record the write-off of uncollectible accounts...Ch. 5 - Prob. 5.11BECh. 5 - Prob. 5.12BECh. 5 - Sanders Inc. is a small brick manufacturer that...Ch. 5 - Prob. 5.14BECh. 5 - Prob. 5.15BECh. 5 - Prob. 5.16BECh. 5 - Prob. 5.17BECh. 5 - Refer to the information in BE517, but now assume...Ch. 5 - Match each of the following terms with its...Ch. 5 - Prob. 5.1ECh. 5 - Prob. 5.2ECh. 5 - Record credit sale and cash collection with a...Ch. 5 - Prob. 5.4ECh. 5 - Prob. 5.5ECh. 5 - On April 25, Foreman Electric installs wiring in a...Ch. 5 - Record the adjustment for uncollectible accounts...Ch. 5 - Physicians Hospital has the following balances on...Ch. 5 - Record the adjustment for uncollectible accounts...Ch. 5 - Prob. 5.10ECh. 5 - Prob. 5.11ECh. 5 - Consider the following transactions associated...Ch. 5 - Prob. 5.13ECh. 5 - Prob. 5.14ECh. 5 - Prob. 5.15ECh. 5 - Prob. 5.16ECh. 5 - Record notes receivable an interest revenue (LO57)...Ch. 5 - Prob. 5.18ECh. 5 - Compare the percentage of receivables method and...Ch. 5 - Compare the percentage-of-receivables method and...Ch. 5 - Compare the accounting cycle using receivable...Ch. 5 - Prob. 5.1APCh. 5 - Prob. 5.2APCh. 5 - Record transactions related to accounts receivable...Ch. 5 - Record transactions related to uncollectible...Ch. 5 - Compare the direct write-off method to the...Ch. 5 - Prob. 5.6APCh. 5 - Overestimating future uncollectible accounts...Ch. 5 - Prob. 5.8APCh. 5 - Assume selected financial data for Walmart and...Ch. 5 - Calculate the amount of revenue to recognize...Ch. 5 - Prob. 5.2BPCh. 5 - Record transactions related to accounts receivable...Ch. 5 - Record transactions related to uncollectible...Ch. 5 - Compare the direct write-off method to the...Ch. 5 - Prob. 5.6BPCh. 5 - Underestimating future uncollectible accounts...Ch. 5 - Prob. 5.8BPCh. 5 - Assume selected financial data for Sun Health...Ch. 5 - Prob. 5.1APCPCh. 5 - American Eagle Outfitters, Inc. Financial...Ch. 5 - Prob. 5.3APFACh. 5 - Prob. 5.4APCACh. 5 - Prob. 5.5APECh. 5 - Prob. 5.6APIRCh. 5 - Written Communication You have been hired as a...Ch. 5 - Earnings Management Ernie Upshaw is the...
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- Elegant Universal uses the balance sheet aging method to account for uncollectible debt on receivables. The following is the past-due category information for outstanding receivable debt for 2019. To manage earnings more favorably, Elegant Universal considers changing the past-due categories as follows. A. Complete each table by filling in the blanks. B. Determine the difference between totals uncollectible. C. Describe the categories change effect on net income and accounts receivable.arrow_forwardMirror Mart uses the balance sheet aging method to account for uncollectible debt on receivables. The following is the past-due category information for outstanding receivable debt for 2019. To manage earnings more efficiently, Mirror Mart decided to change past-due categories as follows. Complete the following. A. Complete each table by filling in the blanks. B. Determine the difference between total uncollectible. C. Explain how the new total uncollectible amount affects net income and accounts receivable.arrow_forwardOutpost Designs uses the balance sheet aging method to account for uncollectible debt on receivables. The following is the past-due category information for outstanding receivable debt for 2019. To manage earnings more favorably, Outpost Designs decided to change past-due categories as follows. Complete the following. A. Complete each table by filling in the blanks. B. Determine the difference between total uncollectible. C. Explain how the new total uncollectible amount affects net income and accounts receivable.arrow_forward
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- At the end of the fiscal year, accounts receivable has a balance of $100000 and allowance for doubtful accounts has a balance of $ 7000. the expected net realizable value of the accounts receivable is?arrow_forwardAt December 31, 2018, the Leni Inc. account balances before the year-end adjusting entries are the following, Accounts receivable- P50000 Allowance for uncollectible accounts P4500 According to aging of accounts receivable, P6250 of the December 31 receivables are expected to be uncollectible. How much is the net realizable value of accounts receivable after adjustment?arrow_forward8. For the year ended, December 31, 2020, GERBERA Company estimated its allowance for uncollectible accounts using the year-end aging of accounts receivable. The following data are available: Allowance for uncollectible accounts, 1/1/20 -₱56,000; Provision for uncollectible accounts during 2020 ( 2% on credit sales of ₱2,000,000) -₱40,000; Uncollectible accounts are written off, 11/30/20 -₱46,000; Estimated uncollectible account per aging, 12/31/20 -₱69,000. After the year-end adjustment, the uncollectible accounts expense for 2020 should be? * PLEASE SHOW YOUR SOLUTIONS IN GOOD ACCOUNTING FORM. THANK YOUarrow_forward
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