Hiroole Corporation prepares an aging schedule for its accounts receivable at the end of each month and records credit losses monthly. The following selected information is from Hiroole's partial aging schedule at the end of August: Number of Days Outstanding 0-30 days 31-60 days 61-90 days. Over 90 days Total Accounts Receivable $264,000 82,000 44,000 19,000 $409,000 Estimated Percentage Uncollectible 1% 2% 9% 14% The unadjusted balance in Allowance for Expected Credit Losses is a debit of $4,300.

Hiroole Corporation prepares an aging schedule for its accounts receivable at the end of each month and records credit losses monthly. The following selected information is from Hiroole's partial aging schedule at the end of August: Number of Days Outstanding 0-30 days 31-60 days 61-90 days. Over 90 days Total Accounts Receivable $264,000 82,000 44,000 19,000 $409,000 Estimated Percentage Uncollectible 1% 2% 9% 14% The unadjusted balance in Allowance for Expected Credit Losses is a debit of $4,300.

Financial Accounting: The Impact on Decision Makers

10th Edition

ISBN:9781305654174

Author:Gary A. Porter, Curtis L. Norton

Publisher:Gary A. Porter, Curtis L. Norton

Chapter7: Receivables And Investments

Section: Chapter Questions

Problem 7.4E

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Casebolt Company wrote off the following accounts receivable as uncollectible for the first year of its operations ending December 31: a. Journalize the write-offs under the direct write-off method. b. Journalize the write-offs under the allowance method. Also, journalize the adjusting entry for uncollectible accounts. The company recorded 5,250,000 of credit sales during the year. Based on past history and industry averages, % of credit sales are expected to be uncollectible. c. How much higher (lower) would Casebolt Companys net income have been under the direct write-off method than under the allowance method?
Fitbands estimated sales are: What are the balances in accounts receivable for January, February, and March if 65% of sales is collected in the month of sale, 25% is collected the month after the sale, and 10% is second month after the sale?
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A summary of Milan Fashion's December 31, 2021, accounts receivable aging schedule is presented below along with the estimated percent uncollectible for each age group: Age Group Amount % 0-60 days $40,000 0.5 61-90 days 15,000 1.5 91-120 days 2,000 15.0 Over 120 days 800 80.0 The allowance for uncollectible accounts had a credit balance of $1,600 at January 1, 2021. During the year bad debts of $1,150 were written off. Also, $150 previously written off were paid by a customer. Required: Prepare all 2021 journal entries with respect to bad debts and the allowance for uncollectible accounts. Show computations. Prepare a T account for the allowance for uncollectible accounts from 1/1 to 12/31/21.
During the year, New York Communications estimates Uncollectible-account expense at 1% of credit sales. At year-end (December 31), the company ages its receivables and adjusts the balance in Allowance for Uncollectible Accounts to correspond to the following aging schedule. Age of Accounts Accounts Rececivable 1-30 Days 31-60 Days 61-90 Days Over 90 Days $49,000 $238,000 Estimated percent uncollectible $144,000 0.2% $17,000 $28,000 2% 15% 35% During the last quarter of 2019, the company completed the following selected transactions: Nov 30 Wrote off as uncollectible the $1,300 account receivable from Clupper Carpets and the $500 account receivable from Medina Antiques. Dec 31 Adjusted the Allowance for Uncollectible Accounts and recorded uncollectible-account expense at year-end, based on the aging of receivables. Record the transactions for the last quarter of 2019 in the joumal. Explanations are not required. Prepare a T-account for Allowance for Uncollectible Accounts with the…
Seaforth International wrote off the following accounts receivable as uncollectible for the year ending December 31: Customer Amount Kim Abel $24,300 Lee Drake 30,600 Jenny Green 29,900 Mike Lamb 17,900 Total $102,700 The company prepared the following aging schedule for its accounts receivable on December 31: Aging Class (Number of Days Past Due) Receivables Balance on December 31 Estimated Percent of Uncollectible Accounts 0–30 days $730,000 1% 31–60 days 290,000 2 61–90 days 114,000 15 91–120 days 70,000 30 More than 120 days 92,000 60 Total receivables $1,296,000 A. Journalize the write-offs under the direct write-off method. If no entry is required, simply skip to the next transaction. Refer to the Chart of Accounts for exact wording of account titles. B. Journalize the write-offs and the year-end adjusting entry under the allowance method, assuming that the allowance account had a beginning balance of $88,300 and the company uses…
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Domino Company uses the aging of accounts receivable method to estimate uncollectible accounts expense. Domino began Year 2 with balances in Accounts Receivable and Allowance for Doubtful Accounts of $46,310 and $3,650, respectively. During the year, the company wrote off $2,740 in uncollectible accounts. In preparation for the company's Year 2 estimate, Domino prepared the following aging schedule: Number of days past due Receivables amount % Likely to be uncollectible Current $77,000 1% 0-30 28,400 5% 31-60 7,460 10% 61-90 3,920 25% Over 90 3,600 50% Total $120,380 What will Domino record as Uncollectible Accounts Expense for Year 2?