Question

P.4 (LO 2) Writing Ho Publishers, uses the allowance method to estimate uncollectible accounts receivable. The company produced the following aging of the accounts receivable at year-end (¥ in thousands). Worksheet Home Insert Page Layout Formulas Data Review View fx P18 A B C D E F G 1 2 Total Number of Days Outstanding 3 0-30 31-60 61-90 91-120 Over 120 4 Accounts receivable 200,000 77,000 46,000 39,000 23,000 15,000 5 % uncollectible 1% 4% 5% 8% 20% 6 Estimated bad debts 7 Instructions a. Calculate the total estimated bad debts based on the above information. b. Prepare the year-end adjusting journal entry to record the bad debts using the aged uncollectible accounts receivable determined in (a). Assume the current balance in Allowance for Doubtful Accounts is a ¥8,000 debit. c. Of the above accounts, ¥5,000 is determined to be specifically uncollectible. Prepare the journal entry to write off the uncollectible account. d. The company collects ¥5,000 subsequently on a specific account that had previously been determined to be uncollectible in (c). Prepare the journal entry(ies) necessary to restore the account and record the cash collection. e. Comment on how your answers to (a)-(d) would change if Ho used 4% of total accounts receivable rather than aging the accounts receivable. What are the advantages to the company of aging the accounts receivable rather than applying a percentage to total accounts receivable? Journalize transactions related to bad debts. a. Tot. est. bad debts ¥9,400 

          P.4 (LO 2) Writing Ho Publishers, uses the allowance method to estimate uncollectible accounts receivable. The company produced the following aging of the accounts receivable at year-end (¥ in thousands).
Worksheet
Home
Insert
Page Layout
Formulas
Data
Review
View
fx
P18
A
B
C
D
E
F
G
1
2
Total
Number of Days Outstanding
3
0-30
31-60
61-90
91-120
Over 120
4
Accounts receivable
200,000
77,000
46,000
39,000
23,000
15,000
5
% uncollectible
1%
4%
5%
8%
20%
6
Estimated bad debts
7
Instructions
a. Calculate the total estimated bad debts based on the above information.
b. Prepare the year-end adjusting journal entry to record the bad debts using the aged uncollectible accounts receivable determined in (a). Assume the current balance in Allowance for Doubtful Accounts is a ¥8,000 debit.
c. Of the above accounts, ¥5,000 is determined to be specifically uncollectible. Prepare the journal entry to write off the uncollectible account.
d. The company collects ¥5,000 subsequently on a specific account that had previously been determined to be uncollectible in (c). Prepare the journal entry(ies) necessary to restore the account and record the cash collection.
e. Comment on how your answers to (a)-(d) would change if Ho used 4% of total accounts receivable rather than aging the accounts receivable. What are the advantages to the company of aging the accounts receivable rather than applying a percentage to total accounts receivable?
Journalize transactions related to bad debts.
a. Tot. est. bad debts ¥9,400
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P.4 (LO 2) Writing Ho Publishers, uses the allowance method to estimate uncollectible accounts receivable. The company produced the following aging of the accounts receivable at year-end (¥ in thousands). Worksheet Home Insert Page Layout Formulas Data Review View fx P18 A B C D E F G 1 2 Total Number of Days Outstanding 3 0-30 31-60 61-90 91-120 Over 120 4 Accounts receivable 200,000 77,000 46,000 39,000 23,000 15,000 5 % uncollectible 1% 4% 5% 8% 20% 6 Estimated bad debts 7 Instructions a. Calculate the total estimated bad debts based on the above information. b. Prepare the year-end adjusting journal entry to record the bad debts using the aged uncollectible accounts receivable determined in (a). Assume the current balance in Allowance for Doubtful Accounts is a ¥8,000 debit. c. Of the above accounts, ¥5,000 is determined to be specifically uncollectible. Prepare the journal entry to write off the uncollectible account. d. The company collects ¥5,000 subsequently on a specific account that had previously been determined to be uncollectible in (c). Prepare the journal entry(ies) necessary to restore the account and record the cash collection. e. Comment on how your answers to (a)-(d) would change if Ho used 4% of total accounts receivable rather than aging the accounts receivable. What are the advantages to the company of aging the accounts receivable rather than applying a percentage to total accounts receivable? Journalize transactions related to bad debts. a. Tot. est. bad debts ¥9,400

