Q-154Putnam & Putnam, a legal firm, uses the balance sheet approach to estimate uncollectibleaccounts expense. At year-end, an aging of the accounts receivable produced the following fivegroupings:a. Not yet due$250,000b. 1-30 days past due105,000c. 31-60 days past due40,000d. 61-90 days past due7,500e. Over 90 days past due 15,000Total$417,500On the basis of past experience, the company estimated the percentages probably uncollectiblefor the above five age groups to be as follows: Group a, 1 percent; Group b, 3 percent; Group c₁10 percent; Group d, 20 percent; and Group e, 50 percent.The Allowance for Doubtful Accounts before adjustment at December 31 showed a creditbalance of $5,900.Assume that on January 10 of the following year, Putnam & Putnam learned that an accountreceivable that had originated on September 1 in the amount of $4,300 was worthless becauseof the bankruptcy of the client, Safeland Co.Prepare the journal entry required on January 10 to write off this account.

Step 1: Introduction to accounts receivableAccounts receivable refers to the customers who have…

Answered: Q-154 Putnam & Putnam, a legal firm,…

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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Starlight, a Broadway media firm, uses the balance sheet approach to estimate uncollectible accounts expense. At year-end an aging of the accounts receivable produced the following classification: Not yet due.... $500,000 1-30 days past due... 110,000 31-60 days past due.. 50,000 61-90 days past due.. 30,000 Over 90 days past due.. 60,000 Total.. $750,000 On the basis of past experience, the company estimated the percentages probably uncollectible for the above five age groups to be as follows: Group 1, 1%; Group 2, 3%; Group 3, 10%; Group 4, 20%; and Group 5, 50%. The Allowance for Doubtful Accounts before adjustments at December 31 showed a credit balance of $4,700. What is the estimated amount of uncollectible accounts based on the above classification by age groups and the amount of the adjustment needed to bring the Allowance for Doubtful Accounts to the proper amount? A. $49,300 and $44,600 B. $44,600 and $4,700 C. $52,300 and $44,600 D. $49,300 and $54,000
Question : Moonglow, a Broadway Publicity firm, uses the balance sheet approach to estimate uncollectible accounts expense. At year-end an aging of the accounts receivable produced the following classification: Not yet due $400,000 1-30 days past due 150,000 31-60 days past due 60,000 61-90 days past due 20,000 Over 90 days past due 50,000 Total $680,000 On the basis of past experience, the company estimated the percentages probably uncollectible for the above five age groups to be as follows: Group 1, 1%; Group 2, 4%; Group 3, 10%; Group 4, 25%; and Group 5, 40% The Allowance for Doubtful Accounts before adjustments at December 31 showed a credit balance of $6,600. Instructions a. Compute the estimated amount of uncollectible accounts based on the above classification by age groups. b. Prepare the adjusting entry needed to bring the Allowance for Doubtful Accounts to the proper amount. Show T- account calculation. c. Assume that on January 15 of the following year, Moonglow…
1. Orr Company prepared an aging of accounts receivable on December 31, 20XX 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 January 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, 20XX, what amount should be recognized as doubtful accounts expense?
Tantrum Company provided the following information in relation to accounts receivable at year-end: Days outstanding estimated amount %uncollectible www M 1% 1,200,000 900,000 0-60 61-120 2% 1,000,000 3,100,000\ During the current year, the entity wrote off P70,000 in accounts receivable and recovered P20,000 that had been written off in prior years. At the beginning of current year, the allowance for uncollectible accounts was Over 120 6% P60,000. Under the aging method, what amount of uncollectible accounts expense should be reported for the current year?
5. AA Company prepared an aging of its accounts receivable at December 31, 2022 and determined that the net realizable value of the receivables was P350,000. Additional information is available as follows: Allowance for uncollectible accounts at 1/1/22 – credit balance,P34,000 Accounts written off as uncollectible during 2022, P23,000 Accounts receivable at 12/31/22, P375,000 Uncollectible accounts recovered during 2022, P5,000 Total provisions made during 2022, P12,000 Statement 1: The amount of bad debts expense in 2022 is P9,000. Statement 2: The ending balance of the allowance for uncollectible accounts is P25,000. Group of answer choices Only statement 1 is true Both statements are true Only statement 2 is true Both statements are false
