Accounts receivable Accounts receivable refers to the amounts to be received within a short period from customers upon the sale of goods and services on account. In other words, accounts receivable are amounts customers owe to the business. Accounts receivable is an asset of a business. Bad debt expense: Bad debt expense is an expense account. The amounts of loss incurred from extending credit to the customers are recorded as bad debt expense. In other words, the estimated uncollectible accounts receivable are known as bad debt expense. Allowance method: It is a method for accounting bad debt expense, where amount of uncollectible accounts receivable are estimated and recorded at the end of particular period. Under this method, bad debts expenses are estimated and recorded prior to the occurrence of actual bad debt, in compliance with matching principle by using the allowance for doubtful account. Aging of receivables method: A method of determining the estimated uncollectible receivables, based on the age of individual accounts receivable is known as aging of receivables method. To determine: The total estimated bad debts using the given information.

Question

Want to see the full answer?

Answer 1

Question

Chapter 8, Problem 8.5E

(a)

To determine

Accounts receivable

Accounts receivable refers to the amounts to be received within a short period from customers upon the sale of goods and services on account. In other words, accounts receivable are amounts customers owe to the business. Accounts receivable is an asset of a business.

Bad debt expense:

Bad debt expense is an expense account. The amounts of loss incurred from extending credit to the customers are recorded as bad debt expense. In other words, the estimated uncollectible accounts receivable are known as bad debt expense.

Allowance method:

It is a method for accounting bad debt expense, where amount of uncollectible accounts receivable are estimated and recorded at the end of particular period. Under this method, bad debts expenses are estimated and recorded prior to the occurrence of actual bad debt, in compliance with matching principle by using the allowance for doubtful account.

Aging of receivables method:

A method of determining the estimated uncollectible receivables, based on the age of individual accounts receivable is known as aging of receivables method.

To determine: The total estimated bad debts using the given information.

(b)

To determine

To prepare: The year-end adjusting entry to record the bad debt expense as at March 31, 2017.

(c)

To determine

To discuss: The implication of the changes in the aging schedule from the year 2016 to the year 2017.

Expert Solution & Answer

Want to see the full answer?

Check out a sample textbook solution

See solution

Students have asked these similar questions

Novak Corp. has accounts receivable of $90,300 at March 31, 2017. Credit terms are 2/10, n/30. At March 31, 2017, there is a $2,284 credit balance in Allowance for Doubtful Accounts prior to adjustment. The company uses the percentage-of-receivables basis for estimating uncollectible accounts. The company’s estimates of bad debts are as shown below. Balance, March 31 Estimated PercentageUncollectible Age of Accounts 2017 2016 Current $61,700 $74,140 2 % 1–30 days past due 12,600 8,520 5 31–90 days past due 9,200 2,260 28 Over 90 days past due 6,800 1,160 49 $90,300 $86,080 Determine the total estimated uncollectibles. The total estimated uncollectibles $Enter a dollar amount Prepare the adjusting entry at March 31, 2017, to record bad debt expense. (Credit account…

Vaughn Manufacturing has accounts receivable of $97,900 at March 31, 2022. Credit terms are 2/10, n/30. At March 31, 2022, there is a $1,951 credit balance in Allowance for Doubtful Accounts prior to adjustment. The company uses the percentage-of- receivables basis for estimating uncollectible accounts. The company's estimates of bad debts are as shown below. Balance, March 31 Estimated Percentage Age of Accounts 2022 2021 Uncollectible Current $69,000 $80,200 2 % 1-30 days past due 12,000 7,260 31-90 days past due 9,900 2,500 30 Over 90 days past due 7,000 1,060 50 $97,900 $91,020 Prepare the adjusting entry at March 31, 2022, to record bad debt expense. (Credit account titles are automatically indented when amount is entered. Do not indent manually.) Account Titles and Explanation Debit Credit Uncollectible Account Expense Allowance for Doubtful Accounts

Crane Company has accounts receivable of $96,600 at March 31, 2022. Credit terms are 2/10, n/30. At March 31, 2022, there is a $2,287 credit balance in Allowance for Doubtful Accounts prior to adjustment. The company uses the percentage-of-receivables basis for estimating uncollectible accounts. The company’s estimates of bad debts are as shown below. Balance, March 31 Estimated PercentageUncollectible Age of Accounts 2022 2021 Current $65,600 $75,150 2 % 1–30 days past due 13,500 7,870 5 31–90 days past due 9,800 2,630 28 Over 90 days past due 7,700 1,140 47 $96,600 $86,790 Determine the total estimated uncollectibles at March 31, 2022. Total estimated uncollectibles $Enter a dollar amount Prepare the adjusting entry at March 31, 2022, to record bad debt expense. (Credit account titles are automatically indented when amount is entered. Do not…

