Question

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 $10200 $13000

1.) Record the bad debt adjusting entry using the information determined in part (a)

Homework Answers

Answer #1
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 $47,800 $9,600 $10,200 $13,000 $15,000

Total estimated uncollectible accounts = $ 47,800

Bad Debt expense = Allowance for doubtful accounts, ending + Un adjusted Allowance for doubtful accounts

= 47,800 + 4,000

= $ 51,800

General Journal Debit Credit
Bad Debt Expense $ 51,800
Allowance for doubtful accounts $ 51,800
(To record bad debt expense)

Kindly give a positive rating if you are satisfied with this solution and please ask if you have any query.

Thanks

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
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%...
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...
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 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...
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...
Oriole Company uses the percentage-of-receivables basis to record bad debt expense. Accounts receivable (ending balance) $510,000...
Oriole Company uses the percentage-of-receivables basis to record bad debt expense. Accounts receivable (ending balance) $510,000 (debit) Allowance for doubtful accounts (unadjusted) 5,400 (debit) The company estimates that 2% of accounts receivable will become uncollectible. (a) Prepare the adjusting journal entry to record bad debt expense for the year. (Credit account titles are automatically indented when amount is entered. Do not indent manually.) Account Titles and Explanation Debit Credit (b) What is the ending (adjusted) balance in Allowance for Doubtful...
Cedar Mill, Inc. uses the Aging of Accounts Receivable method for estimating uncollectible accounts. The accounting...
Cedar Mill, Inc. uses the Aging of Accounts Receivable method for estimating uncollectible accounts. The accounting records show the following information at the end of the year: Number of Days Unpaid 0 - 30 31 - 60 61 - 90 Over 90 Accounts Receivable $ 740,000 $ 480,000 $ 220,000 $ 160,000 Estimated % Uncollectible 5 % 10 % 15 % 25 % If the unadjusted credit balance in the Allowance for Doubtful Accounts account before is $30,000, what would...
Shamrock Merchandising uses an aging schedule to determine its estimated uncollectible accounts at year end. The...
Shamrock Merchandising uses an aging schedule to determine its estimated uncollectible accounts at year end. The percentage estimates of bad debts are as follows: SHAMROCK MERCHANDISING Aged Schedule of Accounts Receivable No. of Days Outstanding Amount Estimated % Uncollectible 0–30 days $61,000 0.40% 31–60 days 26,300 5.75% 61–90 days 11,600 19.00% Over 90 days 4,800 48.00% $103,700 The Allowance for Doubtful Accounts has an unadjusted $1,730 credit balance and the company uses the aging schedule to determine estimated uncollectible accounts....
At the end of the current year, Accounts Receivable has a balance of $405,000; Allowance for...
At the end of the current year, Accounts Receivable has a balance of $405,000; Allowance for Doubtful Accounts has a debit balance of $3,500; and sales for the year total $1,820,000. Using the aging method, the balance of Allowance for Doubtful Accounts is estimated as $18,200. a. Determine the amount of the adjusting entry for uncollectible accounts. $ b. Determine the adjusted balances of Accounts Receivable, Allowance for Doubtful Accounts, and Bad Debt Expense. Accounts Receivable $ Allowance for Doubtful...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT