BuyFind

Accounting

27th Edition
WARREN + 5 others
Publisher: Cengage Learning,
ISBN: 9781337272094
BuyFind

Accounting

27th Edition
WARREN + 5 others
Publisher: Cengage Learning,
ISBN: 9781337272094

Solutions

Chapter
Section
Chapter 9, Problem 9.10EX
Textbook Problem

Adjustment for uncollectible account

Using data in Exercise 9-9, assume that the allowance for doubtful accounts for Kirchhoff Industries has a credit balance of $10,112 before adjustment on August 31. Journalize the adjusting entry for uncollectible accounts as of August 31.

Expert Solution
To determine

Analysis of receivables method:

A method of determining the estimated uncollectible receivables based on the age of individual accounts receivable is known as analysis of receivables method. This method is otherwise known as aging of receivables method. Under analysis of receivables method, estimated bad debts would be treated as the desired adjusted balance for allowance for doubtful accounts.

Due date:

Due date is the maturity date on note/account, on due date the borrower is supposed to pay the debt.

Past due:

Past due is the number of days of not receiving/making payment on the overdue account.

To Journalize: The adjusting entry for uncollectible as of August 31.

Explanation of Solution

Calculate number of days past due for each account.

C Industries Account Past due days
Number of days from March 23 to 31 9 days
Number of days from April 1 to 31 31 days
Number of days from May 1 to 31 31 days
Number of days from June 1 to 30 30 days
Number of days from July 1 to 31 31 days
Number of days from August 1 to 31 31 days
Total 162 days

Table (1)

K Company Account Past due days
Number of days from July 2 to 31 30 days
Number of days from August 1 to 31 31 days
Total 61 days

Table (2)

MC Incorporation Account Past due days
Number of days from July 26 to 31 6 days
Number of days from August 1 to 31 31 days
Total 37 days

Table (3)

S Company Auto Past due days
Number of days from August 4 to 31 28 days
Total 28 days

Table (4)

Past due days has been calculated by omitting the due date but including the date of analysis of August 31.

Determine the number of days each account is past due as of August 31.

Account Balance Due Date Number of days past due
C Industries $30,000 March 22 162 days
K Company $18,000 July 1 61 days
MC Incorporation $9,000 July 25 37 days
R Company $26,400 September 10 Not past due
S Company $46,600 August 3 28 days

Table (5)

Now complete the aging of receivables schedule, by adding the omitted accounts to the bottom of the schedule and update the totals...

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Chapter 9 Solutions

Accounting
Show all chapter solutions
Ch. 9 - Direct write-off method Journalize the following...Ch. 9 - Direct write-off method Journalize the following...Ch. 9 - Allowance method Journalize the following...Ch. 9 - Allowance method Journalize the following...Ch. 9 - Percent of sales method At the end of the current...Ch. 9 - Percent of sales method At the end of the current...Ch. 9 - Analysis of receivables method At the end of the...Ch. 9 - Analysis of receivables method At the end of the...Ch. 9 - Note receivable Lundquist Company received a...Ch. 9 - Note receivable Prefix Supply Company received a...Ch. 9 - Accounts receivable turnover and days sales in...Ch. 9 - Accounts receivable turnover and days sales in...Ch. 9 - Classifications of receivables Boeing is one of...Ch. 9 - Nature of uncollectible accounts MGM Resorts...Ch. 9 - Entries for uncollectible accounts, using direct...Ch. 9 - Entries for uncollectible receivables, using...Ch. 9 - Entries to write off accounts receivable Quantum...Ch. 9 - Providing for doubtful accounts At the end of the...Ch. 9 - Number of days past due Toot Auto Supply...Ch. 9 - Aging of receivables schedule The accounts...Ch. 9 - Estimating allowance for doubtful accounts...Ch. 9 - Adjustment for uncollectible account Using data in...Ch. 9 - Estimating doubtful accounts Performance Bike Co....Ch. 9 - Entry for uncollectible accounts Using the data in...Ch. 9 - Entries for bad debt expense under the direct...Ch. 9 - Entries for bad debt expense under the direct...Ch. 9 - Effect of doubtful accounts on net income During...Ch. 9 - Effect of doubtful accounts on net income Using...Ch. 9 - Entries for bad debt expense under the direct...Ch. 9 - Entries for bad debt expense under the direct...Ch. 9 - Determine due date and interest on notes Determine...Ch. 9 - Entries for notes receivable Spring Designs ...Ch. 9 - Entries for notes receivable The series of five...Ch. 9 - Entries for notes receivable, including year-end...Ch. 9 - Entries for receipt and dishonor of note...Ch. 9 - Entries for receipt and dishonor of notes...Ch. 9 - Receivables on the balance sheet List any errors...Ch. 9 - Accounts receivable turnover and days sales in...Ch. 9 - Accounts receivable turnover and days sales in...Ch. 9 - Accounts receivable turnover and days sales in...Ch. 9 - Accounts receivable turnover Use the data in...Ch. 9 - Entries related to uncollectible accounts The...Ch. 9 - Aging of receivables; estimating allowance for...Ch. 9 - Compare two methods of accounting for...Ch. 9 - Details of notes receivable and related entries...Ch. 9 - Notes receivable entries The following data relate...Ch. 9 - Sales and notes receivable transactions The...Ch. 9 - Entries related to uncollectible accounts The...Ch. 9 - Aging of receivables; estimating allowance for...Ch. 9 - Compare two methods of accounting for...Ch. 9 - Details of notes receivable and related entries...Ch. 9 - Notes receivable entries The following data relate...Ch. 9 - Sales and notes receivable transactions The...Ch. 9 - Ethics in Action Bud Lighting Co. is a retailer of...Ch. 9 - Ethics in Action Bev Wynn, vice p resident of...Ch. 9 - Communication On January 1, Xtreme Co. began...Ch. 9 - Estimate uncollectible accounts For several years,...Ch. 9 - Accounts receivable turnover and days sales in...Ch. 9 - Accounts receivable turnover and days sales in...Ch. 9 - Accounts receivable turnover and days sales in...

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