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Andru [333]
3 years ago
6

Daley Company estimates uncollectible accounts using the allowance method at December 31. It prepared the following aging of rec

eivables analysis.
Days Past Due
Total 0 1 to 30 31 to 60 61 to 90 Over 90
Accounts- $650,000 $412,000 $106,000 $52,000 $34,000 $46,000
receivable
Percent- 2% 3% 6% 8% 11%
uncollectible

a. Estimate the balance of the Allowance for Doubtful Accounts assuming the company uses 5% of total accounts receivable to estimate uncollectibles, instead of the aging of receivables method.
b. Prepare the adjusting entry to record Bad Debts Expense using the estimate from part a. Assume the unadjusted balance in the Allowance for Doubtful Accounts is a $13,400 credit.
c. Prepare the adjusting entry to record bad debts expense using the estimate from part a. Assume the unadjusted balance in the Allowance for Doubtful Accounts is a $2,400 debit.
Business
1 answer:
Gre4nikov [31]3 years ago
4 0

Answer:

a. 5% of $ 650,000=     $ 32,500

b. Required Adjustment  = $ 19,100

c. Required Adjustment  = $ 34,900

Explanation:

             Days Past Due

         Total           0                1 to 30          31 to 60      61 to 90         Over 90

Accounts- $650,000 $412,000 $106,000 $52,000 $34,000 $46,000

receivable

             

Percent-                          2%          3%             6%                8%               11%

uncollectible    22,320    8,240      3180         3120          2720            5060  

a. 5% of $ 650,000=     $ 32,500

B . Unadjusted Balance = $ 13,400 Credit

    Estimated Balance= $ 32,500

Required Adjustment  = $ 19,100

C. Unadjusted Balance = $ 2,400 Debit

        Estimated Balance= $ 32,500

Required Adjustment  = $ 34,900

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Answer:

It will take 13 years and 66 days

Explanation:

Giving the following information:

Your savings account earns 1.72% interest.

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Final value= $3,756

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n= ln(FV/PV) / ln(1+i)

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4 0
3 years ago
Will a sole trader ownership stop a business progress?​
SOVA2 [1]

Answer:

True

Explanation:

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8 0
3 years ago
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Answer:

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Explanation:

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Hence

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4 0
3 years ago
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Answer:

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It can be seen that marginal product decreased from 60 to 40 when the 5th worker was added. This illustrates diminishing marginal returns.

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6 0
2 years ago
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Norma-Jean [14]
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4 0
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