The following aging schedule is available for Xavier's Xylophones: Days Outstanding Accounts Receivable Amount Not Yet Due $50,000 $15,000 $5,000 $70,000 Up To 180 Days Past Due Over 180 Past Due Total Percentage Uncollectible 3% 11% 25% Using the information provided above, what is Xavier's desired ending balance for the Allowance for Doubtful Accounts account?

The following aging schedule is available for Xavier's Xylophones: Days Outstanding Accounts Receivable Amount Not Yet Due $50,000 $15,000 $5,000 $70,000 Up To 180 Days Past Due Over 180 Past Due Total Percentage Uncollectible 3% 11% 25% Using the information provided above, what is Xavier's desired ending balance for the Allowance for Doubtful Accounts account?

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

Calculate the allowance for doubtful accounts using the accounts receivable aging method using the following information: Beginning Allowance for Doubtful Accounts Balance: $5,000 Probability of Non-Collection 2% 4% 5% 10% 25% Age Group 0-30 days past due 31-60 days past due 61-120 days past duc 121-180 days past due Over 180 days past duc $13,100 $142,500 $5,050 $5,000 Balance $100,000 $20,000 $15,000 $2,500 $5,000
Calculate the required Allowance for Doubtful Accounts under the Accounts Receivable Aging Method using the following information: Age Group 0-30 days past due 31-60 days past due 61-120 days past due 121-180 days past due Over 180 days past due 10,000 $2,650 $3,650 5,000 Balance $100,000 $20,000 $10,000 $5,000 $5,000 Probability of Non- collection 1% 2% 5% 10% 25%
E4-26 At December 31, 2020, before any year-end adjustments, the Accounts Receivable balance of Sunset Hills Clinic is $235,000. Allowance for Uncollectible Accounts has a $6,500 credit balance. Sunset Hills prepares the following aging schedule for accounts receivable: Age of Accounts Total Balance 0-30 Days 31-60 Days 61-90 Days Over 90 Days $110,000 $60,000 $50,000 $15,000 $235,000 0.5% 1.0% 6.0% 40% Estimated uncollectible Requirements: 21Page
The following summarizes the aging of accounts receivable for Johnston Supplies, Inc. as of July 31, 2019: Number of Days Unpaid Total Accounts Receivable Historical % Uncollectible Not yet due $126,500 2% 1-30 days past due 89,200 12% 31-60 days past due 53,600 18% Over 60 days past due 31,800 35% Required: Part a. The unadjusted balance of the Allowance for Doubtful Accounts of Johnston Supplies, Inc. is a credit balance in the amount of $28,947 on July 31, 2019. Prepare the required adjusting entry to record Bad Debt Expense for the year. Part b. Johnston Supplies, Inc. writes off $3,081 of uncollectible accounts on August 15, 2019. Prepare the required adjusting entry to record the write-off. Part c. Use a T-account to determine the account balance in the Allowance for Doubtful Accounts on August 15, 2019.
Sequoia, Inc. has given you the following information from its aging of Accounts Receivable. Using this information, determine the amount of the journal entry to record the estimated uncollectible accounts. Current $27,000 2% uncollectible 31 - 60 days 61- 90 days 6,000 5% uncollectible 3,000 15% uncollectible 91 and up 1.800 16% uncollectible The current balance in Allowance for Doubtful Accounts is a $144 debit. O A. $54,000 O B. $1,722 O C. $1,578 O D. $1,434
Al Hajar Co. provides you the following account balances for the year ended on 31 December 2019. Sales Revenue OMR 100,000 Cr. Accounts Receivable OMR 25,000 Dr. Allowance for Doubtful accounts OMR 1000 Cr. Scenario 1 Bad debts are estimated based on the aging schedule given below Aging class Receivable Balance (OMR) Estimate % of uncollectible 0–30 days 15,000 10 31–60 days 5,000 15 61–90 days 3,500 20 Over 90 days 1,500 25 Actual bad debt - OMR 1,100 and amount recovered - OMR 800. Scenario 2 Estimated amount of bad debts - 12% of receivables, Actual bad debt - OMR 1,500 and amount recovered later on - OMR 900. Scenario 3 Estimated amount of bad debts - 3.5% of Sales, Actual bad debt - OMR 1,300 and amount recovered - OMR 1000. Required: For each scenario given above; a)Estimate the uncollectible amounts. b)Pass adjusting entry to record the estimated uncollectible. c)Pass all the journal entries for actual write off and recovery…
