Brown cow dairy uses the aging approach to estimate bad

Assignment Help Accounting Basics

Reference no: EM13604519

Brown Cow Dairy uses the aging approach to estimate Bad Debt Expense. The balance of each account receivable is aged on the basis of three time periods as follows: (1) 1-30 days old, $11,500; (2) 31-90 days old, $5,000; and (3) more than 90 days old, $3,000. Experience has shown that for each age group, the average loss rate on the amount of the receivable due to uncollectibility is (1) 4 percent, (2) 10 percent, and (3) 27 percent, respectively. At December 31, 2010 (end of the current year), the Allowance for Doubtful Accounts balance was $360 (credit) before the end-of-period adjusting entry is made.

Requirement 1:

Prepare a schedule to estimate an appropriate year-end balance for the Allowance for Doubtful Accounts. (Round all final answers to the nearest dollar amount. Omit the "$" sign in your response.)

Aged accounts receivable	Estimated amount uncollectible
1-30 days		$
31-90 days
More than 90 days

Estimated balance in Allowance for Doubtful Accounts		$

Requirement 2:

What amount should be recorded as Bad Debt Expense for the current year? (Omit the "$" sign in your response.)

Amount of bad debt expense

Requirement 3:

If the unadjusted balance in the Allowance for Doubtful Accounts was a $833 debit balance, what would be the amount of Bad Debt Expense in 2010? (Omit the "$" sign in your response.)

Amount of bad debt expense

Reference no: EM13604519

Questions Cloud

At the bottom with a height of 05 m is liquid water on top : a 2.5 m tall steel cylinder has a cross sectional area of 1.5 m2 . at the bottom with a height of 0.5 m is liquid water

Nasa decides to build a house on the moon and to keep time : consider this nasa decides to build a house on the moon and to keep time they send up the grandfather clock from the

Paint company manufactures paint x and paint y and can sell : paint company manufactures paint x and paint y and can sell all it can make of either. based on the following data

The president of the retailer prime products has just : the president of the retailer prime products has just approached the companys bank with a request for a 30000 90- day

Brown cow dairy uses the aging approach to estimate bad : brown cow dairy uses the aging approach to estimate bad debt expense. the balance of each account receivable is aged on

533-cm-long uniformly charged rod is sealed in a container : 53.3-cm-long uniformly charged rod is sealed in a container. the total electric flux leaving the container is

Two infinite nonconducting uniformly charged flat surfaces : two infinite nonconducting uniformly charged flat surfaces are mutually perpendicular. one of the surfaces has a charge

Determine the components of force fr ftheta and fz which : the boy of mass 40 kg is sliding down the spiral slide at a constant speed such that his position measured from the top

Paul is the manager of a motel as a condition of his : paul is the manager of a motel. as a condition of his employment paul is required to live in a room on the premises so

User Account

All Pages