Jade began operations on January 1, 2020. From 2020 to 2022, Jade provided for doubtful accounts based on 5% annual credit sales. On January 1, 2023, Jade charged the method of determining the allowance for doubtful accounts using an aging schedule. In addition, Jade writes off all accounts receivable over 1-year-old. 2023 2022 2021 2020 Credit sales 15,000,000 9,500,000 8,000,000 6,000,000 Collections excluding recovery 11,700,000 8,200,000 6,700,000 4,500,000 Accounts written off during the year 200,000 120,000 80,000 None Recovery of accounts written off 100,000 40,000 35,000 None Amount Probability of collection 30 days or less 3,000,000 95% Between 31 and 60 days 1,500,000 80% Between 61 and 180 days 1,200,000 75% Between 181 and one year 1,200,000 50% Over one year - to be written off 100,000 0% 3) What is the allowance for doubtful accounts on December 31, 2023? A 1,350,000 B. 1,450,000 C. 1250,000 D. 1,000,000 4) What amount should be reported as doubtful account expense for 2023? A. 500,000 B. 600,000 C. 700,000 D. 400,000 5) What is the net realizable value of accounts receivable on December 31, 2023? A 6,900,000 B. 7,000,000 C. 5,550,000 D. 5,650,000

Jade began operations on January 1, 2020. From 2020 to 2022, Jade provided for doubtful accounts based on 5% annual credit sales. On January 1, 2023, Jade charged the method of determining the allowance for doubtful accounts using an aging schedule. In addition, Jade writes off all accounts receivable over 1-year-old. 2023 2022 2021 2020 Credit sales 15,000,000 9,500,000 8,000,000 6,000,000 Collections excluding recovery 11,700,000 8,200,000 6,700,000 4,500,000 Accounts written off during the year 200,000 120,000 80,000 None Recovery of accounts written off 100,000 40,000 35,000 None Amount Probability of collection 30 days or less 3,000,000 95% Between 31 and 60 days 1,500,000 80% Between 61 and 180 days 1,200,000 75% Between 181 and one year 1,200,000 50% Over one year - to be written off 100,000 0% 3) What is the allowance for doubtful accounts on December 31, 2023? A 1,350,000 B. 1,450,000 C. 1250,000 D. 1,000,000 4) What amount should be reported as doubtful account expense for 2023? A. 500,000 B. 600,000 C. 700,000 D. 400,000 5) What is the net realizable value of accounts receivable on December 31, 2023? A 6,900,000 B. 7,000,000 C. 5,550,000 D. 5,650,000

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter6: Cash And Receivables

Section: Chapter Questions

Problem 6MC: Prior to adjustments, Barrett Companys account balances at December 31, 2019, for Accounts...

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