Zuo Software categorizes its accounts receivable into four age groups for purposes of estimating its allowance for uncollectible accounts. Accounts not yet due = $425,000; estimated uncollectible = 15%. Accounts 1–30 days past due = $53,100; estimated uncollectible = 19%. Accounts 31–90 days past due = $42,500; estimated uncollectible = 22% Accounts more than 90 days past due = $31,900; estimated uncollectible = 26%. At 12/31/2021, before recording any adjustments, Zuo has a credit balance of $29,400 in its allowance for uncollectible accounts. Required: 1. Estimate the appropriate 12/31/2021 balance for Zuo’s allowance for uncollectible accounts. 2. What journal entry should Zuo record to adjust its allowance for uncollectible accounts? 3. Calculate Zuo’s 12/31/2021 net accounts receivable balance.

Zuo Software categorizes its accounts receivable into four age groups for purposes of estimating its allowance for uncollectible accounts. Accounts not yet due = $425,000; estimated uncollectible = 15%. Accounts 1–30 days past due = $53,100; estimated uncollectible = 19%. Accounts 31–90 days past due = $42,500; estimated uncollectible = 22% Accounts more than 90 days past due = $31,900; estimated uncollectible = 26%. At 12/31/2021, before recording any adjustments, Zuo has a credit balance of $29,400 in its allowance for uncollectible accounts. Required: 1. Estimate the appropriate 12/31/2021 balance for Zuo’s allowance for uncollectible accounts. 2. What journal entry should Zuo record to adjust its allowance for uncollectible accounts? 3. Calculate Zuo’s 12/31/2021 net accounts receivable balance.

College Accounting, Chapters 1-27

23rd Edition

ISBN:9781337794756

Author:HEINTZ, James A.

Publisher:HEINTZ, James A.

