Question
A company is preparing year-end financial statements. The company uses the aging of receivables method to calculate bad debt expense. At the beginning of the
A company is preparing year-end financial statements. The company uses the aging of receivables method to calculate bad debt expense. At the beginning of the year, the companys balance in its Allowance for Uncollectible Accounts was $65,000. Throughout the year, the company wrote-off $72,000 in overdue accounts. The company has compiled the following table concerning its receivables at year-end.
Current | Less than 30 days | 30-60 days | More than 60 days | Total | |
Estimated % Uncollectible | 1% | 2% | 4% | 10% |
Provide the financial statement template effects for the write-offs during the year as well as the adjustment for bad debt expense at the end of the year.
Show how Accounts Receivable, Net and Bad Debt Expense would be formally reported on the companys financial statements. In other words, show me the line-item (i.e., a snapshot or picture of how these accounts would appear) on the applicable financial statements. Make sure you identify the appropriate financial statement as well.
Less than 30 Days More than 60 30-60 Days Days 1,804 641 22,358 11,692 12,008 4,192 2,192 2,252 375 906 Customer Name Abc Enterprises Inc Ballard Spahr Andrews Benton, John B Jr Bollinger Mach Shp & Shipyard Bolton, Wilbur Esq Buckley Miller & Wright C4 Network Inc Cascade Realty Advisors Inc Century Communications Chanay, Jeffrey A Esq Chapman, Ross E Esq Chemel, James L. Cpa Cindy Turner Associates Clark, Richard Cpa Commercial Press Dorl, James) Esq Eder Assocs Consltng Engrs Pc Farmers Insurance Group Fbs Business Finance Feiner Bros Feltz Printing Service Franklin, Peter L Esq Giampetro, Anthony D Grace Pastries Inc Ingalls, Donald R Esq International Eyelets Inc King, Christopher A Esq Knights Inn Knwz Newsradio Ledecky, David Esq Lowy Limousine Service Milford Enterprises Inc Morlong Associates Moskowitz, Barry S Mosocco, Ronald A Orinda News Parkway Company Post Box Services Plus Printing Dimensions Professional Image Inc Rangoni Of Florence Rapid Trading Intl Rousseaux, Michael Esq Current 60,940 953,806 95,352 2,276 13,415 100,209 109,220 225,198 25,506 116,530 2,653 27,948 14,616 15,011 4,352 57,880 116,857 3,594 48,419 4,546 565,883 51,457 9,580 322,586 97,796 3,750 782,387 3,047 131,159 263,090 30,269 236,509 5,826 126,282 9,756 4,738 34,919 911 616,853 348,859 38,207 49,865 12,612 3,088 104,591 27,386 45,596 1,463 710 244 118 3,790 1,109 208 35 3,378 633 Schroer, Gene E Esq Sider, Donald C Esq Sport En Art Stanton, James D Esq TM Byxbee Company PC Tri M Tool Inc Tri State Refueler Co Truhlar And Truhlar Attys U Pull It Vicon Corporation Wtlz Power 107 Fm 1,387 408,511 4,223 295,931 51,544 1,840 7,632 9,061 71,487 19,980 66,373 276 46 9,061Step by Step Solution
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