At December 31, 2012, before any year-end adjustments, the Accounts Receivable balance of TM Manufacturing is $130,000.

Question:

At December 31, 2012, before any year-end adjustments, the balance of TM Manufacturing is $130,000. The Allowance for Doubtful Accounts has a $8,000 credit balance. TM Manufacturing prepares the following for

Requirements
1. Based on the aging of Accounts Receivable, is the unadjusted balance of the Allowance account adequate? Too high? Too low?
2. Make the entry required by the aging schedule. Prepare a T-account for the allowance.
3. Show how TM Manufacturing will report Accounts Receivable on its December 31 balancesheet.

Accounts Receivable
Accounts receivables are debts owed to your company, usually from sales on credit. Accounts receivable is business asset, the sum of the money owed to you by customers who haven’t paid.The standard procedure in business-to-business sales is that... Aging Schedule
Aging schedule is an accounting table that shows a company’s account receivables. It is an summarized presentation of accounts receivable into a separate time brackets that the rank received based upon the days due or the days past due. Generally...

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At December 31, 2012, before any year-end adjustments, the Accounts Receivable balance of TM Manufacturing is $130,000.

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Financial accounting

At December 31, 2012, before any year-end adjustments, the Accounts Receivable balance of TM Manufacturing is $130,000.

Question:

Age of Accounts 31-60 Days 61-90 Days Total Balance $130,000 Estimated uncollectible 1-30 Days $50,000 0.5% $40,000 5.0% S30,000 6.0% Over 90 Days $10,000 60.0%

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Req 1 The credit balance at December 31 in Allowance for Doubtful Accounts should ...View the full answer

Financial accounting

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