6 Mario Company's Accounts Receivable balance atDecember 31 was $300,000 and there was a credit balance of $1,400 in the Alowance for Doubtful Accounts, The year's sales were $1,800,000. Mario estimates credit losses for the year at 1.5% of sales. After the appropriate adjusting entry is made for credit losses, what is the net amount of accounts receivable included in the current assets at year- end? A) $300,000 B) $271,600 C) $325,400 D) $277,400
Renta Public Image, a firm specializing in marketing and publicity services, uses the balance sheet ap- proach to estimate uncollectible accounts expensc. At year-end an aging of the accounts receiv- Aging Accounts able produced the following classification: PROBLEM 7.5 Receivable; Write-offs LO 5 Not yet due 1-30 days past due $333,000 135,000 31-60 days past due 58,500 61-90 days past due 13,500 Over 90 days past due 22,500 Total $562,500 On the basis of past experience, the company estimated the percentages probably uncollectible for the above five age groups to be as follows: Group I, 1%; Group 2, 3%; Group 3, 10%; Group 4, 20%; and Group 5, 50%. The Allowance for Doubtful Accounts before adjustment at December 31 showed a credit bal- ance of $8,100. Instructions & Compute the estimated amount of uncollectible accounts based on the above classification by age groups. 6. Prepare the adjusting entry needed to bring the Allowance for Doubtful Accounts to the proper amount. C. Assume…
11 The following summarizes the aging of accounts receivable for Johnston Supplies, Incorporated as of July 31, 2022 Total Accounts Receivable $ 126,800 89,500 53,900 32,100 Number of Days Unpaid Not yet due 1 to 30 days past due 31 to 60 days past duel Over 60 days past due Required: a. The unadjusted balance of the Allowance for Doubtful Accounts of Johnston Supplies, Incorporated is a credit balance in the amount of $29,037 on July 31, 2022. Prepare the required adjusting entry to record Bad Debt Expense for the year. b. Johnston Supplies, Incorporated writes off $3,111 of uncollectible accounts on August 15, 2022. Prepare the required adjusting en to record the write-off c. Use a T-account to determine the account balance in the Allowance for Doubtful Accounts on August 15, 2022 Complete this question by entering your answers in the tabs below. Historical Uncollectible View transaction list Required A Required B Required C The unadjusted balance of the Allowance for Doubtful…
Analysis of Receivables Method At the end of the current year, Accounts Receivable has a balance of $630,000; Allowance for Doubtful Accounts has a debit balance of $5,500; and sales for the year total $2,840,000. Using the aging method, the balance of Allowance for Doubtful Accounts is estimated as $25,400. a. Determine the amount of the adjusting entry for uncollectible accounts. 22,900 X b. Determine the adjusted balances of Accounts Receivable, Allowance for Doubtful Accounts, and Bad Debt Expense. Accounts Receivable Allowance for Doubtful Accounts Bad Debt Expense c. Determine the net realizable value of accounts receivable. 601,200 X Feedback 630,000 ✓ 28,400 X 22,900 X Check My Work The analysis of receivables method is based on the assumption that the longer an account receivable is outstanding the less likely that it will be collected. The amount of the adjusting entry is the amount that will yield an adjusted balance for Allowance for Doubtful Accounts.
23.K-Pop Company prepared an aging of its accounts receivable at December 31, 2021 and determined that the estimated uncollectibles on that date was P74,300. During 2021, some customers’ accounts were written off. Additional information is available as follows:Allow. for Uncollectible Accts, Dec. 31, 2020 - P63,000Uncollectible accounts expense reported in the statement of comprehensive income - P18,000Accounts Receivable, Dec. 31, 2021 - P607,500Recovery during 2021 of accounts previously written off - P12,000How much were the accounts written off during 2021?
PAGE 467 PE9-4B At the end of the current year, Accounts Receivable has a balance of $3,460,000. Allowance for Doubtful Accounts has a debit balance of $12,500 and sales for the year total $46 300 000. Using the aging method the balance of Allowance for Doubtful Accounts is estimated as $245,000 Determine the net realizable value of Accounts Receivable O 3,215,000 O 3,460,000 O 245,000 O 12,500
Omega Company prepared an aging of accounts receivable on December 31, 2018 and determined that the net realizable value of the accounts receivable was P2,500,000. Alow ance for uncolectible accounts on January 1 Accounts written off as uncollectible Accounts receivable on December 31 Uncollectible accounts recovery 280,000 230,000 2,700,000 50,000 What is the uncollectible accounts expense for the current year?

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