Financial And Managerial Accounting
15th Edition
ISBN: 9781337902663
Author: WARREN, Carl S.
Publisher: Cengage Learning,
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Chapter 8, Problem 9E
Estimating allowance for doubtful accounts
Evers Industries has a past history of uncollectible accounts, as follows. Estimate the allowance for doubtful accounts, based on the aging of receivables schedule you completed in Exercise 8-8.
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Kirchhoff Industries has a past history of uncollectible accounts, as shown below.
Age Class
PercentUncollectible
Not past due
2%
1-30 days past due
6
31-60 days past due
25
61-90 days past due
35
Over 90 days past due
50
Estimate the allowance for doubtful accounts, based on the aging of receivables schedule below.
Kirchhoff IndustriesAging of Receivables Schedule
Customer
Balance
Not PastDue
1-30 DaysPast Due
31-60 DaysPast Due
61-90 DaysPast Due
Over 90 DaysPast Due
Subtotals
553,700
326,700
121,800
49,800
27,700
27,700
Conover Industries
18,900
18,900
Keystone Company
22,000
22,000
Moxie Creek Inc.
4,800
4,800
Rainbow Company
12,000
12,000
Swanson Company
27,700
27,700
Total receivables
639,100
354,400
133,800
54,600
49,700
46,600
Percentage uncollectible
2%
6%
25%
35%
50%
Allowance for Doubtful Accounts
fill in the blank 1
fill in the blank 2
fill in the blank 3…
An aging of a company's accounts receivable indicates the estimate of uncollectible receivables totals $7,900. If Allowance for Doubtful Accounts has a $700 credit balance, the adjustment to record the bad debt expense for the period will require a
Estimating Allowance for Doubtful Accounts
Kirchhoff Industries has a past history of uncollectible accounts, as follows.
Age Class
PercentUncollectible
Not past due
2%
1-30 days past due
4
31-60 days past due
18
61-90 days past due
40
Over 90 days past due
75
Estimate the allowance for doubtful accounts, based on the aging of receivables schedule below.
Kirchhoff Industries
Estimate the Allowance for Doubtful Accounts
Balance
Not PastDue
Days PastDue 1-30
Days PastDue 31-60
Days PastDue 61-90
Days PastDue Over 90
Subtotals
$1,050,000
$600,000
$220,000
$115,000
$85,000
$30,000
Conover Industries
30,000
30,000
Keystone Company
18,000
18,000
Moxie Creek Inc.
9,000
9,000
Rainbow Company
26,400
26,400
Swanson Company
46,600
46,600
Total receivables
1,180,000
626,400
266,600
124,000
103,000
60,000
Percentage uncollectible
2%
4%
18%
40%
75%…
Chapter 8 Solutions
Financial And Managerial Accounting
Ch. 8 - What are the three classifications of receivables?Ch. 8 - Dans Hardware is a small hardware store in the...Ch. 8 - What kind of an account (asset, liability, etc.)...Ch. 8 - After the accounts are adjusted and closed at the...Ch. 8 - A firm has consistently adjusted its allowance...Ch. 8 - Which of the two methods of estimating...Ch. 8 - Neptune Company issued a note receivable to...Ch. 8 - If a note provides for payment of principal of...Ch. 8 - Prob. 9DQCh. 8 - Prob. 10DQ
Ch. 8 - Direct write-off method Journalize the following...Ch. 8 - Allowance method Journalize the following...Ch. 8 - Percent of sales method At the end of the current...Ch. 8 - Analysis of receivables method At the end of the...Ch. 8 - Note receivable Prefix Supply Company received a...Ch. 8 - Accounts receivable turnover and days sales in...Ch. 8 - Prob. 1ECh. 8 - Prob. 2ECh. 8 - Entries for uncollectible accounts, using direct...Ch. 8 - Entries for uncollectible receivables, using...Ch. 8 - Entries to write off accounts receivable Creative...Ch. 8 - Providing for doubtful accounts At the end of the...Ch. 8 - Number of days past due Toot Auto Supply...Ch. 8 - Aging of receivables schedule The accounts...Ch. 8 - Estimating allowance for doubtful accounts Evers...Ch. 8 - Adjustment for uncollectible accounts Using data...Ch. 8 - Estimating doubtful accounts Outlaw Bike Co. is a...Ch. 8 - Entry for uncollectible accounts Using the data in...Ch. 8 - Entries for bad debt expense under the direct...Ch. 8 - Entries for bad debt expense under the direct...Ch. 8 - Effect of doubtful accounts on net income During...Ch. 8 - Effect of doubtful accounts on net income Using...Ch. 8 - Entries for bad debt expense under the direct...Ch. 8 - Entries for bad debt expense under the direct...Ch. 8 - Determine due date and interest on notes Determine...Ch. 8 - Entries for notes receivable Valley Designs issued...Ch. 8 - Entries for notes receivable The series of five...Ch. 8 - Entries for notes receivable, including year-end...Ch. 8 - Entries for receipt and dishonor of note...Ch. 8 - Entries for receipt and dishonor of notes...Ch. 8 - Prob. 25ECh. 8 - Allowance method entries The following...Ch. 8 - Aging of receivables; estimating allowance for...Ch. 8 - Compare two methods of accounting for...Ch. 8 - Details of notes receivable and related entries...Ch. 8 - Notes receivable entries The following data relate...Ch. 8 - Sales and notes receivable transactions The...Ch. 8 - Allowance method entries The following...Ch. 8 - Aging of receivables; estimating allowance for...Ch. 8 - Compare two methods of accounting for...Ch. 8 - Prob. 4PBCh. 8 - Prob. 5PBCh. 8 - Prob. 6PBCh. 8 - Prob. 1MADCh. 8 - Analyze Ralph Lauren Ralph Lauren Corporation (RL)...Ch. 8 - Analyze L Brands L Brands, Inc. (LB) sells womens...Ch. 8 - Compare Ralph Lauren and L Brands Use the data in...Ch. 8 - Prob. 5MADCh. 8 - Prob. 1TIFCh. 8 - Interest computations Bev Wynn, vice president of...Ch. 8 - Prob. 4TIFCh. 8 - Allowance for doubtful accounts For several years,...
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- Using data in Exercise 9-9, assume that the allowance for doubtful accounts for Waddell Industries has a credit balance of 6,350 before adjustment on August 31. Journalize the adjusting entry for uncollectible accounts as of August 31. Waddell Industries has a past history of uncollectible accounts, as follows. Estimate the allowance for doubtful accounts, based on the aging of receivables schedule you completed in Exercise 9-8. The accounts receivable clerk for Waddell Industries prepared the following partially completed aging of receivables schedule as of the end of business on August 31: The following accounts were unintentionally omitted from the aging schedule and not included in the preceding subtotals: a. Determine the number of days past due for each of the preceding accounts as of August 31. b. Complete the aging of receivables schedule by adding the omitted accounts to the bottom of the schedule and updating the totals.arrow_forwardKirchhoff Industries has a past history of uncollectible accounts, as follows. Estimate the allowance for doubtful accounts, based on the aging of receivables schedule you completed in Exercise 9-8.arrow_forwardWaddell Industries has a past history of uncollectible accounts, as follows. Estimate the allowance for doubtful accounts, based on the aging of receivables schedule you completed in Exercise 9-8. The accounts receivable clerk for Waddell Industries prepared the following partially completed aging of receivables schedule as of the end of business on August 31: The following accounts were unintentionally omitted from the aging schedule and not included in the preceding subtotals: a. Determine the number of days past due for each of the preceding accounts as of August 31. b. Complete the aging of receivables schedule by adding the omitted accounts to the bottom of the schedule and updating the totals.arrow_forward
- Background imformation: The Lake Lucerne Company uses the allowance method of estimating bad debts expense. An aging schedule is prepared in order to calculate the balance in the allowance account. The percentage uncollectible is calculated as followed: 1-30 days= 1.5% 31-60 days= 3.5% 61-90 days= 12% 91-365 days= 70% Calculate the number of days each receivable is outstanding and Complete the Schedule of Accounts Receivable. Both are showed in the images attached for context and data. Make sure to show all work and formulas.arrow_forwardEstimating Allowance for Doubtful Accounts Kirchhoff Industries has a past history of uncollectible accounts, as shown below. Age Class Not past due 1-30 days past due 31-60 days past due 61-90 days past due Over 90 days past due Customer Subtotals Conover Industries Keystone Company Moxie Creek Inc. Rainbow Company Swanson Company Total receivables Estimate the allowance for doubtful accounts, based on the aging of receivables schedule below. Kirchhoff Industries Aging of Receivables Schedule Percentage uncollectible Percent Uncollectible Allowance for Doubtful Accounts 2% 6 20 Balance 30 45 Not Past 1-30 Days 31-60 Days 61-90 Days Over 90 Days Due Past Due Past Due 798,900 471,400 175,800 Past Due Past Due 71,900 17,900 20,700 6,700 9,500 26,300 26,300 880,000 497,700 185,300 2% 6% 9,500 6,700 78,600 20% 39,900 20,700 60,600 30% 39,900 17,900 57,800 45%arrow_forwardNet Zero Products, a wholesaler of sustainable raw materials, prepares the following aging of receivables analysis. (1) Estimate the balance of the Allowance for Doubtful Accounts using the aging of accounts receivable method. (2) Prepare the adjusting entry to record bad debts expense assuming the unadjusted balance in the Allowance for Doubtful Accounts is a $1,000 credit.arrow_forward