Answer 2

Question

Chapter 8, Problem 8.5E

(a)

To determine

Accounts receivable

Accounts receivable refers to the amounts to be received within a short period from customers upon the sale of goods and services on account. In other words, accounts receivable are amounts customers owe to the business. Accounts receivable is an asset of a business.

Bad debt expense:

Bad debt expense is an expense account. The amounts of loss incurred from extending credit to the customers are recorded as bad debt expense. In other words, the estimated uncollectible accounts receivable are known as bad debt expense.

Allowance method:

It is a method for accounting bad debt expense, where amount of uncollectible accounts receivable are estimated and recorded at the end of particular period. Under this method, bad debts expenses are estimated and recorded prior to the occurrence of actual bad debt, in compliance with matching principle by using the allowance for doubtful account.

Aging of receivables method:

A method of determining the estimated uncollectible receivables, based on the age of individual accounts receivable is known as aging of receivables method.

To determine: The total estimated bad debts using the given information.

(b)

To determine

To prepare: The year-end adjusting entry to record the bad debt expense as at March 31, 2017.

(c)

To determine

To discuss: The implication of the changes in the aging schedule from the year 2016 to the year 2017.

Expert Solution & Answer

Want to see the full answer?

Check out a sample textbook solution

See solution

Answer 3

Question

Chapter 8, Problem 8.5E

(a)

To determine

Accounts receivable

Accounts receivable refers to the amounts to be received within a short period from customers upon the sale of goods and services on account. In other words, accounts receivable are amounts customers owe to the business. Accounts receivable is an asset of a business.

Bad debt expense:

Bad debt expense is an expense account. The amounts of loss incurred from extending credit to the customers are recorded as bad debt expense. In other words, the estimated uncollectible accounts receivable are known as bad debt expense.

Allowance method:

It is a method for accounting bad debt expense, where amount of uncollectible accounts receivable are estimated and recorded at the end of particular period. Under this method, bad debts expenses are estimated and recorded prior to the occurrence of actual bad debt, in compliance with matching principle by using the allowance for doubtful account.

Aging of receivables method:

A method of determining the estimated uncollectible receivables, based on the age of individual accounts receivable is known as aging of receivables method.

To determine: The total estimated bad debts using the given information.

(b)

To determine

To prepare: The year-end adjusting entry to record the bad debt expense as at March 31, 2017.

(c)

To determine

To discuss: The implication of the changes in the aging schedule from the year 2016 to the year 2017.

Expert Solution & Answer

Want to see the full answer?

Check out a sample textbook solution

See solution

Answer 4

Question

Chapter 8, Problem 8.5E

(a)

To determine

Accounts receivable

Accounts receivable refers to the amounts to be received within a short period from customers upon the sale of goods and services on account. In other words, accounts receivable are amounts customers owe to the business. Accounts receivable is an asset of a business.

Bad debt expense:

Bad debt expense is an expense account. The amounts of loss incurred from extending credit to the customers are recorded as bad debt expense. In other words, the estimated uncollectible accounts receivable are known as bad debt expense.

Allowance method:

It is a method for accounting bad debt expense, where amount of uncollectible accounts receivable are estimated and recorded at the end of particular period. Under this method, bad debts expenses are estimated and recorded prior to the occurrence of actual bad debt, in compliance with matching principle by using the allowance for doubtful account.

Aging of receivables method:

A method of determining the estimated uncollectible receivables, based on the age of individual accounts receivable is known as aging of receivables method.

To determine: The total estimated bad debts using the given information.

(b)

To determine

To prepare: The year-end adjusting entry to record the bad debt expense as at March 31, 2017.

(c)

To determine

To discuss: The implication of the changes in the aging schedule from the year 2016 to the year 2017.

Expert Solution & Answer

Want to see the full answer?

Check out a sample textbook solution

See solution

Answer 5

Chapter 8, Problem 8.5E

(a)

To determine

Accounts receivable

Accounts receivable refers to the amounts to be received within a short period from customers upon the sale of goods and services on account. In other words, accounts receivable are amounts customers owe to the business. Accounts receivable is an asset of a business.

