General Journal | Debit | Credit | ||
a | Uncollectible accounts expense | 187500 | =7500000*2.5% | |
Allowance for doubtful accounts | 187500 | |||
b | Uncollectible accounts expense | 157000 | =84000+(98000-25000) | |
Allowance for doubtful accounts | 157000 | |||
c | Uncollectible accounts expense | 98000 | ||
Accounts receivable | 98000 |
The credit manager of Montour Fuel has gathered the following information about the company's accounts receivable...
The credit manager of Montour Fuel has gathered the following information about the company's accounts receivable and credit losses during the current year: $ 7,500,000 1,750,000 Net credit sales for the year Accounts receivable at year-end Uncollectible accounts receivable: Actually written off during the year Estimated portion of year-end receivables expected to prove uncollectible (per aging schedule) $ 98,888 84,000 182,000 a. Uncollectible accounts expense is estimated at an amount equal to 2.5 percent of net credit sales. b. Uncollectible...
View attached The credit manager of Montour Fuel has gathered the following information about the company's accounts receivable and credit losses during the current year Net credit sales for the year Accounts receivable at year-end 7,500,000 1,750,000 Uncollectible accounts receivable: Actually written off during the year Estimated portion of year-end receivables expected to prove uncollectible (per aging schedule) 87,000 84,000 171,000 a. Uncollectible accounts expense is estimated at an amount equal to 2.5 percent of net credit sales. b. Uncollectible...
Jaffer Sports Ltd. Accounts Receivable and Bad Debts Assume that you are working as credit manager of Jaffer Sports Ltd. At the end of the financial year ended 30 June 2017, you have gathered the following information about the company's accounts receivable and credit losses...
Credit Debit $195,800 Accounts Receivable Allowance for Doubtful Accounts Sales Revenue $ 1,480 903,200 (a) Prepare the adjusting entry at December 31, 2022, to record bad debt expense, assuming that the aging schedule indicates that $10,290 of accounts receivable will be uncollectible. (b) Repeat part (a), assuming that instead of a credit balance there is a $1,480 debit balance in Allowance for Doubtful Accounts. (c) During the next month, January 2023, a $2,270 account receivable is written off as uncollectible....
The following information relates to Windsor Inc.’s accounts receivable for the 2020 fiscal year: 1. An aging schedule of the accounts receivable as at December 31, 2020, is as follows: Age Net Debit Balance % to Be Applied after Write-off Is Made Under 60 days $173,000 2% 61–90 days 142,000 4% 91–120 days 44,000 * 8% Over 120 days 22,000 $5,200 definitely uncollectible; 20% of remainder is estimated uncollectible $381,000 *The $2,800 write off of receivables (see item 4 below)...
Accounts Receivable and aging schedule to be used at December 31, 2019 Age of Accounts Accounts Receivable 1-30 Days 31-60 Days 61-90 Days Over 90 Days $ 233,000 $ 139,000 $ 53,000 $ 11,000 $ 30,000 Estimated percent uncollectible 0.2% 2% 15% 35% Print Done The September 30, 2019, records of Perfecto Communications include these accounts: (Click the icon to view the September 30, 2019 account balances.) During the last quarter of 2019, the company completed the following selected transactions:...
Aging Method On January 1, 2019, Smith, Inc., has the following balances for accounts receivable and allowance for doubtful accounts: Accounts Receivable $376,000 Allowance for Doubtful Accounts (a credit balance) 4,200 During 2019, Smith had $2,860,000 of credit sales, collected $2,905,000 of accounts receivable, and wrote off $3,850 of accounts receivable as uncollectible. At year end, Smith performs an aging of its accounts receivable balance and estimates that $3,800 will be uncollectible. Cornerstone Exercise 5-28 (Algorithmic) Aging Method On January...
Explanation?? ACCOUNTS RECEIVABLE On November 1, 2019, Iginla Company showed the following account balances: Credit Account Accounts receivable Allowance for doubtful accounts Debit $35,000 $2,000 During the next fiscal year, the following events occurred: a.) b.) c.) Write-offs of uncollectible accounts totaled $3,500. One of the accounts written off above was collected: $700. On October 31, 2020 (the company's fiscal year end), using the aging-of-receivables method, the allowance for doubtful accounts was estimated to be $2,300. Required: a.) What is...
Problem 7-5 Presented below is information related to the Accounts Receivable accounts of Martinez Inc. during the current year 2017 1. An aging schedule of the accounts receivable as of December 31, 2017, is as follows. %to Be Applied after Correction Is Made Age Net Debit Balance Under 60 days 60-90 days 91-120 days $171,300 136,500 39,300 19% 3% 6% $3,800 definitely uncollectible; estimated remainder uncollectible is 25% Over 120 days 22,300 $369,400 The $3,000 write-off of receivables is related...
Raintree Cosmetic Company sells its products to customers on a credit basis. An adjusting entry for bad debt expense is recorded only at December 31, the company's fiscal year-end. The 2020 balance sheet disclosed the following: Current assets: Receivables, net of allowance for uncollectible accounts of $30,000 $432,000 During 2021, credit sales were $1,750,000, cash collections from customers $1,830,000, and $35,000 in accounts receivable were written off. In addition, $3,000 was collected from a customer whose account was written off...