Estimate the balance of the allowance for doubtful accounts

Reference no: EM13483826

	total	0	1 to 30	31 to 60	61 to 90	over 90
accs reveivable	570,000	$396,000	90,000	36,000	18,000	30,000
% uncollectible		1%	2%	5%	7%	10%

a)Estimate the balance of the Allowance for Doubtful accounts assuming the company uses 4.5% of total accounts receivable to estimate uncollectibles, instead of the aging receivables method.

b)Prepare the adjusting entry to record Bad Debts Expense using the estimate from part a. Assume the unadjusted balance in the Allowance for Doubtful Accounts is a $12,000 credit

c)Prepare the adjusting entry to record Bad Debts Expense using the estimate from part a. Assume the unadjusted balance in the Allowance for Doubtful Accounts is a $1,000credit.

Reference no: EM13483826

Questions Cloud

Company p purchased an 80 interest in company s on january : company p purchased an 80 interest in company s on january 1 20x3 for 800000. on the purchase date company s

Bohannon corporations common stock has a beta of 110 if : 1.calculating cost of equity. bohannon corporations common stock has a beta of 1.10. if the risk-free rate is 4.5

Shlee corporation issued a 7-year 67300 : shlee corporation issued a 7-year 67300 zero-interest-bearing note to garcia company on january 1 2011 and received

Using the time value of money to compute the present and : using the time value of money to compute the present and future values of single lump sums and annuities. assume you

Estimate the balance of the allowance for doubtful accounts : total01 to 3031 to 6061 to 90over 90accs reveivable57000039600090000360001800030000 uncollectible125710aestimate the

Using the payback and rate of return methods to make : using the payback and rate of return methods to make capital investment decisions. suppose smith valley is deciding

In computing the irr on an expansion at mountain creek : in computing the irr on an expansion at mountain creek resort vernon valley would consider all of the following

Indicate the effect of each variance by selecting f for : whats going on in that lab? asked derek warren chief administrator for cottonwood hospital as he studied the prior

How did dot-com bubble burst affect it what were the it : how did dot-com bubble burst affect it? what were the it practices that contributed to the recovery of business and

User Account

All Pages