Chapter16: Accounting For Accounts Receivable

Section: Chapter Questions

Problem 1CE

See similar textbooks

Similar questions

Zuo Software categorizes its accounts receivable into four age groups for purposes of estimating its allowance for uncollectible accounts.1. Accounts not yet due = $400,000; estimated uncollectible = 8%.2. Accounts 1–30 days past due = $50,000; estimated uncollectible = 15%.3. Accounts 31–90 days past due = $40,000; estimated uncollectible = 30%4. Accounts more than 90 days past due = $30,000; estimated uncollectible = 50%.At 12/31/2021, before recording any adjustments, Zuo has a credit balance of $22,000 in its allowance for uncollectible accounts. Required:1. Estimate the appropriate 12/31/2021 balance for Zuo’s allowance for uncollectible accounts.2. What journal entry should Zuo record to adjust its allowance for uncollectible accounts?3. Calculate Zuo’s 12/31/2021 net accounts receivable balance.
Zuo Software categorizes its accounts receivable into four age groups for purposes of estimating its allowance for uncollectible accounts. 1. Accounts not yet due = $385,000; estimated uncollectible = 10%. 2. Accounts 1-30 days past due $34,400; estimated uncollectible =9%. 3. Accounts 31-90 days past due $27,500; estimated uncollectible = 12% 4. Accounts more than 90 days past due = $20,600; estimated uncollectible = 16%. At 12/31/2024, before recording any adjustments, Zuo has a credit balance of $21,800 in its allowance for uncollectible accounts. Required: 1. Estimate the appropriate 12/31/2024 balance for Zuo's allowance for uncollectible accounts. 2. What journal entry should Zuo record to adjust its allowance for uncollectible accounts? 3. Calculate Zuo's 12/31/2024 net accounts receivable balance.
es Dhaliwal Digital categorizes its accounts receivable into three age groups for purposes of estimating its allowance for uncollectible accounts. 1. Accounts not yet due = $296,000; estimated uncollectible = 20%. 2. Accounts 1-45 days past due = $41,100; estimated uncollectible = 25%. 3. Accounts more than 45 days past due = $16,400; estimated uncollectible = 30%. Before recording any adjustments, Dhaliwal has a debit balance of $73,800 in its allowance for uncollectible accounts. Required: 1. Estimate the appropriate 12/31/2021 balance for Dhaliwal's allowance for uncollectible accounts. 2. What journal entry should Dhaliwal record to adjust its allowance for uncollectible accounts? Required 1 Required 2 Estimate the appropriate 12/31/2021 balance for Dhaliwal's allowance for uncollectible accounts. Balance in allowance for uncollectible accounts Required 1 Required 2 >
Crell Computers categorizes its accounts receivable into four age groups for purposes of estimating its allowance for uncollectible accounts.1. Accounts not yet due = $60,000; estimated uncollectible = 5%.2. Accounts 1–30 days past due = $15,000; estimated uncollectible = 10%.3. Accounts 31–60 days past due = $10,000; estimated uncollectible = 20%.4. Accounts more than 60 days past due = $5,000; estimated uncollectible = 30%.What should be the balance in Crell’s allowance for uncollectible accounts?
Dhaliwal Digital categorizes its accounts receivable into three age groups for purposes of estimating its allowance for uncollectible accounts.1. Accounts not yet due = $180,000; estimated uncollectible = 10%.2. Accounts 1–45 days past due = $25,000; estimated uncollectible = 20%.3. Accounts more than 45 days past due = $10,000; estimated uncollectible = 30%.Before recording any adjustments, Dhaliwal has a debit balance of $45,000 in its allowance for uncollectible accounts.Required:1. Estimate the appropriate 12/31/2021 balance for Dhaliwal’s allowance for uncollectible accounts.2. What journal entry should Dhaliwal record to adjust its allowance for uncollectible accounts?
Spade Agency separates its accounts receivable into three age groups for purposes of estimating the percentage of uncollectible accounts. 1. Accounts not yet due = $25,000; estimated uncollectible = 4%. 2. Accounts 1–60 days past due = $10,000; estimated uncollectible = 25%. 3. Accounts more than 60 days past due = $5,000; estimated uncollectible = 50%. In addition, the balance of Allowance for Uncollectible Accounts before adjustment is $1,000 (credit). Compute the total estimated uncollectible accounts and record the year-end adjustment.
Lathun Agency separates its accounts receivable into three age groups for purposes of estimating the percentage of uncollectible accounts. In addition, the balance of Allowance for Uncollectible Accounts before adjustment is $10,500 (credit). Accounts not yet due = $44,000; estimated uncollectible = 4%. Accounts 1 to 60 days past due = $29,000; estimated uncollectible = 25%. Accounts more than 60 days past due = $24,000; estimated uncollectible = 50%. Required: 1. Compute the total estimated uncollectible accounts. 2. Record the year-end adjusting entry for estimated uncollectible accounts.
The Allowance for uncollectible accounts currently has a credit balance of $200. Thecompany's management estimates that 2.5% of net credit sales will be uncollectible. Netcredit sales are $115,000. What will be the amount of Uncollectible account expensereported on the income statement?
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
Sprague Company uses the aging method to adjust the allowance for uncollectibleaccounts at the end of the period. At December 31, 2018, the balance of accounts receivable is$250,000 and the allowance for uncollectible accounts has a credit balance of $4,000 (beforeadjustment). An analysis of accounts receivable produced the following age groups:Current ...................................... $150,00060 days past due......................... 90,000Over 60 days past due................ 10,000$250,000Based on past experience, Sprague estimates that the percentage of accounts that will prove tobe uncollectible within the three age groups is 2% of the current balance, 8% of the 60 dayspast due balance, and 18% of the over 60 days past due balance. Based on these facts, theadjusting entry for uncollectible accounts should be made in the amount ofa. $8,000.b. $12,000.c. $17,000.d. $16,000.
Entity G uses the allowance method for uncollectible accounts. Accounts receivable has a balance of $12,000 and the allowance account has a credit balance of $1,300. Entity A writes of an $800 account. What is the net realizable value of accounts receivable after the write off?: a) $11,200 b) none of the above. c) $10,700 d) $9,900
Tamarisk, Inc. has accounts receivable of $96,500 at March 31, 2022. Credit terms are 2/10, n/30. At March 31, 2022, there is a $2,244 credit balance in Allowance for Doubtful Accounts prior to adjustment. The company uses the percentage-of-receivables basis for estimating uncollectible accounts. The company's estimates of uncollectibles are as shown below. Balance, March 31 Estimated Percentage Age of Accounts 2022 2021 Uncollectible Current $66,000 $79,900 2 % 1-30 days past due 13,000 7,930 5 31-90 days past due 10,600 2,540 30 Over 90 days past due 6,900 1,060 50 $96,500 $91,430 (a) Determine the total estimated uncollectibles at March 31, 2022. The total estimated uncollectibles $