Required information [The following information applies to the questions display
ID: 2554027 • Letter: R
Question
Required information
[The following information applies to the questions displayed below.]
Jarden Company has credit sales of $2,900,000 for year 2017. On December 31, 2017, the company’s Allowance for Doubtful Accounts has an unadjusted credit balance of $17,064. Jarden prepares a schedule of its December 31, 2017, 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.
Accounts Receivable Age of
Accounts Receivable Expected Percent
Uncollectible $ 580,000 Not yet due 0.90 % 232,000 1 to 30 days past due 1.65 46,400 31 to 60 days past due 6.15 23,200 61 to 90 days past due 31.00 4,640 Over 90 days past due 64.00 10 Required information Part 1 of2 [The following information applies to the questions displayed below.] Jarden Company has credit sales of $2,900,000 for year 2017. On December 31, 2017, the company's Allowance for Doubtful Accounts has an unadjusted credit balance of $17,064. Jarden prepares a schedule of its December 31, 2017, 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 points Age of December 31, 2017 Accounts Receivable Expected Percent Uncollectible Accounts Receivable Not yet due 1 to 30 days past due 31 to 60 days past due 61 to 90 days past due Over 90 days past due $ 580,000 0 . 90% 1.65 6.15 31.00 64.00 eBook 232,000 46,400 23,200 4,640 Ask Required 1. Estimate the required balance of the Allowance for Doubtful Accounts at December 31, 2017, using the aging of accounts receivable method Print References Estimate uncollectible counts ercen Receivable uncollectible (###%) Not due: 1 to 30 31 to 60 61 to 90 Over 90: Estimated balance of allowance for uncollectibles
Explanation / Answer
Age of Accounts Receivable Expected Percent Estimated Uncollectible Date General Journal Debit Credit Accounts Receivable Uncollectible 31-Dec Bad debt expenses $ 4,999 Not yet due 580,000 X 0.90 % = $ 5,220 Allowance for doubtful accounts $ 4,999 1 to 30 days past due 232,000 X 1.65 = $ 3,828 31 to 60 days past due 46,400 X 6.15 = $ 2,854 61 to 90 days past due 23,200 X 31.00 = $ 7,192 Over 90 days past due 4,640 X 64.00 = $ 2,970 886,240 $ 22,063
Related Questions
drjack9650@gmail.com
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.