Carmack company has credit sales of 26 million for year

Assignment Help Accounting Basics

Reference no: EM13604274

Carmack Company has credit sales of $2.6 million for year 2011. On December 31, 2011, the company's Allowance for Doubtful Accounts has an unadjusted credit balance of $13,400. Carmack prepares a schedule of its December 31, 2011, accounts receivable by age. On the basis of past experience, it estimates the percent of receivables in each age category that will become uncollectible. This information is summarized here.

December 31, 2011
Accounts Receivable Age of
Expected Percent Uncollectible
$ 730,000 Not yet due 1.25 %
354,000 1 to 30 days past due 2.00
76,000 31 to 60 days past due 6.50
48,000 61 to 90 days past due 32.75
12,000 Over 90 days past due 68.00

Required:
1.Estimate the required balance of the Allowance for Doubtful Accounts at December 31, 2011, using the aging of accounts receivable method. (Omit the "tiny_mce_markerquot; sign in your response.)

Required balance ?

2. Prepare the adjusting entry to record bad debts expense at December 31, 2011. (Omit the "tiny_mce_markerquot; sign in your response.)

Bad Debts Expense ?
Allowance for Doubtful Accounts ?

Reference no: EM13604274

Questions Cloud

Restorative justice due in 7 hours 3 pages the attachment : due in 7 hours 3 pages the attachment will explain what i exactly want don3939t make it look professional.

A local municipality is planning to convert some vacant : a local municipality is planning to convert some vacant acreage into a community park. the land has acted a a funnel

This is a special order problem that also requires that you : this is a special order problem that also requires that you use the high low method to estimate some cost function

The table below shows the cost in dollars for portable : the table below shows the cost in dollars for portable electric generators rated in watts. assume the cost of these

Carmack company has credit sales of 26 million for year : carmack company has credit sales of 2.6 million for year 2011. on december 31 2011 the companys allowance for doubtful

Given the following incremental cash flow for 2 : given the following incremental cash flow for 2 alternatives determine a the rate of return on the incremental cash

Lopez company began operations on january 1 2010 during its : lopez company began operations on january 1 2010. during its first two years the company completed a number of

Scott bestor was hired during january 2011 to manage the : scott bestor was hired during january 2011 to manage the home products division of advanced techno. as part of his

The computer is now turned on and the chip is heated : a computer chip which contains 25 g of copper 55 g plastic cp 0.96 kjkg-k and 55 g of silicon cp 0.70 kjkg-k. the

User Account

All Pages