Question

Daley Company prepared the following aging of receivables analysis at December 31. Days Past Due Total...

Daley Company prepared the following aging of receivables analysis at December 31.

Days Past Due
Total 0 1 to 30 31 to 60 61 to 90 Over 90
Accounts receivable $ 630,000 $ 408,000 $ 102,000 $ 48,000 $ 30,000 $ 42,000
Percent uncollectible 1 % 2 % 5 % 7 % 10 %


a.
Complete the below table to calculate the estimated balance of Allowance for Doubtful Accounts using aging of accounts receivable.
b. Prepare the adjusting entry to record Bad Debts Expense using the estimate from part a. Assume the unadjusted balance in the Allowance for Doubtful Accounts is a $4,800 credit.
c. Prepare the adjusting entry to record bad debts expense using the estimate from part a. Assume the unadjusted balance in the Allowance for Doubtful Accounts is a $1,300 debit.

Homework Answers

Answer #1

If you have any doubts please comment on the answer.

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
Daley Company prepared the following aging of receivables analysis at December 31. Days Past Due Total...
Daley Company prepared the following aging of receivables analysis at December 31. Days Past Due Total 0 1 to 30 31 to 60 61 to 90 Over 90 Accounts receivable $ 595,000 $ 401,000 $ 95,000 $ 41,000 $ 23,000 $ 35,000 Percent uncollectible 3 % 4 % 7 % 9 % 12 % a. Complete the below table to calculate the estimated balance of Allowance for Doubtful Accounts using aging of accounts receivable. b. Prepare the adjusting entry to...
Daley Company estimates uncollectible accounts using the allowance method at December 31. It prepared the following...
Daley Company estimates uncollectible accounts using the allowance method at 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 $ 660,000 $ 414,000 $ 108,000 $ 54,000 $ 36,000 $ 48,000 Percent uncollectible 1 % 2 % 5 % 7 % 10 % a. Estimate the balance of the Allowance for Doubtful Accounts assuming the company uses 6% of total accounts...
Daley Company estimates uncollectible accounts using the allowance method at December 31. It prepared the following...
Daley Company estimates uncollectible accounts using the allowance method at 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 $ 645,000 $ 411,000 $ 105,000 $ 51,000 $ 33,000 $ 45,000 Percent uncollectible 1 % 2 % 5 % 7 % 10 % a. Complete the below table to calculate the estimated balance of Allowance for Doubtful Accounts using the aging...
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...
Net Zero Products, a wholesaler of sustainable raw materials. Prepared the following aging of receivables analysis....
Net Zero Products, a wholesaler of sustainable raw materials. 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 $ 125,500 $ 83,000 $ 21,000 $ 8,500 $ 5,500 $ 7,500 Percent uncollectible 1 % 2 % 4 % 6 % 10 % 1. Estimate the balance of the Allowance for Doubtful Accounts using the aging of accounts receivable method. 2. Prepare the adjusting entry...
Net Zero Products, a wholesaler of sustainable raw materials. Prepared the following aging of receivables analysis....
Net Zero Products, a wholesaler of sustainable raw materials. 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 $ 171,000 $ 96,000 $ 34,000 $ 15,000 $ 12,000 $ 14,000 Percent uncollectible 1 % 4 % 6 % 9 % 12 % 1. Estimate the balance of the Allowance for Doubtful Accounts using the aging of accounts receivable method. 2. Prepare the adjusting entry...
At December 31, 2016, the trial balance of Garvey Company contained the following amount before adjustment....
At December 31, 2016, the trial balance of Garvey Company contained the following amount before adjustment.                                                                                                                                            Debits          Credits          Accounts Receivable                   $ 500,000                            Allowance for Doubtful Accounts                         $     4,800                      Sales Revenue                                          2,400,000 Instructions: (a)  Prepare the adjusting entry at December 31, 2016, for bad debts expense assuming that the aging schedule indicates that $26,000 of accounts receivables will be uncollectible.. (b)  Repeat part (a), assuming that instead of a credit balance there is a $4,800 debit balance in the Allowance for Doubtful Accounts. (c)  During the next month, January 2017,...
At December 31, 2017, Hawke Company reports the following results for its calendar year. Cash sales...
At December 31, 2017, Hawke Company reports the following results for its calendar year. Cash sales $1,905,000 Credit sales                                           5,682,000 In addition, its unadjusted trial balance includes the following items. Accounts receivable $1,270,100 debit Allowance for doubtful accounts 16,580 debit Required Prepare the adjusting entry for this company to recognize bad debts under each of the following independent assumptions. Bad debts are estimated to be 1.5% of credit sales. Bad debts are estimated to be 1% of total sales. An...
Required information [The following information applies to the questions displayed below.] At December 31, Hawke Company...
Required information [The following information applies to the questions displayed below.] At December 31, Hawke Company reports the following results for its calendar year. Cash sales $ 1,776,940 Credit sales $ 3,573,000 In addition, its unadjusted trial balance includes the following items. Accounts receivable $ 1,082,619 debit Allowance for doubtful accounts $ 22,700 debit Required: 1. Prepare the adjusting entry to record bad debts under each separate assumption. Bad debts are estimated to be 4% of credit sales. Bad debts...
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...