2 Semester Cengage Now, Warren Accounting
26th Edition
ISBN: 9781305662308
Author: WARREN
Publisher: Cengage
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Chapter 9, Problem 9.12EX
Entry for uncollectible accounts
Using the data in Exercise 9-11, assume that the allowance for doubtful accounts for Selby’s Bike Co. had a debit balance of $7,200 as of December 31, 2016.
Journalize the
EX 9-11 Estimating doubtful accounts OBJ. 4
Selby’s Bike Co. is a wholesaler of motorcycle supplies. An aging of the company’s accounts receivable on December 31, 2016, and a historical analysis of the percentage of uncollectible accounts in each age category are as follows:
Estimate what the proper balance of the allowance for doubtful accounts should be as of December 31, 2016.
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Estimating Doubtful Accounts
Performance Bike Co. is a wholesaler of motorcycle supplies. An aging of the company's accounts receivable on December 31 and a historical analysis of the percentage of
uncollectible accounts in eadch age category are as follows:
Estimate what the proper balance of the allowance for doubtful accounts should be as of December 31.
Performance Bike Co.
Estimation of Uncollectible Accounts
December 31
Age Interval
Balance Estimated Uncollectible Accounts Percent
Estimated Uncollectible Accounts Amount
Not past due
$608,000
3/4%
1-30 days past due
66,900
2
31-60 days past due
30,400
61-90 days past due
21,900
17
91-180 days past due
15,800
38
Over 180 days past due
11,600
65
Total
$754,600
$4
Estimating doubtful accounts
Outlaw Bike Co. is a wholesaler of motorcycle supplies. An aging of the company's accounts
receivable on December 31 and a historical analysis of the percentage of uncollectible account
in each age category are as follows:
Age Class
Not past due
1-30 days past due
31-60 days past due
61-90 days past due
91-180 days past due
Over 180 days past due
Total
Estimate what the proper balance of the allowance for doubtful accounts should be as of
December 31.
Balance
$868,000
95,500
43,400
31,200
22,600
16,500
$1,077,200
Percent Uncollectible
1/2%
4
8
16
38
80
Estimating Doubtful Accounts
Performance Bike Co. is a wholesaler of motorcycle supplies. An aging of the company's accounts receivable on December 31 and a historical analysis of the percentage of uncollectible accounts in each age category are as follows:
Estimate the proper balance of the allowance for doubtful accounts should be as of December 31.
Performance Bike Co.
Estimation of Uncollectible Accounts
December 31
Estimated Uncollectible
Age Interval
Balance
Accounts Percent
Not past due
$888,000
1/2%
1-30 days past due
97,700
2
31-60 days past due
44,400
7
61-90 days past due
32,000
18
91-180 days past due
23,100
42
Over 180 days past due
16,900
65
Total
$1,102,100
Estimated Uncollectible
Accounts Amount
Chapter 9 Solutions
2 Semester Cengage Now, Warren Accounting
Ch. 9 - What are the three classifications of receivables?Ch. 9 - Dans Hardware is a small hardware store in the...Ch. 9 - What kind of an account (asset, liability, etc.)...Ch. 9 - After the accounts are adjusted and closed at the...Ch. 9 - A firm has consistently adjusted its allowance...Ch. 9 - Which of the two methods of estimating...Ch. 9 - Neptune Company issued a note receivable to...Ch. 9 - If a note provides for payment of principal of...Ch. 9 - The maker of a 240,000, 6%, 90-day note receivable...Ch. 9 - The note receivable dishonored in Discussion...
Ch. 9 - Prob. 9.1APECh. 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 Guzman Company received a 60-day,...Ch. 9 - Note receivable Prefix Supply Company received a...Ch. 9 - Prob. 9.6APECh. 9 - Prob. 9.6BPECh. 9 - Prob. 9.1EXCh. 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 Creative...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 Waddell...Ch. 9 - Adjustment for uncollectible accounts Using data...Ch. 9 - Estimating doubtful accounts Selbys Bike Co. is a...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 Master Designs...Ch. 9 - Entries for notes receivable The series of seven...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 - Prob. 9.25EXCh. 9 - Accounts receivable turnover and days sales in...Ch. 9 - Prob. 9.27EXCh. 9 - Prob. 9.28EXCh. 9 - Prob. 9.29EXCh. 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 - Prob. 9.1CPCh. 9 - Estimate uncollectible accounts For several years,...Ch. 9 - Prob. 9.3CPCh. 9 - Prob. 9.4CPCh. 9 - Accounts receivable turnover and days sales in...
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- Using the data in Exercise 9-11, assume that the allowance for doubtful accounts for Selbys Bike Co. had a debit balance of 7,200 as of December 31, 2016. Journalize the adjusting entry for uncollectible accounts as of December 31, 2016. Journalize the adjusting entry for uncollectible accounts as of December 31, 2016. Selbys Bike Co. is a wholesaler of motorcycle supplies. An aging of the companys accounts receivable on December 31, 2016, and a historical analysis of the percentage of uncollectible accounts in each age category are as follows: Estimate what the proper balance of the allowance for doubtful accounts should be as of December 31, 2016.arrow_forwardAging Receivables and Bad Debt Expense Perkinson Corporation sells paper products to a large number of retailers. Perkinsons accountant has prepared the following aging schedule for its accounts receivable at the end of the year. Before adjusting entries are entered, the balance in the allowance for doubtful accounts is a debit of $480. Required: 1. Calculate the desired postadjustment balance in Perkinsons allowance for doubtful accounts. 2. Determine bad debt expense for the year.arrow_forwardUsing data in Exercise 9-9, assume that the allowance for doubtful accounts for Waddell Industries has a credit balance of 6,350 before adjustment on August 31. Journalize the adjusting entry for uncollectible accounts as of August 31. Waddell Industries has a past history of uncollectible accounts, as follows. Estimate the allowance for doubtful accounts, based on the aging of receivables schedule you completed in Exercise 9-8. The accounts receivable clerk for Waddell Industries prepared the following partially completed aging of receivables schedule as of the end of business on August 31: The following accounts were unintentionally omitted from the aging schedule and not included in the preceding subtotals: a. Determine the number of days past due for each of the preceding accounts as of August 31. b. Complete the aging of receivables schedule by adding the omitted accounts to the bottom of the schedule and updating the totals.arrow_forward
- Estimating doubtful accounts Outlaw Bike Co. is a wholesaler of motorcycle supplies. An aging of the company’s accounts receivable on December 31 and a historical analysis of the percentage of uncollectible accounts in each age category are as follows:Estimate what the proper balance of the allowance for doubtful accounts should be as of December 31.arrow_forwardEstimating Doubtful Accounts Performance Bike Co. is a wholesaler of motorcycle supplies. An aging of the company's accounts receivable on December 31 and a historical analysis of the percentage of uncollectible accounts in each age category are as follows: Estimate the proper balance of the allowance for doubtful accounts should be as of December 31. Performance Bike Co. Estimation of Uncollectible Accounts December 31 Estimated Uncollectible Estimated Uncollectible Age Interval Balance Accounts Percent Accounts Amount Not past due $750,000 1/2% 1-30 days past due 82,500 4 31-60 days past due 37,500 7 61-90 days past due 27,000 15 91-180 days past due 19,500 39 Over 180 days past due 14,300 70 Total $930,800arrow_forwardEstimating doubtful accounts Outlaw Bike Co. is a wholesaler of motorcycle supplies. An aging of the company's accounts receivable on December 31 and a historical analysis of the percentage of uncollectible accounts in each age category are as follows: Age Class Not past due 1-30 days past due 31-60 days past due 61-90 days past due 91-180 days past due Over 180 days past due Balance Percent Uncollectible $628,000 69,100 31,400 22,600 16,300 11,900 $779,300 Age Class Not past due 1-30 days past due 31-60 days past due 61-90 days past due 91-180 days past due Over 180 days past due Total Balance $628,000 69,100 Estimate what the proper balance of the allowance for doubtful accounts should be as of December 31. Estimated Estimated 31,400 22,600 16,300 11,900 1/2% 3 $779,300 7 Uncollectible Accounts 7 15 41 Percent 15 70 1/2% 3 41 70 Uncollectible Accounts Amountarrow_forward
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