INGAT Company showed the following information related to the accounts receivable in order to estimate bad debts through the use of aging. The credit period of the company is 30 days on the average. Age of Receivables Amount Under 30 days ₱4,000,000 31 to 60 days 1,500,000 61 to 90 days 1,000,000 91 to 120 days 500,000 121 to 150 days 200,000 151 to 180 days 100,000 The company, based on experience, has the following percentage of collectability: Accounts which are overdue for less than 30 days 97% Accounts which are overdue 31 to 60 days 90% Accounts which are overdue 61 to 90 days 75% Accounts which are overdue 91 to 120 days 55% Accounts which are overdue 121 to 150 days 30% Accounts which are overdue for over 150 days 25% What is the carrying value of INGAT’s accounts receivable for balance sheet reporting purposes

INGAT Company showed the following information related to the accounts receivable in order to estimate bad debts through the use of aging. The credit period of the company is 30 days on the average. Age of Receivables Amount Under 30 days ₱4,000,000 31 to 60 days 1,500,000 61 to 90 days 1,000,000 91 to 120 days 500,000 121 to 150 days 200,000 151 to 180 days 100,000 The company, based on experience, has the following percentage of collectability: Accounts which are overdue for less than 30 days 97% Accounts which are overdue 31 to 60 days 90% Accounts which are overdue 61 to 90 days 75% Accounts which are overdue 91 to 120 days 55% Accounts which are overdue 121 to 150 days 30% Accounts which are overdue for over 150 days 25% What is the carrying value of INGAT’s accounts receivable for balance sheet reporting purposes

Cornerstones of Financial Accounting

4th Edition

ISBN:9781337690881

Author:Jay Rich, Jeff Jones

Publisher:Jay Rich, Jeff Jones

Chapter5: Sales And Receivables

Section: Chapter Questions

Problem 85APSA: Determining Bad Debt Expense Using the Aging Method At the beginning of the year, Tennyson Auto...

