Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

At December 31 of the current year, the Sheridan Nurseries Company had a balance of $160,000 in its Accounts Receivable account and a credit balance

At December 31 of the current year, the Sheridan Nurseries Company had a balance of $160,000

in its Accounts Receivable account and a credit balance of $1,700 in its Allowance for

Uncollectible Accounts. The Accounts Receivable subsidiary ledger consisted of $161,500 in

debit balances and $1,500 in credit balances. The following schedule shows the company's

analysis of Accounts Receivable balances at December 31, and the percentages of each age

group that have proven uncollectible in the past.

Amount Percent Doubtful

Current $133,000 1

0-60 Days Past Due 15,000 5

61-180 Days Past Due 8,000 15

Over Six Months Past Due 4,500 40

Total Past Due $160,500

Note: if needed prepare the adjusting journal entry to record the provision for credit losses for the

year.

11) The adjustment to the Allowance for Uncollectible Accounts at Dec 31st is:

a) 5,080

b) 3,390

c) 3,380

d) 0

e) None of the above

12) The balance of the account Allowance for Uncollectible Accounts at Dec 31st is:

a) 5,090

b) 3,390

c) 1,700

d) 0

e) None of the above

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

Payroll Accounting

Authors: Bernard J. Bieg, Judith A. Toland

2013 edition

113396253X, 978-1133962533

More Books

Students also viewed these Accounting questions

Question

What are equivalent units of production?

Answered: 1 week ago

Question

What background experience do you have?

Answered: 1 week ago

Question

3. What is my goal?

Answered: 1 week ago

Question

2. I try to be as logical as possible

Answered: 1 week ago