On December 31, a company has an unadjusted credit balance of $1,450 in its Allowance for Doubtful Accounts. Following is a schedule of its December 31 accounts receivable by age. Age of Accounts Receivable Not yet due 1 to 30 days past due 31 to 60 days past due Accounts Receivable $ 86,000 Expected Percent Uncollectible 1.00% 51,600 2.50% 17,200 11.00% 61 to 90 days past due Over 90 days past due Total 8,600 37.00% 2,150 77.00% $ 165,550 Complete this question by entering your answers in the tabs below. Required 1 Required 2 Calculate the required balance of the Allowance for Doubtful Accounts at December 31 using an aging of accounts receivable. Estimated Uncollectible Accounts Receivable Percent Uncollectible Not due: X 1 to 30: X 31 to 60: 61 to 90: Over 90: Estimated balance of allowance for uncollectibles = < Required 1 Required 2 >

On December 31, a company has an unadjusted credit balance of $1,450 in its Allowance for Doubtful Accounts. Following is a schedule of its December 31 accounts receivable by age. Age of Accounts Receivable Not yet due 1 to 30 days past due 31 to 60 days past due Accounts Receivable $ 86,000 Expected Percent Uncollectible 1.00% 51,600 2.50% 17,200 11.00% 61 to 90 days past due Over 90 days past due Total 8,600 37.00% 2,150 77.00% $ 165,550 Complete this question by entering your answers in the tabs below. Required 1 Required 2 Calculate the required balance of the Allowance for Doubtful Accounts at December 31 using an aging of accounts receivable. Estimated Uncollectible Accounts Receivable Percent Uncollectible Not due: X 1 to 30: X 31 to 60: 61 to 90: Over 90: Estimated balance of allowance for uncollectibles = < Required 1 Required 2 >

College Accounting, Chapters 1-27

23rd Edition

ISBN:9781337794756

Author:HEINTZ, James A.

Publisher:HEINTZ, James A.

Chapter16: Accounting For Accounts Receivable

Section: Chapter Questions

Problem 5SEA: UNCOLLECTIBLE ACCOUNTSPERCENTAGE OF SALES AND PERCENTAGE OF RECEIVABLES At the end of the current...

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UNCOLLECTIBLE ACCOUNTSPERCENTAGE OF SALES AND PERCENTAGE OF RECEIVABLES At the end of the current year, the accounts receivable account of Parkers Nursery Supplies has a debit balance of 350,000. Credit sales are 2,300,000. Record the end-of-period adjusting entry on December 31, in general journal form, for the estimated uncollectible accounts. Assume the following independent conditions existed prior to the adjustment: 1. Allowance for Doubtful Accounts has a credit balance of 1,920. (a) The percentage of sales method is used and bad debt expense is estimated to be 1% of credit sales. (b) The percentage of receivables method is used and an analysis of the accounts produces an estimate of 24,560 in uncollectible accounts. 2. Allowance for Doubtful Accounts has a debit balance of 1,280. (a) The percentage of sales method is used and bad debt expense is estimated to be of 1% of credit sales. (b) The percentage of receivables method is used and an analysis of the accounts produces an estimate of 22,440 in uncollectible accounts.
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