Nana Company's a large department store located in a metropolitan area, has bee ncing difficulty in estimating its bad debts. The company has decided to prepare an agin e for its outstanding accounts receivable and estimate bad debts by the due dates of i ples. This analysis discloses the following information: Balance Age of Receivable Estimated Percentage Uncollectible $193,000 Under 30 days 0.8% 114,000 30-60 days 2.0% 73,000 61-120 days 5.0% 41,000 121-240 days 20.0% 25,000 241-360 days 35.0% 19,000 Over 360 days 60.0%

Nana Company's a large department store located in a metropolitan area, has bee ncing difficulty in estimating its bad debts. The company has decided to prepare an agin e for its outstanding accounts receivable and estimate bad debts by the due dates of i ples. This analysis discloses the following information: Balance Age of Receivable Estimated Percentage Uncollectible $193,000 Under 30 days 0.8% 114,000 30-60 days 2.0% 73,000 61-120 days 5.0% 41,000 121-240 days 20.0% 25,000 241-360 days 35.0% 19,000 Over 360 days 60.0%

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter9: Accounting For Receivables

Section: Chapter Questions

Problem 15PB: Shimmer Products is considering which bad debt estimation method works best for its company. It is...

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Shimmer Products is considering which bad debt estimation method works best for its company. It is deciding between the income statement method, balance sheet method of receivables, and balance sheet aging of receivables method. If it uses the income statement method, bad debt would be estimated at 5.6% of credit sales. If it were to use the balance sheet method, it would estimate bad debt at 13.7% percent of accounts receivable. If it were to use the balance sheet aging of receivables method, it would split its receivables into three categories: 0â€“30 days past due at 5%, 31â€“90 days past due at 21%, and over 90 days past due at 30%. There is currently a zero balance, transferred from the prior years Allowance for Doubtful Accounts. The following information is available from the year-end income statement and balance sheet. There is also additional information regarding the distribution of accounts receivable by age. Prepare the year-end adjusting entry for bad debt, using A. Income statement method B. Balance sheet method of receivables C. Balance sheet aging of receivables method D. Which method should the company choose, and why?
Organics Plus is considering which bad debt estimation method works best for its company. It is deciding between the income statement method, balance sheet method of receivables, and balance sheet aging of receivables method. If it uses the income statement method, bad debt would be estimated at 4% of credit sales. If it were to use the balance sheet method, it would estimate bad debt at 12% of accounts receivable. If it were to use the balance sheet aging of receivables method, it would split its receivables into three categories: 0â€“30 days past due at 6%, 31â€“90 days past due at 19%, and over 90 days past due at 26%. There is currently a zero balance, transferred from the prior years Allowance for Doubtful Accounts. The following information is available from the year-end income statement and balance sheet. There is also additional information regarding the distribution of accounts receivable by age. Prepare the year-end adjusting entry for bad debt, using A. Income statement method B. Balance sheet method of receivables C. Balance sheet aging of receivables method. D. Which method should the company choose, and why?
Conner Pride reports year-end credit sales in the amount of $567,000 and accounts receivable of $134,000. Conner uses the balance sheet method to report bad debt estimation. The estimation percentage is 4.6%. What is the estimated balance uncollectible using the balance sheet method? A. $26,082 B. $6,164 C. $260,820 D. $61,640
Under the direct write-off method of accounting for uncollectible accounts O A. the allowance account is increased for the actual amount of bad debt at the time of write-off. O B. balance sheet relationships are emphasized. O C. bad debts expense is always recorded in the period in which the revenue was recorded. O D. a specific account receivable is decreased for the actual amount of bad debt at the time of write-off.
Q2. XYZ Company, a retail business, is facing challenges with bad debts and wants to analyze the impact on its financial statements using the allowance method. Here are the relevant figures in Saudi riyals: Total Credit Sales: 800,000 SAR Beginning Allowance for Doubtful Accounts: 10,000 SAR Bad Debts Written Off: 15,000 SAR Ending Accounts Receivable: 120,000 SAR Bad Debts % (Estimated): 3% Question: Calculate the bad debts expense for the period, Determine the net realizable value (NRV) of accounts receivable, Analyze the impact of bad debts on the financial statements, and provide recommendations to manage and reduce bad debts.
