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 9.7E
Bad Debt Expense, Aging of Accounts Receivable,
| Aging Category | Ending Balance | Percent Estimated Uncollectible |
| Current | $300,000 | 0% |
| 1-30 days past due | 620,000 | 12 |
| 31-60 days past due | 122,000 | 25 |
| 61-90 days past due | 173,500 | 70 |
| Ovor 90 days past duo | 63,000 | 90 |
The allowance for uncollectible accounts had a credit balance of $260,400 at the beginning of the year. During the year the company wrote off
Required
- a. Prepare all journal entries required to record the bad debt provision for the current year.
- b. Repeat part (a) assuming that the allowance for uncollectible accounts had a debit beginning balance of $23,545.
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1)
Sustainable Supplies prepares the following aging of receivables analysis:
Accounts
receivable
Percent
uncollectible
$840.
Total
Days Past Due
Current 1 to 30
$
$
$
57,600 40,000 9,000
1%
3%
31 to 61 to Over 90
60
90
$
3,600
5%
$
2,000
8%
$
3,000
Prepare the adjusting entry to record bad debts expense assuming the unadjusted balance in the
Allowance for Doubtful Accounts is a $500 credit.
11%
A) Debit Bad Debts Expense $840; credit Allowance for Doubtful Accounts
B) Debit Allowance for Doubtful Accounts $840; credit Bad Debts Expense $840.
C) Debit Bad Debts Expense $1,840; credit Allowance for Doubtful Accounts $1,840.
D) Debit Allowance for Doubtful Accounts $1,840; credit Bad Debts Expense $1,840.
E) Debit Bad Debts Expense $1,340; credit Allowance for Doubtful Accounts $1,340.
An aging of a company's accounts receivable indicates that the estimate of uncollectible receivables totals $4,269. If Allowance for
Doubtful Accounts has a $1,349 credit balance, the adjustment to record the bad debt expense for the period will require a
Oa. debit to Bad Debt Expense for $4,269.
Ob. debit to Bad Debt Expense for $2,920.
Oc. debit to Bad Debt Expense for $5,618.
Od. credit to Allowance for Doubtful Accounts for $1,349.
Background imformation:
The Lake Lucerne Company uses the allowance method of estimating bad debts expense. An aging schedule is prepared in order to calculate the balance in the allowance account.
The percentage uncollectible is calculated as followed:
1-30 days= 1.5%
31-60 days= 3.5%
61-90 days= 12%
91-365 days= 70%
Calculate the number of days each receivable is outstanding and Complete the Schedule of Accounts Receivable. Both are showed in the images attached for context and data. Make sure to show all work and formulas.
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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