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0 P9-7. Aging ofAccounts Receivable. Writt-off's Journal Entries. Council Company develops an aged schedule of accounts receivable at the end of each year Council Company:
0 P9-7. Aging ofAccounts Receivable. Writt-off's Journal Entries. Council Company develops an aged schedule of accounts receivable at the end of each year Council Company: Aged Schedule of Accounts Receivable Past Due 1-30 31-60 61.00 Over 90 Customer Current Days Days Days Days Totals GreyCity Products $82,500 $ 82.500 Smokey Industries $45,780 $168.900 345,000 559680 Bleak Enterprses $567.000 567,500 Dritter Incorporated $235,800 34,000 200 270,000 Dent Cosmetic Company 130.700 300 320 131320 Total 5366,500 5601,300 $46,800 $168.000 $427 500 $1,611,000 500 Short Term Operating Assets: Cash and Receivables 493 The company estimated an allowance for uncollectible accounts based on the following estimates: Allowance Aging Category Provided Current 5% 1 30 days past due 9% 31-60days past due 20% 61 90 days past due 55% Over 90 days past due 100% Council reported not credit sales of$20,0000000 for the current year we present the company's ending bal- ances of accounts receivable and the allowance for uncollectible accounts: Accounts Receivable Ending Balance 1,611,000 Allowance for Uncollectible Accounts 94.00 Unadjusted end ng Balance Required a Compute the balance required inthe allowance for uncollectible accounts. b Prepare thejournal entry to record the bad debt provision for the cuirent year. c. Independent of your answer to part (b), prepare the journal entry to record the bad debt provision for the current year assuming that the allowance for uncollectible accounts had a 5231.400 debit balance d Piovide the necessary journal entry based on Council's credit management deciding to write off all accounts that were over 90days past due in the following year. e Prepare the journal entries required to record the subsequent recovery of Smokey Industries' receivable if after the write offs recorded in part (d). Smokey Industries pays the entire balance due 0 P9-7. Aging ofAccounts Receivable. Writt-off's Journal Entries. Council Company develops an aged schedule of accounts receivable at the end of each year Council Company: Aged Schedule of Accounts Receivable Past Due 1-30 31-60 61.00 Over 90 Customer Current Days Days Days Days Totals GreyCity Products $82,500 $ 82.500 Smokey Industries $45,780 $168.900 345,000 559680 Bleak Enterprses $567.000 567,500 Dritter Incorporated $235,800 34,000 200 270,000 Dent Cosmetic Company 130.700 300 320 131320 Total 5366,500 5601,300 $46,800 $168.000 $427 500 $1,611,000 500 Short Term Operating Assets: Cash and Receivables 493 The company estimated an allowance for uncollectible accounts based on the following estimates: Allowance Aging Category Provided Current 5% 1 30 days past due 9% 31-60days past due 20% 61 90 days past due 55% Over 90 days past due 100% Council reported not credit sales of$20,0000000 for the current year we present the company's ending bal- ances of accounts receivable and the allowance for uncollectible accounts: Accounts Receivable Ending Balance 1,611,000 Allowance for Uncollectible Accounts 94.00 Unadjusted end ng Balance Required a Compute the balance required inthe allowance for uncollectible accounts. b Prepare thejournal entry to record the bad debt provision for the cuirent year. c. Independent of your answer to part (b), prepare the journal entry to record the bad debt provision for the current year assuming that the allowance for uncollectible accounts had a 5231.400 debit balance d Piovide the necessary journal entry based on Council's credit management deciding to write off all accounts that were over 90days past due in the following year. e Prepare the journal entries required to record the subsequent recovery of Smokey Industries' receivable if after the write offs recorded in part (d). Smokey Industries pays the entire balance due
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