Al Khuwair Corporation's has the following data: Accounts Receivable RO 520,000 Allowance for Doubtful Accounts (debit) 5,500 Bad debts are 8% of outstanding receivables. The company should record bad debt expense as: Select one: a. RO 440 b. RO 41,600 c. RO 525,500 d. None of the answers are correct O e. RO 47,100
Can you also send me how to do this one? 2. Refer to the data below for XYZ Corporation. Credit sales during 2018 850,000 Accounts Receivable—January 1, 2018 334,000 Collections from credit customers during 2018 725,000 Estimated uncollectible accounts based on an aging analysis 13,200 Customer accounts written off as uncollectible during 2018 12,000 Allowance for doubtful accounts 1,700(after write-off of uncollectible accounts) Answer the following questions using the above data: A. What is the balance of Accounts Receivable at December 31, 2018? B. If the aging approach is used to estimate bad debts, what should the balance in Allowance for Doubtful Accountsbe after the bad debts adjustment? C. If the aging approach is used to estimate bad debts, what amount should be recorded as bed debts expense for2018?
(a) A company has determined that the length of time a receivable is outstanding is the most appropriate credit risk characteristic for determining expected credit losses. The following is an aging schedule for the company's accounts receivable as at December 31, 2023: Customer's name Aber Bohr Chow Datz Others Expected rate of credit loss Expected credit losses Total amount owed $28,000 50,000 42,000 eTextbook and Media 27,000 158,000 $305,000 $41,160 Current (not yet due) Account Titles and Explanation $50,000 15,000 95,000 $160,000 3% $4,800 1-30 12,000 $9,000 $19,000 15,000 $36,000 6% Number of days past due $2,160 31-60 13,000 10% $3,200 61-90 $15,000 15,000 Debit $32,000 $30,000 $47,000 25% Over 90 $7,500 $27,000 20,000 On December 31, 2023, the unadjusted balance in the Allowance for Expected Credit Losses (prior to the aging analysis) was a credit of $20,000. 50% Journalize the adjusting entry to record the expected credit losses on December 31, 2023. (Credit account titles are…
PA1. LO 7.2 On June 30, Oscar Inc.'s bookkeeper is preparing to close the books for the month. The accounts receivable control total shows a balance of $2,820.76, but the accounts receivable subsidiary ledger shows total account balances of $2,220.76. The accounts receivable subsidiary ledger is shown here. Can you help find the mistake? ACCOUNTS RECEIVABLE SUBSIDIARY LEDGER Account: Amazoon AR No. 246 Balance Date Item Ref. Debit Credit Debit Beginning Balance Payment 1,200.50 Apr. 5 CR 175 1200.50 0.00 Account: Cadberry AR No. 357 Balance Date Item Ref. Debit Credit Debit Beginning Balance Invoice 210 877.30 Apr. 8 SJ 123 300 1,177.30 Account: Hewlit Pickard AR No. 468 Balance Date Item Ref. Debit Credit Debit Beginning Balance 172.99 Apr. 28 Invoice 211 SJ 123 100 272.99 Account: Neatflicks inc. AR No. 579 Balance Date Item Ref. Debit Credit Debit Beginning Balance Payment 1,570.47 1,070.47 Apr. 6 Apr. 22 CR 175 500 Invoice 212 CJ 123 300 770.47
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
PA1. LO 7.2On June 30, Oscar Inc.’s bookkeeper is preparing to close the books for the month. The accounts receivable control total shows a balance of $2,820.76, but the accounts receivable subsidiary ledger shows total account balances of $2,220.76. The accounts receivable subsidiary ledger is shown here. Can you help find the mistake?
D l. 3:56 Done a1961caa318d9983..._¿JWIÇ̟IJI Q2- Expand Furniture Store has credit sales of $400,000 in 2016 and a debit balance of $600 in the Allowance for Doubtful Accounts at year end. As of December 31, 2016, $130,000 of accounts receivable remain uncollected. The credit manager prepared an aging schedule of accounts receivable and estimates that $7,000 will prove to be uncollectible. On March 4, 2017, the credit manager authorizes a write-off of the $1,200 balance owed by Ahmad Instructions (а) Prepare the adjusting entry to record the estimated uncollectible accounts expense in 2016. (b) Show the balance sheet presentation of accounts receivable on December 31, 2016. (c) On March 4, before the write-off, assume the balance of Accounts Receivable account is $160,000 and the balance of Allowance for Doubtful Accounts is a credit of $3,000. Make the appropriate entry to record the write-off of the Ahmad account. Also show the balance sheet presentation of accounts receivable before…