Homework 1 Accounting. Thanks

Price: $10 USD

Question description

A company uses the aging of accounts receivable method to estimate its bad debts expense. On December 31 of the current year, an aging analysis of accounts receivable revealed the following:

Accounts Receivables  The Account Age  Estimated Uncollectible

$620,000  Not due yet  1%

270,000  1-30 days overdue  5

 145,000  31-60 days overdue  10

55,000  61-90 days overdue  30

32,000   91-120 days overdue  40

18,000  Over 120 days overdue  60

Total of 1,140,000

Using the information in the chart above, complete the following: Calculate the amount of the Allowance for doubtful accounts that should be reported on the current year-end balance sheet.Calculate the amount of the Bad Debts Expense that should be reported on the current year's income statement, assuming that the balance of the Allowance for Doubtful Accounts on January 1 of the current year was $50,000 and that accounts receivable written off during the current year totaled $55,000.Prepare the adjusting entry to record bad debts expense on December 31 of the current year.Show how Accounts Receivable will appear on the current year-end balance sheet as of December 31.

Important: Be sure your submission also shows how you calculated and reached the final total for each of the above questions.

Tutor Answer

(Top Tutor) Daniel C.
School: Cornell University
Studypool has helped 1,244,100 students
Ask your homework questions. Receive quality answers!

Type your question here (or upload an image)

1831 tutors are online

Brown University

1271 Tutors

California Institute of Technology

2131 Tutors

Carnegie Mellon University

982 Tutors

Columbia University

1256 Tutors

Dartmouth University

2113 Tutors

Emory University

2279 Tutors

Harvard University

599 Tutors

Massachusetts Institute of Technology

2319 Tutors

New York University

1645 Tutors

Notre Dam University

1911 Tutors

Oklahoma University

2122 Tutors

Pennsylvania State University

932 Tutors

Princeton University

1211 Tutors

Stanford University

983 Tutors

University of California

1282 Tutors

Oxford University

123 Tutors

Yale University

2325 Tutors