An aging analysis of Hake Company?s accounts receivable at November 30, 2020 and 2021, showed the following:
Question:
An aging analysis of Hake Company?s accounts receivable at November 30, 2020 and 2021, showed the following:
Additional information:
1. At November 30, 2020, the unadjusted balance in Allowance for Doubtful Accounts was a debit of $3,400.
2. In 2021, $22,300 of accounts was written off as uncollectible and $2,500 of accounts previously written off was collected.
Instructions
a. Prepare an aging schedule to calculate the estimated uncollectible accounts at November 30, 2020, and November 30, 2021.
b. Calculate the carrying amount of Hake?s accounts receivable at November 30, 2020, and November 30, 2021.
c. Record the following:
1. The adjusting entry on November 30, 2020
2. The write off of uncollectible accounts in 2021
3. The collection in 2021 of accounts previously written off
4. The adjusting entry on November 30, 2021
What are the implications of the changes in the age of accounts receivable from 2020 to 2021?
Accounts ReceivableAccounts 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...
Step by Step Answer:
a 2020 Estimated of Days Outstanding Amount Uncollectible 030 days outstanding 220000 25 5500 3160 days outstanding 105000 6 6300 6190 days outstandin...View the full answer
Accounting Principles Volume 1
ISBN: 978-1119502425
8th Canadian Edition
Authors: Jerry J. Weygandt, Donald E. Kieso, Paul D. Kimmel, Barbara Trenholm, Valerie Warren, Lori Novak