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Horngren’s Cost Accounting
Horngren’s Cost Accounting
Srikant M. Datar, Madhav V. Rajan 16th Edition
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Receivable. The company produced the following aging of the accounts receivable at year-end (¥ in thousands). P8.4 (LO 2) Writing Ho Publishers uses the allowance method to estimate uncollectible accounts re- 82 123 P18 G Home A Insert Page Layout fix Formulas Data Total 4 Accounts receivable 200,000 5% uncollectible 6 Estimated bad debts Worksheet Review B C D E cuir Gibs 18 l Number of Days Outstanding settlement 91-120 Over 120 23,000 8% 0-30 77,000 1% View nos A bark singing W 31-60 46,000 4% 61-90 39,000 5% 15,000 20% 2205 Instructions Vipost ston 38 000 £19 an Tol Son OILA 1. Calculate the total estimated bad debts based on the above information. b. Prepare the year-end adjusting journal entry to record the bad debts using the aged uncollectible accounts receivable determined in (a). Assume the current balance in Allowance for Doubtful Accounts is a ¥8,000 debit. fol 2000.053S amon c. Of the above accounts, ¥5,000 is determined to be specifically uncollectible. Prepare the journal entry to write off the uncollectible account. d. The company collects ¥5,000 subsequently on a specific account that had previously been determined to be uncollectible in (c). Prepare the journal entry(ies) necessary to restore the account and record the cash collection. Ins e. Comment on how your answers to (a)-(d) would change if Ho used 4% of total accounts receivable rather than aging the accounts receivable. What are the advantages to the company of aging the accounts receivable rather than applying a percentage to total accounts receivable? ser ban yang Journalize transactions related to bad debts. 00842TM In RSA a. Tot. est. bad debts ¥9,400 Journalize transactions related to bad debts. Worksheet Page Layout "Toeun P18 B Number of Days Outstanding 31-60 61-90 91-120 Over 120 46,000 39,000 23,000 15,000 4% 5% 8% 20% Total 0-30 77,000 1% %uncollectible Estimated bad debts Instructions 0113 a. Tot. est. bad debts ¥9,400 Accounts is a ¥8,000 debit. entry to write off the uncollectible account. record the cash collection. accounts receivable rather than applying a percentage to total accounts receivable?
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from-its-first-day-of-operations-to-december-31-2020-campbell-corporation-provided-for-uncollectible-accounts-receivable-under-the-allowance-method-1-entries-for-bad-debt-expense-were-made-m-49148

From its first day of operations to December 31, 2020, Campbell Corporation provided for uncollectible accounts receivable under the allowance method: 1. Entries for bad debt expense were made monthly based on 2.5% of credit sales. 2. Bad debts that were written off were charged to the Allowance for Doubtful Accounts. 3. Recoveries of bad debts previously written off were credited to the allowance account. 4. No year-end adjustments were made to the allowance account. The balance in Allowance for Doubtful Accounts was $184,000 at January 1, 2021. During 2021, credit sales totaled $9.4 million, interim entries for bad debt expense were based on 2.5% of credit sales, $95,000 of bad debts were written off, and recoveries of accounts previously written off amounted to $15,000. Campbell upgraded its computer facility in November 2021, and an aging of accounts receivable was prepared for the first time as at December 31, 2021. Campbell's usual credit terms were net 30 days and remain unchanged. A summary of the aging analysis follows: Classification by Month of Sale Balance in Each Category Estimated % Uncollectible November–December 2021 $1,080,000 8.0% July–October 2021 650,000 12.5% January–June 2021 420,000 20.0% Before January 1, 2021 150,000 60.0% $2,300,000 Based on a review of how collectible the accounts really are in the "Before January 1, 2021" aging category, additional receivables totaling $69,000 were written off as at December 31, 2021. The 60% uncollectible estimate therefore only applies to the remaining $81,000 in the category. Finally, beginning with the year ended December 31, 2021, Campbell adopted a new accounting method for estimating the allowance for doubtful accounts: it now uses the amount in the year-end aging analysis of accounts receivable. Instructions a. Prepare a schedule that analyzes the changes in Allowance for Doubtful Accounts for the year ended December 31, 2021. Show supporting calculations in good form. (Hint - prepare a T-account for Allowance for DA from Jan 1 and include as an entry the 2.5% of credit sales, write-offs, and reversals.) b. Prepare the journal entry for the year-end adjustment to the Allowance for Doubtful Accounts balance as at December 31, 2021, from the Income Statement Method over to the Balance Sheet Method. (Hint: In calculating the allowance amount at December 31, 2021, subtract the $69,000 write-off of receivables.) (15 marks)

Sri K.
from-its-first-day-of-operations-to-december-31-2020-campbell-corporation-provided-for-uncollectible-accounts-receivable-under-the-allowance-method-1-entries-for-bad-debt-expense-were-made-m-49148

