Domino Company uses the aging of accounts receivable method to estimate uncollectible accounts expense. Domino began Year 2 with balances in Accounts Receivable and Allowance for Doubtful Accounts of $44,390 and $3,470, respectively. During the year, the company wrote off $2,640 in uncollectible accounts. In preparation for the company's Year 2 estimate, Domino prepared the following aging schedule: Number of days Receivables % Likely to be past due amount uncollectible Current $ 71,000 1% 0-30 27,000 5% 31-60 6,860 10% 61-90 3,520 25% Over 90 3,200 50% Total $ 111,580 What will Domino record as Uncollectible Accounts Expense for Year 2?
Un-adjusted Balance in Allowance account =Beginning balance -Write off
= 3470 - 2640
= $ 830
SCHEDULE OF ESTIMATED ALLOWANCE FOR DOUBTFUL ACCOUNT AT END | |||
current | 71000 | 1% | 71000*1%= 710 |
0-30 | 27000 | 5% | 1350 |
31-60 | 6860 | 10% | 686 |
61-90 | 3520 | 25% | 880 |
over 90 | 3200 | 50% | 1600 |
ESTIMATED ALLOWANCE FOR DOUBTFUL ACCOUNT AT END | 5226 |
Uncollectible Accounts Expense = Balance at end -unadjusted balance
= 5226 - 830
= $ 4396
Domino Company uses the aging of accounts receivable method to estimate uncollectible accounts expense. Domino began...
Domino Company uses the aging of accounts receivable method to estimate uncollectible accounts expense. Domino began Year 2 with balances in Accounts Receivable and Allowance for Doubtful Accounts of $47,270 and $3,740, respectively. During the year, the company wrote off $2,790 in uncollectible accounts. In preparation for the company's Year 2 estimate, Domino prepared the following aging schedule: Number of days past due Receivables % Likely to be uncollectible Current $80,000 1% 0-30 29,100 5% 31-60 7,760 10% 61-90 4,120...
QUESTION 4 Domino Company ages its accounts receivable to estimate bad debes expense Domino began Year 2 wich balances in Accounts Receivable and Allowance for Doubtful Accounts of $40,170 and 53080, respectively. During Year the company wrote off 52420 in uncollecoble accounts. In preparation for the companys estimate of bad debes expense for Year 2, Domino prepared the following aging schedule: Number of Days Receivables aukely to be 0-30 What amount will be reported as bad debes expense on the...
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