The schedule of aging accounts for a Cormpany at the end of the year 2020, appears below Accounts Recebvable $40,000 10,000 5,500 1.800 5Z.300 Estimate % of Bad Detts Current 1:30 days overdue 31-60 days overdue More than 60 days overdue Total 1% 5% 10% 20% The allowance was estimated by using the schedule of ageing accounts. The allowance acoount had a debit balance of $000, before the estimate was made Required: Prepare the adjusting entry to record bad debts expense for 2020. (SHOW YOUR CALCULATIONS) ALTAENAEI0/Mari
Mercy Hospital has the following balances on December 31, 2021, before any adjustment: Accounts Receivable = $70,000; Allowance for Uncollectible Accounts = $1,400 (credit). Mercy estimates uncollectible accounts based on an aging of accounts receivable as shown below. Age Group AmountReceivable Estimated PercentUncollectible Not yet due $50,000 15% 0 –30 days past due 11,000 20% 31– 90 days past due 8,000 45% More than 90 days past due 1,000 85% Total $70,000 Required:1. Estimate the amount of uncollectible receivables.2. Record the adjustment for uncollectible accounts on December 31, 2021.3. Calculate net accounts receivable.
The aging of Torme Designs shown below. Calculate the amount of each periodicity range that is deemed to be uncollectible. The Allowance for Doubtful Accounts carries a credit balance of $1,135.00. Write the adjusting entry for the end of the current year. 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
The following summarizes the aging of accounts receivable for Johnston Supplies, Inc. as of July 31, 2019: Number of Days Unpaid Total Accounts Receivable Historical % Uncollectible Not yet due $ 126,600 3 % 1-30 days past due 89,300 13 % 31-60 days past due 53,700 19 % Over 60 days past due 31,900 36 % Required: The unadjusted balance of the Allowance for Doubtful Accounts of Johnston Supplies, Inc. is a credit balance in the amount of $28,977 on July 31, 2019. Prepare the required adjusting entry to record Bad Debt Expense for the year. Johnston Supplies, Inc. writes off $3,091 of uncollectible accounts on August 15, 2019. Prepare the required adjusting entry to record the write-off. Use a T-account to determine the account balance in the Allowance for Doubtful Accounts on August 15, 2019
The trial balance of Pharoah Paints at December 31, 2020, includes the following: Debits Credits Accounts Receivable $99,000 Allowance for Doubtful Accounts 880 Sales $99,880 Present the journal entries specified below. Each item should be considered independently. A. If Pharoah Paints uses the aging method and estimates that $2,816 of receivables will be uncollectible, prepare the adjusting entry. B. If Pharoah Paints estimates uncollectibles at 2.2% of accounts receivable and the allowance account had a $880 credit balance instead of a $880 debit balance, prepare the appropriate adjusting entry. C. Assume that on February 3, 2021, the specific account of George Samson with a…
Arguson, Apor and Herrera, CPAs prepared the following aging of its accounts receivable as at December 31, 2020:Age Amount Default RateCurrent P3,000,000 1%Past due:Less than 30 days 500,000 3%31 to 90 days 350,000 10%91 to 150 days 200,000 30%Over 150 days 150,000 50%The Company has receivables amounting to P50,000 from Lacson, Parayday and Magnaye, CPAs, which already closed its business on December 31, 2020. The management decided to write off this account.The beginning balance of allowance for doubtful…