Exercise 9-8 Aging of receivables method P3
Daley Company prepared the following aging of receivables analysis at December 31.
Days Past Due | ||||||
Total | 0 | 1 to 30 | 31 to 60 | 61 to 90 | Over 90 | |
Accounts receivable | $570,000 | $396,000 | $90,000 | $36,000 | $18,000 | $30,000 |
Percent uncollectible | 1% | 2% | 5% | 7% | 10% |
a. Estimate the balance of the Allowance for Doubtful Accounts using aging of accounts receivable
b. Prepare the adjusting entry to record bad debts expense using the estimate from part a. Assume the unadjusted balance in the Allowance for Doubtful Accounts is a $3,600 credit.
c. Prepare the adjusting entry to record bad debts expense using the estimate from part a. Assume the unadjusted balance in the Allowance for Doubtful Accounts is a $100 debit.
Part a
Accounts Receivable | Percent uncollectible | ||
Not due | 396000 | 1% | 3960 |
1 to 30 | 90000 | 2% | 1800 |
31 to 60 | 36000 | 5% | 1800 |
61 to 90 | 18000 | 7% | 1260 |
Over 90 | 30000 | 10% | 3000 |
Allowance for doubtful accounts | 11820 |
Part b
Date | Particulars | Debit | Credit | |
31-Dec | Bad debt expense (11820-3600) | 8220 | ||
Allowance for doubtful accounts(11820-3600) | 8220 | |||
( Being adjustment entry for bad debt expense) |
Part C
Date | Particulars | Debit | Credit | |
31-Dec | Bad debt expense (11820-100) | 11720 | ||
Allowance for doubtful accounts(11820-100) | 11720 | |||
( Being adjustment entry for bad debt expense) | ||||
Daley Company prepared the following aging of receivables analysis at December 31. Exercise 9-8 Aging of...
Daley Company prepared the following aging of receivables analysis at December 31. Exercise 98 Days Post TO P3 11 30 31 61 90 Oro 5570.000 $395.000 590.000 50.000 $13.000 Accounts receivable Percent collect $30.000 10 a. Estimate the balance of the Allowance for Doubtful Accounts using aging of accounts receivable. b. Prepare the adjusting entry to record bad debts expense using the estimate from part a. Assume the unadjusted balance in the Allowance for Doubtful Accounts is a $3,600 credit....
Daley Company prepared the following aging of receivables analysis at December 31. a. Estimate the balance of the Allowance for Doubtful Accounts assuming the company uses 5% of total accounts receivable to estimate uncollectibles, instead of the aging of receivables method. b. Prepare the adjusting entry to record Bad Debts Expense using the estimate from part a. Assume the unadjusted balance in the Allowance for Doubtful Accounts is a $12,500 credit. c. Prepare the adjusting entry to record bad debts expense using the estimate...
Daley Company prepared the following aging of receivables analysis at December 31. a. Estimate the balance of the Allowance for Doubtful Accounts assuming the company uses 4.5% of total accounts receivable to estimate uncollectibles, instead of the aging of receivables method. b. Prepare the adjusting entry to record Bad Debts Expense using the estimate from part a. Assume the unadjusted balance in the Allowance for Doubtful Accounts is a $12,000 credit. c. Prepare the adjusting entry to record bad debts expense using the...
Daley Company estimates uncollectible accounts using the allowance method at December 31. It prepared the following aging of receivables analysis. a. Complete the below table to calculate the estimated balance of Allowance for Doubtful Accounts using the aging of accounts receivable method. b. Prepare the adjusting entry to record Bad Debts Expense using the estimate from part a. Assume the unadjusted balance in the Allowance for Doubtful Accounts is a $4,800 credit. c. Prepare the adjusting entry to record bad debts expense using...
Daley Company prepared the following aging of receivables analysis at December 31.Days Past DueTotal0 1 to 30 31 to 60 61 to 90 Over 90 Accounts receivable$585,000$399,000$93,000$39,000$21,000$33,000Percent uncollectible 1%2%5%7% 10%a. Complete the below table to calculate the estimated balance of Allowance for Doubtful Accounts using aging of accounts receivable. b. Prepare the adjusting entry to record Bad Debts Expense using the estimate from part a. Assume the unadjusted balance in the Allowance for Doubtful Accounts is a $3,900 credit. c. Prepare the adjusting entry to record bad debts...
Refer to the information in Exercise 9.8 to complete the following requirements. Exercise 9-9 a. Estimate the balance of the Allowance for Doubtful Accounts assuming the company uses 4.5% of Percent of receivables total accounts receivable to estimate uncollectibles, instead of the aging of receivables method. method b. Prepare the adjusting entry to record bad debts expense using the estimate from part a. Assume the P3 unadjusted balance in the Allowance for Doubtful Accounts is a $12.000 credit. c. Prepare...
Daley Company estimates uncollectible accounts using the allowance method at December 31. It prepared the following aging of receivables analysis. Days Past DueTotal0 1 to 30 31 to 60 61 to 90 Over 90 Accounts receivable$570,000$396,000$90,000$36,000$18,000$30,000Percent uncollectible 1%2%5%7% 10%a. Complete the below table to calculate the estimated balance of Allowance for Doubtful Accounts using the aging of accounts receivable method. b. Prepare the adjusting entry to record Bad Debts Expense using the estimate from part a. Assume the unadjusted balance in the Allowance for Doubtful Accounts is a...
Exercise 7-8 Percent of receivables method LO P3 Daley Company estimates uncollectible accounts using the allowance method at December 31. It prepared the following aging of receivables analysis Days Past DueTotal0 1 to 30 31 to 60 61 to 90 Over 90 Accounts receivable$620,000$406,000$100,000$46,000$28,000$40,000Percent uncollectible 2%3%6%8% 11%a. Estimate the balance of the Allowance for Doubtful Accounts assuming the company uses 4% of total accounts receivable to estimate uncollectibles, instead of the aging of receivables method. b. Prepare the adjusting entry to record Bad Debts Expense using the estimate from...
7 Assignment Exercise 7-7 Aging of receivables method LO P3 Daley Company estimates uncollectible accounts using the allowance method at December 31. It prepared the following aging of receivables analysis. ints Days Past Due Skipped 1 Total $635,000 0 $400,000 to 30 $103,000 31 to 60 61 to 90 $49,000 $31,000 Over 90 $43,000 Book Accounts receivable Percent uncollectible Hint Print references a. Complete the below table to calculate the estimated balance of Allowance for Doubtful Accounts using the aging...
Required information The following information applies to the questions displayed below) Daley Company prepared the following aging of receivables analysis at December 31 Days Past Due Total $585,000 $399,000 Accounts receivable Percent uncollectible 1 to 30 31 to 60 61 to 90 Over 90 $93,000 $39,000 $21,000 $33,000 26 54 74 105 1 a. Estimate the balance of the Allowance for Doubtful Accounts assuming the company uses 6% of total accounts receivable to estimate uncollectibles, instead of the aging of...
> Part C is 11920
Anna Hickam Tue, Feb 7, 2023 10:13 AM