Bad debt expense:

Bad debt expense is an expense account. The amounts of loss incurred from extending credit to the customers are recorded as bad debt expense. In other words, the estimated uncollectible accounts receivable are known as bad debt expense.

Allowance method:

It is a method for accounting bad debt expense, where amount of uncollectible accounts receivable are estimated and recorded at the end of particular period. Under this method, bad debts expenses are estimated and recorded prior to the occurrence of actual bad debt, in compliance with matching principle by using the allowance for doubtful account.

Aging of receivables method:

A method of determining the estimated uncollectible receivables, based on the age of individual accounts receivable is known as aging of receivables method.

To determine: The total estimated bad debts using the given information.

(b)

To determine

To prepare: The year-end adjusting entry to record the bad debt expense as at March 31, 2017.

(c)

To determine

To discuss: The implication of the changes in the aging schedule from the year 2016 to the year 2017.

Answer 6

Chapter 8, Problem 8.5E

(a)

To determine

Accounts receivable

Accounts receivable refers to the amounts to be received within a short period from customers upon the sale of goods and services on account. In other words, accounts receivable are amounts customers owe to the business. Accounts receivable is an asset of a business.

Bad debt expense:

Bad debt expense is an expense account. The amounts of loss incurred from extending credit to the customers are recorded as bad debt expense. In other words, the estimated uncollectible accounts receivable are known as bad debt expense.

Allowance method:

It is a method for accounting bad debt expense, where amount of uncollectible accounts receivable are estimated and recorded at the end of particular period. Under this method, bad debts expenses are estimated and recorded prior to the occurrence of actual bad debt, in compliance with matching principle by using the allowance for doubtful account.

Aging of receivables method:

A method of determining the estimated uncollectible receivables, based on the age of individual accounts receivable is known as aging of receivables method.

To determine: The total estimated bad debts using the given information.

Answer 7

Chapter 8, Problem 8.5E

(a)

To determine

Accounts receivable

Accounts receivable refers to the amounts to be received within a short period from customers upon the sale of goods and services on account. In other words, accounts receivable are amounts customers owe to the business. Accounts receivable is an asset of a business.

Bad debt expense:

Bad debt expense is an expense account. The amounts of loss incurred from extending credit to the customers are recorded as bad debt expense. In other words, the estimated uncollectible accounts receivable are known as bad debt expense.

Allowance method:

It is a method for accounting bad debt expense, where amount of uncollectible accounts receivable are estimated and recorded at the end of particular period. Under this method, bad debts expenses are estimated and recorded prior to the occurrence of actual bad debt, in compliance with matching principle by using the allowance for doubtful account.

Aging of receivables method:

A method of determining the estimated uncollectible receivables, based on the age of individual accounts receivable is known as aging of receivables method.

To determine: The total estimated bad debts using the given information.

Answer 8

(b)

To determine

To prepare: The year-end adjusting entry to record the bad debt expense as at March 31, 2017.

Answer 9

(b)

To determine

To prepare: The year-end adjusting entry to record the bad debt expense as at March 31, 2017.

Answer 10

(c)

To determine

To discuss: The implication of the changes in the aging schedule from the year 2016 to the year 2017.

Answer 11

(c)

To determine

To discuss: The implication of the changes in the aging schedule from the year 2016 to the year 2017.

Answer 12

Expert Solution & Answer

Answer 13

Expert Solution & Answer

Answer 14

Want to see the full answer?

Check out a sample textbook solution

See solution

Answer 15

Ch. 8 - What is the difference between an account...Ch. 8 - What are some common types of receivables other...Ch. 8 - What are the essential features of the allowance...Ch. 8 - Prob. 4Q Ch. 8 - Prob. 5Q Ch. 8 - Prob. 6Q Ch. 8 - Prob. 7Q Ch. 8 - Tawnya Dobbs, the vice president of sales for...Ch. 8 - Prob. 9Q Ch. 8 - Prob. 10Q

Solution Summary: The author explains the aging of receivables method of determining the estimated uncollectible accounts payable based on the age of individual accounts.

Concept explainers

Videos

To prepare: The year-end adjusting entry to record the bad debt expense as at March 31, 2017.

To discuss: The implication of the changes in the aging schedule from the year 2016 to the year 2017.

Want to see the full answer?

Chapter 8 Solutions