Question

Q2 Timber Company has given you the following information from its aging of accounts receivable.  Using  this information,...

Q2

Timber Company has given you the following information from its aging of accounts receivable.  Using  this information, determine the ending balance of the allowance for doubtful accounts and prepare the journal entry to record bad debt expense.

Current amount in the allowance for doubtful accounts is a $958 credit.

Current

$24,400

2% uncollectible

31-60 days

7,350

8% uncollectible

61-90 days

3,380

15% uncollectible

91 and up

1,220

30% uncollectible

Homework Answers

Answer #1

Number of Days

Receivables

Past Due

Amount

% uncollectible

Uncollectible amount

Current

$24,400

2%

$488

31-60

$7,350

8%

$588

61-90

$3,380

15%

$507

Over 90

$1,220

30%

$366

Adjusted balance required of Allowance for Doubtful Account (A)

$1,949

Unadjusted balance in the Allowance account (B)

$958

Bad Debt expense for Year : (A - B)

$991

>the ending balance of the allowance for doubtful accounts = $ 1949 Credit

>adjusting entry

Accounts title

Debit

Credit

Bad Debt Expense

$991

   Allowance for Doubtful account

$991

Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
A company uses the aging of accounts receivable method to estimate its bad debts expense. On...
A company uses the aging of accounts receivable method to estimate its bad debts expense. On December 31 of the current year an aging analysis of accounts receivable revealed the following: Accounts Receivable Account Age Estimated Uncollectible $       80,000 1 - 30 days 0.5%            60,000 31 - 60 days 7.0%            40,000 61 - 90 days 10.0%            10,000 Over 90 days 60.0% $     190,000 Total A. Calculate the amount of the Allowance for Doubtful Accounts that should be...
Finland Inc has the following Accounts Receivable Aging on March 31 Aging Bucket Current 1-90 days...
Finland Inc has the following Accounts Receivable Aging on March 31 Aging Bucket Current 1-90 days 91-180 days 181-365 days 366+ days Amount Outstanding 300,000 180,000 100,000 50,000 15,000 March sales were $320,000 February ending balance in Allowance for Doubtful Accounts was $30,000 Credit Finland uses the Percentage of Receivables Method and a 5% reserve rate. What journal entry should Finland book at the end of March to estimate bad debt? DR: Cash, Bad Debt Expense, Allowance for Doubtful Accounts,...
Daley Company estimates uncollectible accounts using the allowance method on December 31. It prepared the following...
Daley Company estimates uncollectible accounts using the allowance method on December 31. It prepared the following aging of receivables analysis. Days Past Due Total 0 1 to 30 31 to 60 61 to 90 Over 90 Accounts receivable $ 570,000 $ 396,000 $ 90,000 $ 36,000 $ 18,000 $ 30,000 Percent uncollectible 1 % 2 % 5 % 7 % 10 % a. Estimate the balance of the Allowance for Doubtful Accounts assuming the company uses 4.5% of total accounts...
Problem 8-4A Rigney Inc. uses the allowance method to estimate uncollectible accounts receivable. The company produced...
Problem 8-4A Rigney 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    286,200 94,800 60,800 55,400 41,400 $33,800 % uncollectible      2% 5% 6% 9% 21% Estimated Bad debts $ $ $ $ $ $ (b) Prepare the year-end adjusting journal entry...
Problem 9-3A Aging accounts receivable and accounting for bad debts LO P2, P3 [The following information...
Problem 9-3A Aging accounts receivable and accounting for bad debts LO P2, P3 [The following information applies to the questions displayed below.] Jarden Company has credit sales of $2,300,000 for year 2017. On December 31, 2017, the company’s Allowance for Doubtful Accounts has an unadjusted credit balance of $17,670. Jarden prepares a schedule of its December 31, 2017, accounts receivable by age. On the basis of past experience, it estimates the percent of receivables in each age category that will...
Oriole Company uses the allowance method to estimate uncollectible accounts receivable. The unadjusted balance in Allowance...
Oriole Company uses the allowance method to estimate uncollectible accounts receivable. The unadjusted balance in Allowance for Doubtful Accounts is a debit of $4,000. The company produced the following information from aging its accounts receivable at year end. Complete the aging schedule and calculate the total estimated uncollectible accounts. a.) Number of Days Outstanding Total 0–30 31–60 61–90 91–120 Accounts receivable $670,000 $320,000 $170,000 $130,000 $50,000 Estimated % uncollectible 3% 6% 10% 30% Estimated uncollectible accounts $ 47800 $ 9600...
Paul is making the annual accounts receivable and allowance for doubtful accounts adjustments at year end....
Paul is making the annual accounts receivable and allowance for doubtful accounts adjustments at year end. The proportion of uncollectible accounts is estimated during the year based on past experience which indicates 1.5% of net credit sales will be uncollectible. Total sales for the year were $2 million, of which 10% were cash transactions. Paul determines that a $10,000 account from Rent, Inc is uncollectible and will write off this account before making year-end adjustments. Below are the unadjusted account...
II. (a) The aging of Torme Designs' accounts receivable is shown below. Calculate the amount of...
II. (a) The aging of Torme Designs' accounts receivable is shown below. Calculate the amount of each periodicity range that is deemed to be uncollectible.(worth 30 points) ​ Est. Uncollectible Accts. Age Interval Balance Percentage Amount Not past due 850,000 3.50% 1-30 days past due 47,500 5.00% 31-60 days past due 21,750 10.00% 61-90 days past due 11,250 20.00% 91-180 days past due 5,065 30.00% 181-365 days past due 2,500 50.00% Over 365 days past due 1,145 95.00% Total 939,210...
Aging Method On January 1, 2019, Smith, Inc., has the following balances for accounts receivable and...
Aging Method On January 1, 2019, Smith, Inc., has the following balances for accounts receivable and allowance for doubtful accounts: Accounts Receivable $381,000 Allowance for Doubtful Accounts (a credit balance) 3,900 During 2019, Smith had $2,850,000 of credit sales, collected $2,905,000 of accounts receivable, and wrote off $3,850 of accounts receivable as uncollectible. At year end, Smith performs an aging of its accounts receivable balance and estimates that $3,800 will be uncollectible. Required: 1.  Calculate Smith's preadjustment balance in accounts receivable...
Sheridan Company uses the allowance method to estimate uncollectible accounts receivable. The unadjusted balance in Allowance...
Sheridan Company uses the allowance method to estimate uncollectible accounts receivable. The unadjusted balance in Allowance for Doubtful Accounts is a debit of $7,000. The company produced the following information from aging its accounts receivable at year end. Complete the aging schedule and calculate the total estimated uncollectible accounts. (Round answers to 0 decimal places, e.g. 5,275.) Number of Days Outstanding Total 0–30 31–60 61–90 91–120 Accounts receivable $630,000 $390,000 $120,000 $80,000 $40,000 Estimated % uncollectible 2% 5% 10% 30%...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT