Reference no: EM13752021
Allowance for Doubtful Accounts
Company Nine uses the allowance method (percentage of accounts receivable) to estimate bad debts. The company had the following activities in its Allowance for Doubtful Accounts during the year 2014:
Balance 1/1/2014 $16,000 (from 2013 balance sheet)
Write offs during 2014 $20,000
Write-off recoveries for 2014 $2,000
At the end of 2014, Company Nine prepared an aging schedule to derive the following information regarding its ending accounts receivable:
Accts Rec % Uncollectible
Less than 30 days old $200,000 2%
30 to 90 days old 50,000 10%
Over 90 days old 30,000 40%
Total 280,000
1. Complete the aging schedule above to calculate the desired ending balance in the Allowance account at December 31, 2014:
2. Prepare the following journal entries for 2014:
a. Write-offs of $20,000:
b. Write-off recoveries of $2,000 (two entries)
3. Using the T-account (on the answer sheet) to analyze the allowance account activity, and to calculate the estimate for the adjusting journal entry.
4. Prepare the adjusting journal entry to record bad debt expense for 2014.
5. What balance would appear as Accounts Receivable (net) on the 2014 balance sheet?
|
Receives sales tax returns and related payments
: Idaho Falls maintains its books and records in a manner that facilitates the preparation of fund financial statements. Prepare all necessary journal entries to record the following events for the year ended December 31, 2014.
|
|
The casey company case studyconstruct
: The Casey Company Case StudyConstruct and interpret a control chart for the packing slip data.Conduct a Pareto analysis of the errors.What information might a separate chart for each error category provide? Conduct a more thorough analysis for each e..
|
|
Creating a hierarchical outline organizes the project tasks
: Creating a hierarchical outline organizes the project tasks list into groups of tasks. Each group of tasks is preceded by a summary task, which describes the tasks within each group.
|
|
Two tools were used by the group in the early analysis
: "Two tools were used by the group in the early analysis of their process. Why was it important for the group to use a histogram when they did? What could have happened if the group had not used it?"
|
|
About the allowance for doubtful accounts
: Company Nine uses the allowance method (percentage of accounts receivable) to estimate bad debts. The company had the following activities in its Allowance for Doubtful Accounts during the year 2014:
|
|
How large must each of the 2 payments be
: You plan to make 3 deposits of $1000 each, one every 6 months, with the first payment being made in 6 months. You will then make no more deposits. if the bank pays 6% nominal interest, compounded semiannually, how much would be in your account after ..
|
|
What is major accounting problems related to interim reports
: Interim reports. A few years ago, a publishing company in the fourth quarter had a net profit figure that exceeded sales for that quarter. Such a situation as this suggests that some difficult accounting issues are involved in interim reporting. What..
|
|
Advertise the fitness activities for students at a college
: Creating a one-page flyer in a Microsoft Word document. The flyer will advertise the fitness activities for students at a college. There are two categories of fitness activities: Fitness Services and Intramural Sports
|
|
Prepare the schedule to reconcile the bank and book balances
: Given the following information for Pace Company, derived from the bank reconciliation information for the month of June: Cash Balance per bank statement at June 30 $7,200. Prepare the schedule to reconcile the bank and book balances to the correct b..
|