ABC Company reported accounts receivable of $225,000 and an allowance for doubtful accounts with a $28,000...
ABC Company reported accounts receivable of $225,000 and an allowance for
doubtful accounts with a $28,000 credit balance at January 1, 2021. ABC
Company records bad debt expense using the net credit sales method. The
following information was available for ABC Company for the years 2021
and 2022:
2021 2022
Cash collections from customers ? $275,780
Recoveries $3,600 ?
Net realizable value at December 31 $127,180 $154,240
Accounts receivable turnover ratio 2.40 1.80
Sales revenue $468,000 ?
% of sales estimated to be uncollectible 4% 7%
Accounts receivable at December 31 ? $205,000
Write-offs ? ?
Calculate the amount of recoveries recorded by ABC Company in 2022.Homework Answers
| Recoveries 2022 = $6,850 | |||
| Accounts receivable | |||
| Year 2021 | |||
| Beginning Balance | 225000 | Recoveries collected | 3600 |
| Recoveries (reinstated) | 3600 | Write off (from allowance account ) | 12500 |
| Sales | 468000 | collection from customers (balancing figure) | 515500 |
| Balance at end of 2021 | 165000 | ||
| year 2022 | |||
| Beg Balance | 165000 | collection from customers | 275780 |
| Sales | 333000 | Write off (balancing figure) | 17220 |
| Balance at end of 2022 | 205000 | ||
| ***For year 2021 | |||
| Accounts receivable turnover ratio | Net credit sales /Average accounts receivable | ||
| Average accounts receivable | 468000/2.4 | ||
| 195000 | |||
| Average accounts receivable | [Beginning receivable+ ending receivable ]/2 | ||
| Ending receivable | 195000*2-225000 | ||
| 165000 | |||
| **For year 2022 | |||
| Average accounts receivable | (165000+205000)/2 | ||
| 185000 | |||
| Net sales | 1.8*185000 | ||
| 333000 | |||
| Allowance for Doubtful account | |||
| Year 2021 | |||
| write off (balancing figure) | 12500 | Beginning balance | 28000 |
| Recoveries (reinstated) | 3600 | ||
| Bad debt expense [468000*4%] | 18720 | ||
| balance at end of year 2021 (165000-127180) | 37820 | ||
| Year 2022 | |||
| Write off (from accounts receivable) | 17220 | Beg balance | 37820 |
| Bad debt expense (333000*7%) | 23310 | ||
| Recoveries (balancing figure) | 6850 | ||
| Balance at end of year 2022 [205000-154240 NRV] | 50760 | ||
Add Answer to:
ABC Company reported accounts receivable of $225,000 and an allowance for
doubtful accounts with a $28,000...
At January 1, 2019, ABC Company reported an allowance for doubtful accounts with a $3,500 credit...
At January 1, 2019, ABC Company reported an allowance for doubtful accounts with a $3,500 credit balance. During 2019, ABC Company did not write-off any accounts receivable as uncollectible; however, ABC did record recoveries of previously written-off accounts receivable totaling $1,000. ABC Company prepared the following aging schedule at December 31, 2019: Accounts Receivable % Uncollectible not past due $103,600 2% 1-30 days past due 31,600 6% 31-60 days past due ? 8% 61-90 days past due 23,400 ? over...
Question 7 3.5 pts At January 1, 2019, ABC Company reported on allowance for doubtful accounts...
Question 7 3.5 pts At January 1, 2019, ABC Company reported on allowance for doubtful accounts with a $3,500 credit balance. During 2019, ABC Company did not write-off any accounts receivable as uncollectible; however, ABC did record recoveries of previously written off accounts receivable totaling $1,000. ABC Company prepared the following aging schedule at December 31, 2019: X Uncollectible Accounts Receivable not past due 5103,660 1-30 days past due 31,600 31-60 days past due 61-90 days past due 23,400 over...
