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s Markup Options . Reviewing Accept Reject Previous Next Track Changes Change Ch

ID: 2558712 • Letter: S

Question

s Markup Options . Reviewing Accept Reject Previous Next Track Changes Change Change Exercise 6-9 The records of Flint Company at the end of the current year shows Accounts Receivable $84,500; Credit Sales $756,230; and Sales Returns and Allowances $37,220. (a) If Flint uses the direct write-off method to account for uncollectible accounts and Flint determines that Matisse's $893 balance is uncollectible, what will Flint record as bad debt expense? Bad debt expense (b) If Allowance for Doubtful Accounts has a balance of $1,107 and Flint concludes bad debts are expected to be 10% of accounts receivable, what will Flint record as bad debt expense? Bad debt expense Exercise 6-10 (Part Level Submission) Sheffield Corp. has accounts receivable of $94,400 at March 31, 2017. At March 31, 2017, there is a $2,115 balance in Allowance for Doubtful Accounts prior to adjustment. The company uses the percentage-of-receivables basis for estimating uncollectible accounts. The company's estimates of bad debts are as shown below. Salance, March 31 Estimated Percentage 2017 2016Uncollectible Age of Accounts Current 1-30 days past due 31-90 days past due Over 90 days past due $64,400 $81,960 13,300 7,240 2,260 1,010 $94,400 $92,470 2% 9,100 32 7,600 47 Determine the total estimated uncollectible. The total estimated uncollectible Click if you would like to Show Work for this question:Open Show Werk

Explanation / Answer

6-9) a) Bad debt expense = 893

b) Bad debt expenses = (84500*10%)-1107 = 7343

6-10) Calculate total estimated uncollectible :

The total estimated uncollectible is $8437

Days Account receivable % uncollectible Uncollectible amount Current 64400 2% 1288 1-30 days 13300 5% 665 31-90 days 9100 32% 2912 Over 90 days 7600 47% 3572 Total 8437