User Account

All Pages

Calculate the balance that should be reported in allowance

Assignment Help Accounting Basics
Reference no: EM132013538

Question - Adventure Company uses the aging of accounts receivable method to estimate bad debt expense. The balance of each account receivable is aged on the basis of three categories as follows: (1) 1-30 days old, (2) 30-90 days old, and (3) more than 90 days old. Experience has shown that for each age group, the average loss rate on the amount of the receivable due to uncollectibility is (1) 2%, (2) 13%, and (3) 31%, respectively. At December 31, 2014, the unadjusted balance in the Allowance for Doubtful Accounts was $270 (credit), and the total amounts receivable in each category were: (1) 1-30 days old, $66,000, (2) 30-90 days old, $15,000, and (3) more than 90 days old, $6,000.

Calculate the balance that should be reported in the Allowance for Doubtful Accounts at December 31, 2014.

Prepare the appropriate bad debt expense adjusting entry at December 31, 2014 using a Journal Entry Worksheet.

Reference no: EM132013538

Questions Cloud

What is the adjusted balance in the accumulated depreciation : Shaggy Limited purchased a new van on January 1, 2014. What is the adjusted balance in the Accumulated Depreciation account at the end of 2015
Why are we brand loyal : Why are we brand loyal also, name a product category where brands switch frequently. Why do we exhibit different behavior in these two product categories?
Implementing a drug testing policy : What are key issue that employers consider when implementing a drug testing policy?
What did ford do to improve the evaluation system : Why was Ford's evaluation system, the PMP, the source of contention for Ford employees who felt discriminated against? In moving away from the PMP.
Calculate the balance that should be reported in allowance : Calculate the balance that should be reported in the Allowance for Doubtful Accounts at December 31, 2014
Experiences frequent equipment or process failures : Think of an organization that experiences frequent equipment or process failures. (a photo company or newspaper for example)
Do you believe the payoff of critical thinking is worth : Do you believe the payoff of critical thinking is worth the effort? Why or why not?
How much interest did he save by making the partial? payment : Raul paid $4,750 on the note on the 200th day. How much interest did he save by making the partial? payment?
What conflicts can a manager anticipate this team facing : What conflicts can a manager anticipate this team facing? What strategies might a manager apply to manage his team's potential conflicts?

Reviews

Write a Review

Accounting Basics Questions & Answers

  Prepare the journal entries to record the costs incurred

Ainge Auto sells used cars and trucks. During 2012, it sold 53 cars and trucks for a total of $1,400,000. Ainge provides a 24-month, 30,000-mile warranty on the used cars and trucks sold.

  Sattle inc is contemplating a project that costs 180000

seattle inc. is contemplating a project that costs 180000. expectations are that annual cash revenues will be 70000 and

  The cost of goods sold includes 2575000 of fixed

the cost of goods sold includes 2575000 of fixed manufacturing overhead the operating expenses include 270000 of fixed

  The net exports effect

The "net exports effect" is the impact on a country's total spending caused by an inverse relationship between the price level and the net exports of an economy. Using this principle, discuss how the following economic variables change during an e..

  How much needs to be invested today

How much needs to be invested today if your goal is to be able to withdraw $500 at the end of each year for the next nine years beginning

  What is the opportunity cost

What is the opportunity cost of not taking advantage of the discount associated with purchases made under the following terms: 2/10, n/30

  Evaluate the level of responsibility of the company

Evaluate the level of responsibility of the company in terms of the effectiveness of the response to the security breach. Provide support for your rationale.

  Cash payback period for each proposal

Proposals L and K each cost $500,000, have 6-year lives, and have expected total cash flows of $720,000. Proposal L is expected to provide equal annual net cash flows of $120,000, while the net cash flows for Proposal K are as follows:

  What is the final balance sheet value of inventory

Assuming no other changes to inventory, and using the historical cost method, what is the final balance sheet value of inventory

  Investing and financing activities

Looking forward to next year, if Chester's current cash balance is $19,743 (000) and cash flows from operations next period are unchanged from this period, and Chester takes ONLY the following actions relating to cash flows from investing and fina..

  What amount of the acquisition cost has already been expense

What amount of the acquisition cost has already been expensed? What is the book value (carrying value)? Are any of the assets listed not being depreciated?

  How much is raw materials transferred to production

During 2006, Caltreck purchased $950,000 of raw materials, How much is raw materials transferred to production during 2006 for Caltreck Manufacturing

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd