Intermediate Accounting - Myaccountinglab - Pearson Etext Access Card Student Value Edition
1st Edition
ISBN: 9780134047430
Author: Elizabeth A. Gordon, Jana S. Raedy, Alexander J. Sannella
Publisher: PEARSON
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Chapter 9, Problem 9.4E
Giaraldi Garden Products: Aged Schedule of Accounts Receivable
| Past Due | ||||||
| Customer | Current | 1-30 Days | 31-60 Days | 61-90 Days | Over 90 Days | Totals |
| Carey Company | $ 10,000 | $34,500 | $ 44.500 | |||
| Gibson, Ltd | $423,000 | $ 27000 | 450,000 | |||
| KW Quarterly | 33,000 | $ 67,000 | 1,500 | 101,500 | ||
| Onix Construction | 100,000 | 45,000 | 90,500 | 235,500 | ||
| Carpenter Lumber | 387.000 | 125,000 | 500 | 512,500 | ||
| Totals | $810,000 | $185,000 | $167,000 | $55,000 | $127,000 | $1,344,000 |
The company estimated an allowance for uncollectible accounts based on the following estimates
| Aging Category | Allowance Provided |
| Current | 3% |
| 1 -30 days past due | 6 |
| 31-60 days past due | 18 |
| 61-90 days past due | 45 |
| Over 90 days past due | 100 |
Giaraldi reported net credit sales of $18,500,000 for the current year. We present the company’s of accounts receivable and the allowance for uncollectible accounts:
Required
- a. Compute the balance required in the allowance for uncollectible accounts at the end of the year.
- b. Prepare the journal entry to record the bad debt provision for the current year.
- c. Independent of your answer to part (b) prepare the journal entry to record the bad debt provision for the current year assuming that the allowance for uncollectible accounts had a $30,000 debit balance.
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Customer
Bad Debt Expense, Aging of Accounts Receivable, Journal Entry.
Giaraldi Garden Products, Inc. developed an aged schedule of accounts receivable at the end of each year.
Giaraldi Garden Products: Aged Schedule of Accounts Receivable
Past Due
Current 1-30 Days 31-60 Days 61-90 Days Over 90 Days
The company estimated an allowance for uncollectible accounts based on the following estimates:
Aging Category
Current
Allowance Provided
3%
1-30 days past due
6%
31-60 days past due
18%
Totals
61-90 days past due
45%
Carey Company
$
10,000 $
34,500 $
44,500
Over 90 days past due
100%
Gibson, Ltd.
$
423,000 $
27,000
450,000
KW Quarterly
Onix Construction
33,000 $ 67,000
100,000
1,500
101,500
Giaraldi reported for the current year:
45,000
Carpenter Lumber
Totals
387,000
$
125,000
810,000 $ 185,000 $ 167,000 $
90,500
500
235,500
512,500
Net credit sales
$
18,500,000
55,000 $ 127,000 $ 1,344,000
The company's ending balances of accounts receivable and the allowance for uncollectible accounts…
question: Record the journal entries for the bad debt expense and $50 write off from the following:
A company is getting ready to publish their annual financial statements. They have the following beginning balances:
Beginning balance for gross accounts receivable (A) $2,000
beginning balance for Allowance for doubtful accounts (XA) $300
They make $10,000 in credit sales in the current period. Assume that 1% of credit sales are typically not collectible. If the income statement method is used, what are the reported (a.) bad debt expense and (b.) ending balance for the allowance for doubtful accounts?
please include classification of accounts and label debits and credits.
Marigold Inc. uses the allowance method to estimate uncollectibles. The company produced the following aging of the accounts receivable at year-end.
(a)
Correct answer icon
Your answer is correct.
Calculate the total estimated uncollectibles based on the below information.
Number of Days Outstanding
Total
0–30
31–60
61–90
91–120
Over 120
Accounts receivable
$212,900
$80,500
$47,100
$41,900
$25,500
$17,900
% uncollectible
1%
4%
5%
8%
20%
Estimated Bad debts
$enter a dollar amount
$enter a dollar amount
$enter a dollar amount
$enter a dollar amount
$enter a dollar amount
$enter a dollar amount
eTextbook and Media
List of Accounts
Attempts: 1 of 3 used
(b) - (d)
(b)
Prepare the year-end adjusting journal entry to record the Bad Debt Expense using the aged uncollectible accounts receivable…
Chapter 9 Solutions
Intermediate Accounting - Myaccountinglab - Pearson Etext Access Card Student Value Edition
Ch. 9 - Prob. 9.1QCh. 9 - Do companies always classify cash as a current...Ch. 9 - Prob. 9.3QCh. 9 - Do accountants typically measure accounts...Ch. 9 - Under the allowance method, will the actual...Ch. 9 - How does an entity record a subsequent recovery of...Ch. 9 - Does the aging of accounts receivable method of...Ch. 9 - Prob. 9.8QCh. 9 - What is the difference between pledging accounts...Ch. 9 - How do companies account for receivables that are...
Ch. 9 - Is the face value of a note receivable exchanged...Ch. 9 - What do firms use to record the sales value of a...Ch. 9 - Explain why a company must have highly effective...Ch. 9 - The following are held by YRT Corporation at...Ch. 9 - Fernandez Company had an accounts receivable...Ch. 9 - On its December 31, Year 2, balance sheet, Red...Ch. 9 - Stanberry Company sold 500,000 of net accounts...Ch. 9 - On November 30, Year 1, Derin Corporation agreed...Ch. 9 - Which of the following disclosures about accounts...Ch. 9 - Prob. 9.1BECh. 9 - Prob. 9.2BECh. 9 - Prob. 9.3BECh. 9 - Prob. 9.4BECh. 9 - Prob. 9.5BECh. 9 - Sales Discounts, Most-Likely-Amount Method. On...Ch. 9 - Allowance for Uncollectible Accounts, Write-Off....Ch. 9 - Allowance for Uncollectible Accounts, Write-Off....Ch. 9 - Allowance for Uncollectible Accounts, Recovery....Ch. 9 - Bad Debt Expense, Journal Entry. Paul Anchor...Ch. 9 - Bad Debt Expense. Journal Entry. Paul Anchor,...Ch. 9 - Bad Debt Expense, Aging of Accounts Receivable,...Ch. 9 - Prob. 9.13BECh. 9 - Prob. 9.14BECh. 9 - Prob. 9.15BECh. 9 - Assigned Receivables. Using the information...Ch. 9 - Factoring Receivables without Recourse. Nicks...Ch. 9 - Prob. 9.18BECh. 9 - Prob. 9.19BECh. 9 - Prob. 9.20BECh. 9 - Prob. 9.21BECh. 9 - Prob. 9.22BECh. 9 - Internal Controls. Identify whether the following...Ch. 9 - Prob. 9.24BECh. 9 - Prob. 9.25BECh. 9 - Prob. 9.26BECh. 9 - Prob. 9.27BECh. 9 - Prob. 9.28BECh. 9 - Prob. 9.1ECh. 9 - Volume Discounts, Sales Discounts. Sodesta Company...Ch. 9 - Prob. 9.3ECh. 9 - Bad Debt Expense, Aging of Accounts Receivable....Ch. 9 - Prob. 9.5ECh. 9 - Prob. 9.6ECh. 9 - Bad Debt Expense, Aging of Accounts Receivable,...Ch. 9 - Bad Debt Expense, Percentage of Accounts...Ch. 9 - Prob. 9.9ECh. 9 - Assigning Receivables, Factoring Receivables....Ch. 9 - Prob. 9.11ECh. 9 - Factoring Receivables with and without Recourse....Ch. 9 - Factoring Receivables without Recourse, Factoring...Ch. 9 - Prob. 9.14ECh. 9 - Prob. 9.15ECh. 9 - Prob. 9.16ECh. 9 - Prob. 9.18ECh. 9 - Prob. 9.1PCh. 9 - Prob. 9.2PCh. 9 - Prob. 9.3PCh. 9 - Prob. 9.4PCh. 9 - Prob. 9.5PCh. 9 - Bad Debt Expense, Aging of Accounts Receivable,...Ch. 9 - Prob. 9.7PCh. 9 - Prob. 9.8PCh. 9 - Prob. 9.9PCh. 9 - Prob. 9.10PCh. 9 - Prob. 9.11PCh. 9 - Prob. 1JCCh. 9 - Prob. 2JCCh. 9 - Prob. 1FSACCh. 9 - Prob. 1SSCCh. 9 - Prob. 2SSCCh. 9 - Prob. 1BCC
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