D Question 7 3.5 pts At January 1, 2019, ABC Company reported an allowance for doubtful...
D Question 7 3.5 pts At January 1, 2019, ABC Company reported an allowance for doubtful accounts with a $3,500 credit balance. During 2019, ABC Company did not write-off any accounts receivable as uncollectible; however, ABC did record recoveries of previously written-off accounts receivable totaling $1,800. ABC Company prepared the following aging schedule at December 31, 2019: % Uncollectible Accounts Receivable not past due $103,600 1-30 days past due 31,600 31-60 days past due 61-90 days past due 23,400 over...
At the beginning of 2015, the balances for Accounts Receivable and Allowance for Doubtful Accounts were...
At the beginning of 2015, the balances for Accounts Receivable and Allowance for Doubtful Accounts were $77,000 and $5,144 (credit), respectively. During the current year, credit sales were $463,000 and collections on account were $341,000. In addition, $3,800 in uncollectible accounts were written off, and $750 of accounts previously written off were collected during the year. If management estimates bad debts based on 3 percent of total credit sales, determine the net realizable value of accounts receivable at December 31,...
Allowance for Doubtful Accounts The Company makes ongoing estimates relating to the collectability of accounts receivable...
Allowance for Doubtful Accounts The Company makes ongoing estimates relating to the collectability of accounts receivable and maintains an allowance for estimated losses resulting from the inability of its customers to make required payments. In determining the amount of the reserve, the Company considers historical levels of credit losses and significant economic developments within the retail environment that could impact the ability of its customers to pay outstanding balances and makes judgments about the creditworthiness of significant customers based on...
The following information is related to December 31, 2021 balances. • Accounts receivable $1400000 • Allowance...
The following information is related to December 31, 2021 balances. • Accounts receivable $1400000 • Allowance for doubtful accounts (credit) (100000) • Cash realizable value 1000000 During 2022 sales on account were $350000 and collections on account were $200000. The company wrote off $20000 in uncollectible accounts. An analysis of outstanding receivable accounts at year end indicated that bad debts should be estimated at $140000. Bad debt expense for 2022 is: A. $60000. B.$140000. C.$20000. D.$40000.
The following information is related to December 31, 2021 balances. • Accounts receivable $3220000 • Allowance...
The following information is related to December 31, 2021 balances. • Accounts receivable $3220000 • Allowance for doubtful accounts (credit) (285000) • Cash realizable value $2880000 During 2022 sales on account were $892000 and collections on account were $501000. Also during 2022 the company wrote off $49500 in uncollectible accounts. An analysis of outstanding receivable accounts at year end indicated that bad debts should be estimated at $322000. The change in the cash realizable value from the balance at 12/31/21...
QUESTION 1 At the beginning of 2015, the balances for Accounts Receivable and Allowance for Doubtful...
QUESTION 1 At the beginning of 2015, the balances for Accounts Receivable and Allowance for Doubtful Accounts were $77,000 and $5,144 (credit), respectively. During the current year, credit sales were $463,000 and collections on account were $341,000. In addition, $3,800 in uncollectible accounts were written off, and $750 of accounts previously written off were collected during the year. If management estimates bad debts based on 3 percent of total credit sales, determine the net realizable value of accounts receivable at...
Assume the following information for Halloween Corp. Accounts receivable (beginning balance) $143,000 Allowance for doubtful accounts...
Assume the following information for Halloween Corp. Accounts receivable (beginning balance) $143,000 Allowance for doubtful accounts (beginning balance) 11,470 Net credit sales 950,000 Collections 902,000 Write-offs of accounts receivable 5,500 Collections of accounts previously written off 2,300 Uncollectible accounts are expected to be 9% of the ending balance in accounts receivable. a) Prepare the entries to record sales and collections during the period, a separate entry to record the write-off of uncollectible accounts during the period, and another separate entry...
At December 31, 2021, Ivanhoe Imports reported this information on its balance sheet. Accounts receivable Less:...
