Solution for Problem 11:
Calculation of Allowance for Uncollectible account balance for the year end 2018:
Particulars | Amount |
Allowance for Uncollectible account receivables balance at the beginning of 2018 | 13800 |
Less: Receivables Written off as Uncollectible during the year 2018 | -18700 |
Add: Allowance for Uncollectible account receivables provided for the Current year (2% of Credit Sales)i.e 0.02* $790,000 | 15800 |
Allowance for Uncollectible account balance at the end of 2018 | 10900 |
Ledger A/c will be as follows for above:
Allowance for Uncollectible account receivables a/c ( Ledger) | |||||
Dr Cr | |||||
Date | Particulars | Amount | Date | Particulars | Amount |
31st Dec 2018 | To Write off of Uncollectibles | 18700 | 1st January 2018 | By Balance b/d (Opening Balance) | 13800 |
31st Dec 2018 | By Profit /loss a/c ( Income Statement) | 15800 | |||
31st Dec 2018 | By Balance ( Carried forward to next year) | 10900 | |||
29600 |
29600 |
please show work 11. Caruthers Company uses the allowance method to account for bad debts. At...
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debts on the basis of the aging schedule. Show the T-account for the Allowance for Bad Debts at December 31, 2018. Debts by using the age of each account. * Data Table Age of Accounts 1-30 Days Accounts Receivable $ 60,000 Estimated percent uncollectibles 0.5% 31-60 Days $ 40,000 3.0 % 61-90 Days $ 15,000 5.0% Over 90 Days $ 25,000 50.0 % Print Done < Answer. Clear All using the age of each account. Acd 1-90 i Requirements Days...
e basis of the aging schedule. Show the T-account for the Allowance for Bad Debts at December 31, 2018. ng the age of each account counts X i Data Table Age of Accounts 31-60 Days Over 90 Days 1-30 Days 61-90 Days 25,000 Accounts Receivable 75,000 $ 15,000 $ 70,000 $ Estimated percent uncollectible 0.5% 3.0 % 9.0 % 50.0 % Done Print Print Done We were unable to transcribe this imageHomework: Chapter 8 Homework Save Score: 0 of 15...
The balance of the allowance for bad debts account after adjustment, using the percentage of sales method, must be equal to the percent of uncollectible accounts multiplied by the amount of credit sales. True False