- Estimating Allowance for Doubtful Accounts Evers Industries has a past history of uncollectible accounts, as follows. Age Class Percent Uncollectible Not past due 1 % 1-30 days past due 3 31-60 days past due 12 61-90 days past due 30 Over 90 days past due 75 Estimate the allowance for doubtful accounts, based on the aging of receivables information provided in the chart below. Evers Industries Estimate of Allowance for Doubtful Accounts Balance Not PastDue Days PastDue 1-30 Days PastDue 31-60 Days PastDue 61-90 Days PastDue Over 90 Total receivables 1,124,500 607,400 233,000 121,600 96,500 66,000 Percentage uncollectible 1% 3% 12% 30% 75% Allowance for doubtful accountsarrow_forwardAn aging of a company's accounts receivable indicates that $5,539 are estimated to be uncollectible. If Allowance for Doubtful Accounts has a $900 credit balance, the adjustment to record bad debts for the period will require a credit to the Allowance for Doubtful Accounts of:arrow_forwardAn aging of a company's accounts receivable indicates that the estimate of the uncollectible accounts totals $4,549. If Allowance for Doubtful Accounts has a $1,328 credit balance, the adjustment to record the bad debt expense for the period will require a Select the correct answer. credit to Allowance for Doubtful for $4,549. debit to Allowance for Doubtful Accounts for $3,221. debit to Allowance for Doubtful Accounts for $4,549 debit to Bad Debt Expense for $3,221.arrow_forward
- Estimating Allowance for Doubtful Accounts Kirchhoff Industries has a past history of uncollectible accounts, as shown below. Age Class Percent Uncollectible Not past due 2% 1-30 days past due 5 31-60 days past due 20 61-90 days past due 30 Over 90 days past due 45 Estimate the allowance for doubtful accounts, based on the aging of receivables schedule below. Kirchhoff Industries Aging of Receivables Schedule Customer Balance Not Past Due 1-30 Days Past Due 31-60 Days Past Due 61-90 Days Past Due Over 90 Days Past Due Subtotals 665,900 392,900 146,500 59,900 33,300 33,300 Conover Industries 13,900 13,900 Keystone Company 17,100 17,100 Moxie Creek Inc. 6,400 6,400 Rainbow Company 9,600 9,600 Swanson Company 30,000 30,000 Totals 742,900 422,900 156,100 66,300 50,400 47,200 Percentage uncollectible 2% 5% 20% 30% 45% Allowance for Doubtful Accounts fill in the blank 1 fill in the blank 2…arrow_forwardEstimating Allowance for Doubtful Accounts Kirchhoff Industries has a past history of uncollectible accounts, as shown below. Age Class Percent Uncollectible Not past due 2% 1-30 days past due 5 31-60 days past due 20 61-90 days past due 30 Over 90 days past due 45 Estimate the allowance for doubtful accounts, based on the aging of receivables schedule below. Kirchhoff Industries Aging of Receivables Schedule Customer Balance Not Past Due 1-30 Days Past Due 31-60 Days Past Due 61-90 Days Past Due Over 90 Days Past Due Subtotals 732,800 432,400 161,200 66,000 36,600 36,600 Conover Industries 15,700 15,700 Keystone Company 18,300 18,300 Moxie Creek Inc. 4,500 4,500 Rainbow Company 11,700 11,700 Swanson Company 23,000 23,000 Totals 806,000 455,400 172,900 70,500 54,900 52,300 Percentage uncollectible 2% 5% 20% 30% 45% Allowance for Doubtful Accounts fill in the blank 1 fill in the blank 2…arrow_forwardAn aging of a company's accounts receivable indicates the estimate of uncollectible receivables totals $5,249. If Allowance for Doubtful Accounts has a $1,383 credit balance, the adjustment to record the bad debt expense for the period will require a Oa. debit to Bad Debt Expense for $3,866. Ob. credit to Allowance for Doubtful Accounts for $5,249. Oc. debit to Bad Debt Expense for $1.383. Od. debit to Bad Debt Expense for $5,249. Dasarrow_forward
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