At December 31, 2021, Ivanhoe Imports reported this information on its balance sheet. Accounts receivable Less: Allowance for doubtful accounts $615,000 35,000 During 2022, the company had the following transactions related to receivables. 1. Sales on account 2. Sales returns and allowances 3. Collections of accounts receivable 4. Write-offs of accounts receivable deemed uncollectible 5. Recovery of bad debts previously written off as uncollectible $3,020,000 50.000 2,720,000 45,000 21.000 (b) Enter the January 1, 2022, balances in Accounts Receivable and...
Question 7 3.5 pts At January 1, 2019, ABC Company reported on allowance for doubtful accounts with a $3,500 credit balance. During 2019, ABC Company did not write-off any accounts receivable as uncollectible; however, ABC did record recoveries of previously written off accounts receivable totaling $1,000. ABC Company prepared the following aging schedule at December 31, 2019: X Uncollectible Accounts Receivable not past due 5103,660 1-30 days past due 31,600 31-60 days past due 61-90 days past due 23,400 over...
D Question 7 3.5 pts At January 1, 2019, ABC Company reported an allowance for doubtful accounts with a $3,500 credit balance. During 2019, ABC Company did not write-off any accounts receivable as uncollectible; however, ABC did record recoveries of previously written-off accounts receivable totaling $1,800. ABC Company prepared the following aging schedule at December 31, 2019: % Uncollectible Accounts Receivable not past due $103,600 1-30 days past due 31,600 31-60 days past due 61-90 days past due 23,400 over...
QUESTION 1 At the beginning of 2015, the balances for Accounts Receivable and Allowance for Doubtful Accounts were $77,000 and $5,144 (credit), respectively. During the current year, credit sales were $463,000 and collections on account were $341,000. In addition, $3,800 in uncollectible accounts were written off, and $750 of accounts previously written off were collected during the year. If management estimates bad debts based on 3 percent of total credit sales, determine the net realizable value of accounts receivable at...
At December 31, 2021, Ivanhoe Imports reported this information on its balance sheet. Accounts receivable Less: Allowance for doubtful accounts $615,000 35,000 During 2022, the company had the following transactions related to receivables. 1. Sales on account 2. Sales returns and allowances 3. Collections of accounts receivable 4. Write-offs of accounts receivable deemed uncollectible 5. Recovery of bad debts previously written off as uncollectible $3,020,000 50.000 2,720,000 45,000 21.000 (b) Enter the January 1, 2022, balances in Accounts Receivable and...
Most questions answered within 3 hours.
-
The average length of time between arrivals at a turnpike
toll-booth is 26 seconds. What is...
asked 1 hour ago -
(a) A piston at 6.1 atm contains a gas that occupies a volume of
3.5 L....
asked 2 hours ago -
Please answer true or false. Words
cannot be changed or added in to make it true...
asked 2 hours ago -
An empty test tube weighs 15.923 grams. Then,
MgCl2•6H2O is added into the test tube. After...
asked 2 hours ago -
Assume memory access is 10 units of time and disk access is
10000 units of time....
asked 3 hours ago -
1. Are all good samples random?
2. Magazines often report surveys giving statistics such as “63%...
asked 3 hours ago -
Under all the various types of market structures, firms
must eventually earn some economic profits for...
asked 3 hours ago -
Consider the following fitness regime for a single locus trait
with two co-dominant alleles: w11 =...
asked 3 hours ago -
A large cable company reports the following.
80% of its customers subscribe to its cable TV...
asked 3 hours ago -
Please answer the question in brief.
Discuss the role of ERP in organizations. Are ERP tools...
asked 3 hours ago -
Discuss the pros and cons of collaborative software such
as SameTime. Does it increase productivity? What...
asked 3 hours ago -
Buying your in-laws a gift because it’s expected is
due to the ____________ motive of gift-giving....
asked 3 hours ago