Determining estimated uncollectible-adjusting entry

Assignment Help Auditing

Reference no: EM1354992

Leland Company has accounts receivable of $98,100 at March 31. An analysis of the accounts shows the following.

Month of Sale Balance, March 31
March $ 65,000
February 17,600
January 8,500
Prior to January 7,000
$ 98,100

Credit terms are 2/10, n/30. At March 31, Allowance for Doubtful Accounts has a credit balance of $1,200 prior to adjustment. The company uses the percentage of receivables basis for estimating uncollectible accounts. The company's estimate of bad debts is as follows.

Estimated Percentage Age of Accounts Uncollectible
1-30 days 2.0%
30-60 days 5.0%
60-90 days 30.0%
Over 90 days 50.0%

(a) Determine the total estimated uncollectibles.

(b) Prepare the adjusting entry at March 31 to record bad debts expense.

Reference no: EM1354992

Questions Cloud

Prepare journal entries to record transactions : Make journal entries to record the following transactions relating to long-term bonds of XYZ, corporation and Show all calculations.

Determine the energy released in the explosion : An aluminum cup of mass 200 g contains 800 g of water in thermal equlibrium at 80.0c. the combination of cup and water is cooled unformly so that temperature decreases by 1.50c per minute. at what rate is energy being removed by heat.

Explain the organizational and societal functions of pr : Select an organization and identify an issue within that organization that would have both organizational and societal implications and explain the organizational and societal functions of PR.

Administering the bsi : What are the diversity considerations related to administering the BSI for one who is Hispanic and complains of often being angry and lacking energy and how could the professional address this issue?

Determining estimated uncollectible-adjusting entry : Determine the total estimated uncollectibles. Prepare the adjusting entry at March 31 to record bad debts expense.

Show your work for three separate calculations : Use the capital-asset pricing model to predict the returns next year of the following stocks, if you expect the return to holding stocks to be 12 percent on average.

Explain personnel implication setting up wan on global basis : Explain what the personnel implications are when setting up a WAN on a global basis. What are some of the barriers involved with global teams?

Important information about innovative organization : Important information about innovative organization - Organizational Analysis: Identify an organization you think is particularly creative.

Find amount of each of monthly installments : Suppose you have just taken out a 30 year mortgage on your new home for $120,000. This mortgage is to be repaid in 360 equal monthly installments., If the stated (nominal) annual interest rate is 14.75%,

User Account

All Pages