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Sunland Inc. uses the allowance method to estimate uncollectible accounts receivable. The company produced the following aging of the accounts receivable at year-end. (a) Correct answer icon Your answer is correct. Calculate the total estimated bad debts based on the below information. Number of Days Outstanding Total 0–30 31–60 61–90 91–120 Over 120 Accounts receivable 200,900 77,000 45,800 38,700 22,900 $ 16,500 % uncollectible 2% 5% 6% 9% 21% Estimated Bad debts $ enter a dollar amount $ enter a dollar amount $ enter a dollar amount $ enter a dollar amount
45, Buttercup Company showed the following information related to the accounts receivable in order to estimate bad debts through the use of the aging. The credit period of the company is 30 days on the average. Age of Receivables Under 30 days 31- 60 days 61 - 90 days 91 - 120 days 121 - 150 days 151 - 180 days Amount P4,000,000 1,500,000 1,000,000 500,000 200,000 100,000 Based on experience, Buttercup has the following percent of collectibility: Accounts which are overdue for less than 30 days Accounts which are overdue 31 - 60 days Accounts which are overdue 61 – 90 days Accounts which are overdue 91 - 120 days Accounts which are overdue 121 - 150 days Accounts which are overdue for over 150 days What is the net realizable value of accounts receivable? 96% 90% 75% 55% 35% 5% a. P6,135,000 b. P6,290,000 c. P6,385,000 d. P6,860,000
I NEED HELP FINDING THE DOLLAR AMOUNT Vaughn Inc. uses the allowance method to estimate uncollectible accounts receivable. The company produced the following aging of the accounts receivable at year-end. Calculate the total estimated bad debts based on the below information. Number of Days Outstanding Total 0–30 31–60 61–90 91–120 Over 120 Accounts receivable 331,400 104,000 70,800 65,400 49,100 $42,100 % uncollectible 2% 5% 6% 9% 21% Estimated Bad debts $enter a dollar amount $enter a dollar amount $enter a dollar amount $enter a dollar amount $enter a dollar amount $enter a dollar amount
12. APIE Company showed the following information related to the accounts receivable in order to estimate bad debts through the use of the aging. The credit period of the company is 30 days on the average. Age of Receivables Under 30 days 31-60 days 61-90 days 91-120 days 121-150 days 151-180 days Amount 4,000,000 1,500,000 1,000,000 500,000 200,000 100,000 The company based on experience has the following percent of collectibility: Accounts which are overdue for less than 30 days Accounts which are overdue 31 - 60 days Accounts which are overdue 61 – 90 days Accounts which are overdue 91 - 120 days Accounts which are overdue 121 - 150 days Accounts which are overdue for over 150 days 96% 90% 75% 55% 35% 5% What is the net realizable value of accounts receivable?
Blossom Inc. uses the allowance method to estimate uncollectibles. The company produced the following aging of the accounts receivable at year-end. (a) Calculate the total estimated uncollectibles based on the below information. Accounts receivable % uncollectible Estimated Bad debts $ Total $216,800 0-30 $81,000 2% 31-60 $50,000 5% Number of Days Outstanding $ 61-90 $42,100 6% $ 91-120 $25,700 9% Over 120 $18,000 21%
Sheridan Inc. uses the allowance method to estimate uncollectible accounts receivable. The company produced the following aging of the accounts receivable at year-end. (a) Calculate the total estimated bad debts based on the below information. Number of Days Outstanding 0-30 31-60 61-90 91-120 Over 120 84,900 53,100 47,300 31,200 $24,400 2% 5% 6% 9% 21% 2$ 24 $ 24 Texthook and Media
The company uses the Aging of Accounts Receivable method to estimate bad debts. The company has the following information of Accounts Receivable as at 31 April 2021. Number of Days Past-due 1 - 30 31 - 60 61-90 Accounts Receivable $65,000 $32,000 $9,000 Estimated Uncollectible % 3% 5% 9% Before the adjustment is recorded, the Allowance for Doubtful Accounts has a $1,660 credit balance. The selected information from the accounting records on 1 April 2021 is as follows. The company uses the perpetual inventory system and the LIFO method for its inventory, reporting the beginning inventory as follows: 400 units at a per-unit cost of $30 (purchased on 20 Mar. 2021) 600 units at a per-unit cost of $34 (purchased on 28 Mar. 2021) The following transactions occurred in April 2021. 6 Apr. Sold 700 units of inventory at a per-unit selling price of $75 with terms 5/15, n/60. 8 Apr. Wrote off a $2,600 customer’s account balance,…
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.
A company uses the percent of receivables method to estimate doubtful accounts. At the end of the calendar year, it has the following unadjusted balances: Accounts Receivable, debit balance of Php 280,000 and Allowance for Doubtful Accounts, debit balance of Php 2,000, Assuming 6% of outstanding accounts receivable at the end of the current year are estimated to be uncollectible, what amount should be debited to Bad Debts Expense?
The following accounts were found in the ledger of the Company on December 31 of the current year: Dr. Accounts Receivable - P356,800; Cr. Allowance for bad debts - P8,760; Cr. Cash Sales - P913,800; Cr. Credit Sales - P1,851,000. Analysis indicates that 5% of the outstanding accounts receivable will not be collected. How much will be adjustment necessary on December 31 for Allowance for bad debts?
An aging of a company's accounts receivable indicates that $13,000 are estimated to be uncollectible. If Allowance for Doubtful Accounts has a $1,200 credit balance, the adjustment to record bad debts for the period will require a Select one: a. credit to Allowance for Doubtful Accounts for $13,000. b. debit to Bad Debt Expense for $12,800 C. debit to Bad Debt Expense for $13,000. d. The answer does not exist e. debit to Allowance for Doubtful Accounts for $11,800. Previous page Next page Jump to...
3. Marian Company uses the allowance method of accounting for bad debts. The following summary schedule was prepared from an aging of accounts receivable outstanding on December 31 of the current year: No. of Days Outstanding Amount Probability of Collection 0 to 30 days 5,000,000 98% 31 to 60 days 2,000,000 90% Over 60 days 1,000,000 80% The following additional information is available for the current year: Net credit sales for the year 40,000,000 Allowance for doubtful accounts: Balance, January 1 450,000 (cr) Balance before adjustment, December 31 20,000 (dr) If Marian Company bases its estimate on the aging of accounts receivable, what is the amount of doubtful accounts expense for the current year?