Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

ANSWER ALL THREE PARTS PLEASE You are an accountant at XYZ company, which has a fiscal year ending on December 31. It is now December

ANSWER ALL THREE PARTS PLEASE image text in transcribed
image text in transcribed
You are an accountant at XYZ company, which has a fiscal year ending on December 31. It is now December 31, 2020, and you are getting ready to record the adjusting journal entry for this year's bad debt expense. The credit department has prepared for you the following accounts receivable aging schedule, which includes the estimated percentages of each aging bucket that they think will be uncollectible. The estimated percentages are the same for both dates provided. Status Estimated % Uncollectible 2% 5% Not yet due 180 days past due Accounts Receivable Balance at Dec 31, Balance at Dec 31 2020 2019 $2,150,000 $2,341,000 $720,000 $570,000 $386,000 $414,000 $ 105,000 $64,000 $50,000 $32,000 10% 25% 85% You then inspect the accounting records for the year and note that during 2020, the company had write-offs of $162,000 and recoveries of $6,500. You also note that the total credit sales during 2020 were $14,350,960. The credit department informs you that historically, 1.25% of credit sales have proven to be uncollectible. a) Suppose that XYZ company uses the aging method of estimating uncollectible accounts. What is the amount of bad debt expense for 2020? a) Suppose that XYZ company uses the aging method of estimating uncollectible accounts. What is the amount of bad debt expense for 2020? [ Select] b) Using the aging method of estimating uncollectible accounts, what is the ending balance for the Allowance for Doubtful Accounts for 2020? [ Select] c) Suppose that XYZ company uses the percent of sales method to estimate uncollectible accounts. What is the amount of bad debt expense for 2020? [Select]

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Contemporary Auditing Real Issues And Cases

Authors: Michael C. Knapp

6th Edition

0324303254, 9780324303254

More Books

Students also viewed these Accounting questions

Question

In Problem find each limit if it exists. lim (x + 5) -4

Answered: 1 week ago

Question

How to find if any no. is divisble by 4 or not ?

Answered: 1 week ago

Question

Explain the Pascals Law ?

Answered: 1 week ago

Question

What are the objectives of performance appraisal ?

Answered: 1 week ago