On December 31 of Swift Co's first year, $61,000 of accounts receivable is not yet collected. Swift estimates that $3,100 of its accounts receivable is uncollectible and records the year-end adjusting entry (1) Compute the realizable value of accounts receivable reported on Swift's year-end balance sheet. (2) On January 1 of Swift's second year, it writes off a customer's account for $500. Compute the realizable value of accounts receivable on January 1 after the write-off. Before Write Off After Write Off Realizable value of accounts receivable

On December 31 of Swift Co's first year, $61,000 of accounts receivable is not yet collected. Swift estimates that $3,100 of its accounts receivable is uncollectible and records the year-end adjusting entry (1) Compute the realizable value of accounts receivable reported on Swift's year-end balance sheet. (2) On January 1 of Swift's second year, it writes off a customer's account for $500. Compute the realizable value of accounts receivable on January 1 after the write-off. Before Write Off After Write Off Realizable value of accounts receivable

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter18: The Management Of Accounts Receivable And Inventories

Section: Chapter Questions

Problem 9P

See similar textbooks

Similar questions

The following summarizes the aging of accounts receivable for Orange Incorporated as of July 31, Year 1: Number of Days Unpaid Not yet due 1 to 30 days past due 31 to 60 days past due Over 60 days past due Total Accounts Receivable 11.130 $ 175,982 89,200 53,600 31,800 Historical % Uncollectible 17,424 margin of error +/-3 www. 29 12% 18% The unadjusted balance of the Allowance for Doubtful Accounts of Orange Incorporated is a credit balance in the amount of $17.578 on July 31, Year 1. What is the amount of the adjusting entry to be recorded on July 31 Year 17 35%
:Company provided the following information related to its accounts receivable. Last year 12/31 Estimated that P7,000 of accounts receivable would become uncollectible. Current year 1/05 Wrote-off the P 5,000 balance owed by J Company and the 2,000 balance owed by F Company. 3/18 Reinstate the account of J Company that had been written off since they signify and confirmed the payment. 3/21 Receipt of payment in full. Required: Journalize the transactions
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?
Box company's accounts receivable balance at year-end is $225,650. Allowance for doubtful accounts has $428 debit balance. Box company estimates that 5% of outstanding accounts receivable are uncollectible. Calculate the amount of bad debts expense recorded at December 31? (Round intermediate calculations and the final answer to nearest whole number.) a. $11,711 b. $10,855 c. $11,283 d. $11,261 Answer OA OB Oc OD Submit
K On December 31 of the current year, Jerome Company has an accounts receivable balance of $324,000 before any year - end adjustments. The Allowance for Doubtful Accounts has a $1,500 credit balance. The company prepares the following aging schedule for accounts receivable: 1-30 days $157,000 1% 31-60 days $83,000 2% 61 - 90 days $60,000 5% over 90 days $24,000 22% What is the Allowance for Uncollectible Accounts at December 31 of the current year after adjustments? Total Balance $324,000 Percent uncollectible OA. $10,010 OB. $11,510 OC. $1,500 OD. $13,010 7
A business has the following balances at the beginning of the year: Accounts receivable: 235000 Allowance for doubtful accounts: -15250The following summary transactions occurred during the year.Sales for the year, 100% on credit: 450000Cash collected on accounts receivable for the year: 445200Write-offs of uncollectable accounts receivable : 28200Received a cheque from a customer whose account was previously written off: 2820The overall rate used to estimate the allowance for doubtful accounts at year end: 8%Using the information above, answer the following questions.What is the balance in the accounts receivable account at year end? 1. What is the balance in the accounts receivable account at year end? 2. What is the balance in the allowance for doubtful accounts at year end? 3. What is the balance in the bad debt expense account at year end?
ook ht rint rences In its first year of operations, Cloudbox has credit sales of $230,000. Its year-end balance in accounts receivable is $13,000, and the company estimates that $3,000 of its accounts receivable is uncollectible. a. Prepare the year-end adjusting entry to estimate bad debts expense. b. Prepare the current assets section of Cloudbox's classified balance sheet assuming Inventory is $29,500, Cash is $21,500, and Prepaid Rent is $3,750. Note: The company reports Accounts receivable, net on the balance sheet. Complete this question by entering your answers in the tabs below. Required A Required B Prepare the year-end adjusting entry to estimate bad debts expense. View transaction list Journal entry worksheet 1 Record the year-end adjusting entry to estimate bad debts expense. Note: Enter debits before credits. Date December 31 General Journal Bad debts expense 8 Allowance for doubtful accounts Debit Credit
A business has the following balances at the beginning of the year: Accounts receivable: 265000 Allowance for doubtful accounts: -39750 The following summary transactions occurred during the year. Sales for the year, 100% on credit: 510000 Cash collected on accounts receivable for the year: 503700 Write-offs of uncollectable accounts receivable: 31800 Received a cheque from a customer whose account was previously written off: 43180 Overall rate used to estimate the allowance for doubtful accounts at year end: 10% Using the information above, answer the following questions. Enter the digits only - no dollar signs, commas, or decimal points. IMPORTANT - enter your answer to the second question (the balance in the allowance) as a NEGATIVE number, with a minus sign (-) in front of the digits. What is the balance in the bad debt expense account at year end? What is the balance in the allowance for doubtful accounts at year end? What is the balance in the accounts receivable…
At its fiscal year end, under the aging of a company's accounts receivable, the uncollectible accounts are estimated to be $12,000. The unadjusted balance for the Allowance for Doubtful Accounts is $2,000 credit. Assume the company records adjusting entries only at year end. What is the amount of bad debts expense for the year? A. $12,000 B. $14,000 C. $10,000 D. $2,000
please answer within the format by providing formula the detailed workingPlease provide answer in text (Without image)Please provide answer in text (Without image)Please provide answer in text (Without image) On December 31, a company has outstanding accounts receivable of $69,000, and it estimates that 3% of its receivables will be uncollectible. Prepare the adjusting journal entry at year-end to record bad debts expense if the Allowance for Doubtful Accounts has a: $1,173 credit balance before the adjustment. $345 debit balance before the adjustment.
Required information Skip to question [The following information applies to the questions displayed below.] At December 31, Hawke Company reports the following results for its calendar year. Cash sales $ 640,000 Credit sales $ 1,600,000 In addition, its unadjusted trial balance includes the following items. Accounts receivable $ 480,000 debit Allowance for doubtful accounts $ 5,800 debit 3. An aging analysis estimates that 6% of year-end accounts receivable are uncollectible. Show how Accounts Receivable and the Allowance for Doubtful Accounts appear on its December 31 balance sheet.
Required information [The following information applies to the questions displayed below.] At December 31, Hawke Company reports the following results for its calendar year. Cash sales $ 760,000 Credit sales $ 1,900,000 In addition, its unadjusted trial balance includes the following items. Accounts receivable Allowance for doubtful accounts $570,000 debit $ 6,800 debit 3. An aging analysis estimates that 6% of year-end accounts receivable are uncollectible. Show how Accounts Receivable and the Allowance for Doubtful Accounts appear on its December 31 balance sheet. Current assets: