Zuo Software categorizes its accounts receivable into four age groups for purposes of estimating its allowance for uncollectibleaccounts.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.

To solve this problem, we need to perform the following steps:1. Calculate the estimated…

Answered: Zuo Software categorizes its accounts…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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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.
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?
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?
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 >
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.
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.
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
Blue Spruce Corp, has accounts receivable of $93.500 at March 31, 2022. Credit terms are 2/10, n/30. At March 31, 2022, there is a $2,212 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. Age of Accounts Current 1-30 days past due 31-90 days past due Over 90 days past due (a) Balance, March 31 2021 $70,010 2022 (b) $65,300 11,800 9,300 7,100 $93.500 Your answer is correct. List of Accounts The total estimated uncollectibles eTextbook and Media 7,430 Determine the total estimated uncollectibles at March 31,2022. 2,260 Allowance for Doubhd Accounts 1.130 $80,830 Your answer is partially correct. Estimated Percentage Uncollectible 2 % 5 30 50 Prepare the adjusting entry at March 31, 2022, to record bad debt expense. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If…
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 $
CAN SOMEONE HELP ME FIGURE OUT THE TOTAL ESTIMATED UNCOLLECTIBIES AND THE BAD DEBIT EXPENSE ? Skysong Company has accounts receivable of $112,400 at March 31, 2020. Credit terms are 2/10, n/30. At March 31, 2020, there is a $1,500 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 estimate of bad debts is shown below.
3. Suppose you have the following information Accounts Receivable balance 50,000. Estimated uncollectable accounts 4% of accounts receivable. previous allowance for doubtful accounts credit balance 2,500. prepare the necessary adjusting journal entry. *

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