From its first day of operations to December 31, 2020, Campbell Corporation provided for uncollectible accounts receivable under the allowance method: 1. Entries for bad debt expense were made monthly based on 2.5% of credit sales. 2. Bad debts that were written off were charged to the Allowance for Doubtful Accounts. 3. Recoveries of bad debts previously written off were credited to the allowance account. 4. No year-end adjustments were made to the allowance account. The balance in Allowance for Doubtful Accounts was $184,000 at January 1, 2021. During 2021, credit sales totaled $9.4 million, interim entries for bad debt expense were based on 2.5% of credit sales, $95,000 of bad debts were written off, and recoveries of accounts previously written off amounted to $15,000. Campbell upgraded its computer facility in November 2021, and an aging of accounts receivable was prepared for the first time as at December 31, 2021. Campbell's usual credit terms were net 30 days and remain unchanged. A summary of the aging analysis follows: Classification by Month of Sale Balance in Each Category Estimated % Uncollectible November–December 2021 $1,080,000 8.0% July–October 2021 650,000 12.5% January–June 2021 420,000 20.0% Before January 1, 2021 150,000 60.0% $2,300,000 Based on a review of how collectible the accounts really are in the "Before January 1, 2021" aging category, additional receivables totaling $69,000 were written off as at December 31, 2021. The 60% uncollectible estimate therefore only applies to the remaining $81,000 in the category. Finally, beginning with the year ended December 31, 2021, Campbell adopted a new accounting method for estimating the allowance for doubtful accounts: it now uses the amount in the year-end aging analysis of accounts receivable. Instructions a. Prepare a schedule that analyzes the changes in Allowance for Doubtful Accounts for the year ended December 31, 2021. Show supporting calculations in good form. (Hint - prepare a T-account for Allowance for DA from Jan 1 and include as an entry the 2.5% of credit sales, write-offs, and reversals.) b. Prepare the journal entry for the year-end adjustment to the Allowance for Doubtful Accounts balance as at December 31, 2021, from the Income Statement Method over to the Balance Sheet Method. (Hint: In calculating the allowance amount at December 31, 2021, subtract the $69,000 write-off of receivables.) (15 marks)

Sri K.
the-comparative-balance-sheets-for-2024-and-2023-and-the-statement-of-income-for-2024-are-given-below-for-dux-company-additional-information-from-duxs-accounting-records-is-provided-also-dux-company-c

The comparative balance sheets for 2024 and 2023 and the statement of income for 2024 are given below for Dux Company. Additional information from Dux's accounting records is provided also. DUX COMPANY Comparative Balance Sheets December 31, 2024 and 2023 ($ in thousands) 2024 2023 Assets Cash $ 60 $ 23 Accounts receivable 39 54 Less: Allowance for uncollectible accounts (5) (4) Dividends receivable 6 5 Inventory 55 50 Long-term investment 19 16 Land 75 55 Buildings and equipment 266 280 Less: Accumulated depreciation (62) (80) $ 453 $ 399 Liabilities Accounts payable $ 31 $ 33 Salaries payable 1 6 Interest payable 8 5 Income tax payable 7 8 Notes payable 20 0 Bonds payable 110 85 Less: Discount on bonds (3) (4) Shareholders' Equity Common stock 210 200 Paid-in capital—excess of par 24 20 Retained earnings 52 46 Less: Treasury stock (7) 0 $ 453 $ 399 DUX COMPANY Income Statement For the Year Ended December 31, 2024 ($ in thousands) Revenues Sales revenue $ 230 Dividend revenue 6 $ 236 Expenses Cost of goods sold 135 Salaries expense 31 Depreciation expense 6 Bad debt expense 1 Interest expense 8 Loss on sale of building 5 Income tax expense 14 200 Net income $ 36 Additional information from the accounting records: A building that originally cost $32,000, and which was three-fourths depreciated, was sold for $3,000. The common stock of Byrd Corporation was purchased for $3,000 as a long-term investment. Property was acquired by issuing a 12%, seven-year, $20,000 note payable to the seller. New equipment was purchased for $18,000 cash. On January 1, 2024, bonds were sold at their $25,000 face value. On January 19, Dux issued a 5% stock dividend (1,000 shares). The market price of the $10 par value common stock was $14 per share at that time. Cash dividends of $16,000 were paid to shareholders. On November 12, 500 shares of common stock were repurchased as treasury stock at a cost of $7,000. Required: Prepare the statement of cash flows of Dux Company for the year ended December 31, 2024. Present cash flows from operating activities by the direct method. Note: Do not round your intermediate calculations. Enter your answers in thousands (i.e., 10,000 should be entered as 10). Amounts to be deducted should be indicated with a minus sign.

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Transcript

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00:01 Hello everyone so here the answer will be we will present you present this in a chart so this is period sales back dip estimate percentage age of uncollectibles and this is amount so before jan 1 sales is 1500 3 .750 60 percent 900 and jan 2 june it is 4200 0 0…
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