What is the appropriate balance for allowance

Assignment Help Accounting Basics
Reference no: EM133156502

Question - Tamarisk Corporation operates in an industry that has a high rate of bad debts. Before any year-end adjustments, the balance in Tamarisk's Accounts Receivable account was $591,800 and Allowance for Doubtful Accounts had a credit balance of $43,510. The year-end balance reported in the balance sheet for Allowance for Doubtful Accounts will be based on the aging schedule shown below.


Days Account Outstanding


Amount

Probability of
Collection

Less than 16 days

$313,000

0.96

Between 16 and 30 days

115,300

0.90

Between 31 and 45 days

82,800

0.85

Between 46 and 60 days

43,600

0.81

Between 61 and 75 days

20,700

0.55

Over 75 days (to be written off )

16,400

0.00

Required -

(a) What is the appropriate balance for Allowance for Doubtful Accounts at year-end?

(b) Show how accounts receivable would be presented on the balance sheet.

Reference no: EM133156502

Questions Cloud

How could it have been prevented by management : Ethics are important in business. Provide a recent example of an ethical failing in corporate Australia - How could it have been prevented by management
Bank scenario for systemically important banks : Will the Basel 4 changes reduce the likelihood of a run on the bank scenario for Systemically Important Banks?
Significant force in global economy : Why is the "Pacific Rim" of East Asia becoming an increasingly significant force in the global economy?
Prepare employees for an impending change : What factors cause planned or unplanned change to occur in your or any criminal justice agency?
What is the appropriate balance for allowance : Allowance for Doubtful Accounts had a credit balance of $43,510. What is the appropriate balance for Allowance for Doubtful Accounts at year-end
Draw a physical data flow diagram : AAA Electrical is sells electrical parts to electrical contractors in the southeastern United States. AAA electrical customers mail their payments- attached to
Appropriate research design method : What is the most appropriate research design method and technique to use in reducing transportation costs of a fleet of delivery trucks? Explain
Challenges of implementing the singapore networked : What Are The Challenges Of Implementing The Singapore's Networked Trade Platform?
What is the greenhouse effect : GreatBiz is a professional association group for small to medium size businesses. You have been appointed by GreatBIz to gather and present research information

Reviews

Write a Review

Accounting Basics Questions & Answers

  Which of statements is true about component unit information

Which of the statements is true about component unit information in the financial statements of a reporting entity, such as a city?

  Find simple rate of return for the investment is

Find simple rate of return for the investment (rounded to the nearest tenth of a percent) is: (Round your answer to 1 decimal place.)

  Prepare production cost report for the finishing department

Costs transferred from molding department $720,000. Using the average cost procedure, prepare a production cost report for the finishing department for July

  Discuss date of issue of a note to the date of its maturity

Which of the following consists of the days or months from the date of issue of a note to the date of its maturity

  Compute the discounted payback for this project

Skywards Inc., an airline caterer, is purchasing refrigerated trucks at a total cost of $3.25 million. Compute the discounted payback for this project

  What is the amount of laurie deductible investment

Laurie has a brokerage account at Dean Schwab, Inc. She makes investments on margin through this account. During the current year, she incurs $10,000 in margin interest in the account. Income generated through the brokerage account was.

  What are elliott and page reporting options

Nickerson sued television network defamation citing a loss of $15,000,000 for the value of their franchise rights. What are Elliott and Page reporting options

  Discuss your thoughts on ceo exceptionally high pay

Discuss your thoughts on whether CEOs' exceptionally high pay is economically justified. Explain your rationale.

  In 2013 pete smith receives 330 per day in benefits from a

1 gary and gladys invest in bonds. in the current year they received the following interestcalifornia general revenue

  Prepare the necessary disclosures required by gaap

The following information relating to each segment is available for 2011. Sales of segments B and C included intersegment sales of $20,000 and $100,000, respectively.

  Advise the liquidator about the circumstances and nature

Hannah and Guy are the only directors and members. Advise the liquidator about the circumstances, nature, timeframe and defences,

  Explain the definition of ethics

Question - Explain the definition of ethics and what types of ethical issues are involved in computerized accounting information systems

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!

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