Eve Inc. estimated its allowance for uncollectible accounts using the year-end accounts receivable aging for the end of 2020. The following data is available: Allowance for uncollectible accounts, 1/1/20 Provision for uncollectible accounts during 2020 (2% on credit sales of 3,000,000) Uncollectible accounts written off, 10/30/20 Estimated uncollectible accounts per aging, 12/31/20 What will be the uncollectible accounts expense for 2020 after year end adjustment? O $96,000 O $78,000 O $54,000 O $114,000 $ 92,000 60,000 56,000 114,000

Eve Inc. estimated its allowance for uncollectible accounts using the year-end accounts receivable aging for the end of 2020. The following data is available: Allowance for uncollectible accounts, 1/1/20 Provision for uncollectible accounts during 2020 (2% on credit sales of 3,000,000) Uncollectible accounts written off, 10/30/20 Estimated uncollectible accounts per aging, 12/31/20 What will be the uncollectible accounts expense for 2020 after year end adjustment? O $96,000 O $78,000 O $54,000 O $114,000 $ 92,000 60,000 56,000 114,000

Financial Accounting Intro Concepts Meth/Uses

14th Edition

ISBN:9781285595047

Author:Weil

Publisher:Weil

Chapter8: Revenue Recognition, Receivables, And Advances From Customers

Section: Chapter Questions

Problem 25E

See similar textbooks

Similar questions

Prior to adjustments, Barrett Companys account balances at December 31, 2019, for Accounts Receivable and the related Allowance for Doubtful Accounts were 1,200,000 and 60,000, respectively. An aging of accounts receivable indicated that 106,000 of the December 31, 2019, receivables may be uncollectible. The net realizable value of accounts receivable at December 31, 2019, was: a. 1,034,000 b. 1,094,000 c. 1,140,000 d. 1,154,000
Inferring Accounts Receivable Amounts At the end of 2019, Karras Inc. had a debit balance of 141,120 in its accounts receivable. Additionally, Karras had a credit balance in its allowance for doubtful accounts of 4,350 and 9,420 at the beginning and end of the year, respectively. During the year, Karras made credit sales of 1,530,000, collected receivables in the amount of 1,445,700, and recorded bad debt expense of 83, 750. Required: Next Level Compute the amount of accounts receivable that Karras wrote off during the year and the amount of accounts receivable at the beginning of the year.
Mirror Mart uses the balance sheet aging method to account for uncollectible debt on receivables. The following is the past-due category information for outstanding receivable debt for 2019. To manage earnings more efficiently, Mirror Mart decided to change past-due categories as follows. Complete the following. A. Complete each table by filling in the blanks. B. Determine the difference between total uncollectible. C. Explain how the new total uncollectible amount affects net income and accounts receivable.
Elegant Linens uses the balance sheet aging method to account for uncollectible debt on receivables. The following is the past-due category information for outstanding receivable debt for 2019. To manage earnings more favorably, Elegant Linens considers changing the past-due categories as follows. A. Complete each table by filling in the blanks. B. Determine the difference between total uncollectible. C. Complete the following 2019 comparative income statements for 2019, showing net income changes as a result of the changes to the balance sheet aging method categories. D. Describe the categories change effect on net income and accounts receivable.
For the year ended, December 31, 2020, LAVENDER Company estimated its allowance for uncollectible accounts using the year-end aging of accounts receivable. The following data are available: Allowance for uncollectible accounts, 1/1/20 -₱56,000; Provision for uncollectible accounts during 2020 ( 2% on credit sales of ₱2,000,000) -₱40,000; Uncollectible accounts written off, 11/30/20 -₱46,000; Estimated uncollectible account per aging, 12/31/20 -₱69,000. After the year-end adjustment, the uncollectible accounts expense for 2020 should be?
For the year ended, December 31, 2020 BANANA Company estimated its allowance for uncollectible accountsusing the year-end aging of accounts receivable. The following data are available Allowance for Uncollectible accounts, 1/1/20 -P56,000; Provision for uncollectible accounts during 2020 (2% on credit sales of P2,000,000) -P40,000; Uncollectible accounts written off, 11/30/20 -P46,000; Estimated uncollectible account per aging, 12/31/20 - P69,000. After the year-end adjustment, the uncollectible accounts expense for 2020 should be?
For the year ended, December 31, 2020, GERBERA Company estimated its allowance for uncollectible accounts using the year-end aging of accounts receivable. The following data are available: Allowance for uncollectible accounts, 1/1/20 -₱56,000; Provision for uncollectible accounts during 2020 ( 2% on credit sales of ₱2,000,000) -₱40,000; Uncollectible accounts written off, 11/30/20 -₱46,000; Estimated uncollectible account per aging, 12/31/20 -₱69,000. After the year-end adjustment, the uncollectible accounts expense for 2020 should be?
DVAH Company estimates that 6% of accounts receivable will be uncollectible. The total credit sales for the year 2020 were P1,000,000, accounts receivable as of December 31, 2020 was P200,000 (before any adjustments), and allowance for doubtful accounts is 10,000 before any adjustments. Determine the adjusted balance or the should be balance of the allowance account.
HP Inc. uses the allowance method to estimate uncollectible accounts and has the following information for 2020, prior to any adjusting entries: Net Credit Sales: $110,000 Accounts Receivable: $13,000 Allowance for Uncollectible Accounts: $600 Assume the company uses the aging method and estimates uncollectible accounts to be $4,000. The adjusting entry to estimate uncollectible accounts at year-end debits Uncollectible Account Expense $4,000 and credits Accounts Receivable $4,000. True False
DVAH Company estimates that 6% of accounts receivable will be uncollectible. The total credit sales for the year 2020 were P1,000,000, accounts receivable as of December 31, 2020 was P200,000 (before any adjustments), and allowance for doubtful accounts is 10,000 before any adjustments. Determine the doubtful accounts expense for 2020.
Lyka Co. determined that the net value of its accounts receivable at December 31, 2020,based on an aging of the receivables, was P325,000. Additional information is as follows:Allowance for uncollectible accounts—1/1/20 30,000Uncollectible accounts written off during 2020 18,000Uncollectible accounts recovered during 2020 2,000Accounts receivable at 12/31/20 350,0001. For 2020, what would be Inge’s uncollectible accounts expense? __________ 2. At January 1, 2020, Jamin Co. had a credit balance of P260,000 in its allowance for uncollectible accounts. Based on past experience, 2% of Jamin’s credit sales have been uncollectible. During 2020 Jamin wrote off P325,000 of uncollectible accounts. Credit sales for 2020 were P9,000,000. In its December 31, 2020 balance sheet, what amount should Jamin report as allowance for uncollectible accounts? __________
Taiju Company prepared an aging of accounts receivable on December 31, 2020 and determined that the net realizable value of the accounts receivable was P2,500,000. Additional information is available as follows: Allowance for doubtful accounts on Jan. 1 280,000 Accounts written off as uncollectible 230,000 Accounts receivable on December 31 2,700,000 Uncollectible accounts recovery 50,000 For the year ended December 31, 2020, what amount should be recognized as doubtful accounts expense?