Question

Credit Losses Based on Accounts Receivable At December 31, Schuler Company had a balance of $377,800...

Credit Losses Based on Accounts Receivable At December 31, Schuler Company had a balance of $377,800 in its Accounts Receivable account and a credit balance of $4,200 in the Allowance for Doubtful Accounts account. The accounts receivable T-account consisted of $383,000 in debit balances and $5,200 in credit balances. The company aged its accounts as follows:

Current $306,000
0-60 days past due 46,000
61-180 days past due 20,000
Over 180 days past due 11,000
$383,000


In the past, the company has experienced credit losses as follows: 1% of current balances, 5% of balances 0-60 days past due, 15% of balances 61-180 days past due, and 40% of balances over six months past due. The company bases its allowance for doubtful accounts on an aging analysis of accounts receivable.

Required
a. Prepare the adjusting entry to record the allowance for doubtful accounts for the year.
b. Show how Accounts Receivable (including the credit balances) and the Allowance for Doubtful Accounts would appear on the December 31 balance sheet.

a.

General Journal
Date Description Debit Credit
Dec.31 AnswerBad Debts ExpenseAllowance for Doubtful AccountsAccounts Receivable Answer Answer
AnswerBad Debts ExpenseAllowance for Doubtful AccountsAccounts Receivabl Answer Answer
To record allowance for credit losses.


b.

Current Assets:
AnswerAccounts ReceivableLess: Allowance for Doubtful Accounts Answer
AnswerAccounts ReceivableLess: Allowance for Doubtful Accounts Answer
Answer
Current Liabilities:
Customers' Overpayments Answer
Business   Accounting   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1
Computaiton of Estimated Balance of Allowance- Crdit Losses - Schuler Compan
Current 0-60Days 61-180 Days Over 180 Days TOTAL
Accounts receivables $306,000 $46,000 $20,000 $11,000 $383,000
% uncollectible 1% 5% 15% 40%
Estimated Balance for Allowance for Doubtful Accounts $3,060 $2,300 $3,000 $4,400 $12,760
Estimated Balance for Allowance for Doubtful Accounts would be $12760
Requirement: a - Adjusting Journal Entry-
Accounts title Debit Credit
Bad Debt Expense $7,560
Allowance for Doubtful Accounts
($12760-5200)		 $7,560
Partial Balance sheet
Acount Receivable ( Gross) $383,000.00
Less: Allowance for Doubtful debt $12,760.00
Account Recievable ( Net) $370,240.00
0 0
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
Credit Losses Based on Accounts Receivable At December 31, Schuler Company had a balance of $386,600...
Credit Losses Based on Accounts Receivable At December 31, Schuler Company had a balance of $386,600 in its Accounts Receivable account and a credit balance of $4,200 in the Allowance for Doubtful Accounts account. The accounts receivable T-account consisted of $392,000 in debit balances and $5,400 in credit balances. The company aged its accounts as follows: Current $308,000 0-60 days past due 49,000 61-180 days past due 21,000 Over 180 days past due 14,000 $392,000 In the past, the company...
At December 31, the Azuza Company had a balance of $754,000 in its Accounts Receivable account...
At December 31, the Azuza Company had a balance of $754,000 in its Accounts Receivable account and a credit balance of $9,000 in the Allowance for Doubtful Accounts account. The company aged its accounts as follows: Current $608,000 0–60 days past due 88,000 61–180 days past due 40,000 Over 180 days past due 18,000 $754,000 In the past, the company has experienced credit losses as follows: one percent of current balances, five percent of balances 0–60 days past due, 20...
Credit Losses Based on Accounts Receivable Maxell, Inc., analyzed its accounts receivable balances at December 31,...
Credit Losses Based on Accounts Receivable Maxell, Inc., analyzed its accounts receivable balances at December 31, and arrived at the aged balances listed below, along with the percentage that is estimated to be uncollectible: Age Group Balance Probability of Noncollection 0-30 days past due $101,000 1% 31-60 days past due 19,000 3% 61-120 days past due 21,000 6% 121-180 days past due 8,000 10% Over 180 days past due 3,000 20% $152,000 The company handles credit losses using the allowance...
At December 31, 2019 Barber Company had a balance of $420,000 in accounts receivable and an...
At December 31, 2019 Barber Company had a balance of $420,000 in accounts receivable and an unadjusted credit balance of $3,500 in its allowance for uncollectible accounts. The company then aged its accounts as follows. Current $346,000; 1-60 days past due $48,000; 61-180 days past due $17,000; Over 180 days past due $9,000; Total accounts receivable $420,000. The company has experienced losses as follows: 2% of current balances; 5% of balances 1-60 days past due; 15% of balances 61-180 past...
Kiley Company had a $900 credit balance in Allowance for Doubtful Accounts at December 31, 2005,...
Kiley Company had a $900 credit balance in Allowance for Doubtful Accounts at December 31, 2005, before the current year's provision for uncollectible accounts. An aging of the accounts receivable revealed the following: Estimated Percentage Uncollectible Current Accounts $120,000 1% 1-30 days past due 12,000 3% 31-60 days past due 10,000 6% 61-90 days past due 5,000 12% Over 90 days past due 8,000 30% Total Accounts Receivable $155,000 Instructions Please identify each of your answers with the letter of...
Estimating Bad Debts Expense and Reporting of Receivables At December 31, 2013, Sunil Company had a...
Estimating Bad Debts Expense and Reporting of Receivables At December 31, 2013, Sunil Company had a balance of $600,000 in its accounts receivable and an unused balance of $6,720 in its allowance for uncollectible accounts. The company then aged its accounts as follows: Current $486,400 0-60 days past due 70,400 61-180 days past due 28,800 Over 180 days past due 14,400 Total accounts receivable $600,000 The company has experienced losses as follows: 1% of current balances, 5% of balances 0-60...
Whispering Winds Corp. had a $300 credit balance in Allowance for Doubtful Accounts at December 31,...
Whispering Winds Corp. had a $300 credit balance in Allowance for Doubtful Accounts at December 31, 2022, before the current year's provision for uncollectible accounts. An aging of the accounts receivable revealed the following: Estimated Percentage Uncollectible Current Accounts $100,000 1 % 1–30 days past due 15,000 4 % 31–60 days past due 11,000 6 % 61–90 days past due 7,900 19 % Over 90 days past due 9,900 34 % Total Accounts Receivable $143,800 Prepare the adjusting entry on...
Broadway Limited had an $800 credit balance in Allowance for Doubtful Accounts at December 31, 2018,...
Broadway Limited had an $800 credit balance in Allowance for Doubtful Accounts at December 31, 2018, before the current year's provision for uncollectible accounts. An aging of the accounts receivable revealed the following:                                                                                                          Estimated Percentage                                                                                                                 Uncollectible        Current Accounts.......................................     $150,000                       1%        1-30 days past due.....................................         15,000                       3%        31-60 days past due...................................           8,000                       6%        61-90 days past due...................................           5,000                     12%        Over 90 days past due................................           6,000                     30%        Total...
Estimating Bad Debts Expense and Reporting Receivables At December 31, Barber Company had a balance of...
Estimating Bad Debts Expense and Reporting Receivables At December 31, Barber Company had a balance of $294,000 in its accounts receivable and an unused balance of $1,820 in its allowance for uncollectible accounts. The company then aged its accounts as follows. Current$242,200 1–60 days past due33,600 61–180 days past due11,900 Over 180 days past due6,300 Total accounts receivable$294,000 The company has experienced losses as follows: 1% of current balances, 5% of balances 1–60 days past due, 15% of balances 61–180...
Estimating Bad Debts Expense and Reporting of Receivables At December 31, 2016, Sunil Company had a...
Estimating Bad Debts Expense and Reporting of Receivables At December 31, 2016, Sunil Company had a balance of $375,000 in its accounts receivable and an unused balance of $4,200 in its allowance for uncollectible accounts. The company then aged its accounts as follows: Current $304,000 0–60 days past due 44,000 61–180 days past due 18,000 Over 180 days past due 9,000 Total accounts receivable $375,000 The company has experienced losses as follows: 1% of current balances, 5% of balances 0–60...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT