Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Entry for Uncollectible Accounts Sun Valley Rides is a wholesaler of motorcycle supplies. An aging of the company's accounts receivable on December 31, 2013, and
Entry for Uncollectible Accounts Sun Valley Rides is a wholesaler of motorcycle supplies. An aging of the company's accounts receivable on December 31, 2013, and a historical analysis of the percentage of uncollectible accounts in each age category are as follows: Age Interval Balance Percent Uncollectible Not past due $1,687,500 2% 1-30 days past due 750,000 31-60 days past due 112,500 6 61-90 days past due 50,000 16 91-180 days past due 25,000 51 Over 180 days past due 12.500 91 $2,637,500 Assume that the allowance for doubtful accounts for Sun Valley Rides had a negative balance of $(27,335) as of December 31, 2013. Illustrate the effects of the adjustment for uncollectible accounts as of December 31, 2013, on the accounts and financial statements. If no account or activity is affected, select "No effect" from the dropdown list and leave the corresponding number entry box blank. Enter account decreases and cash outflows as negative amounts. Balance Sheet Assets Liabilities Stockholders' Equity 750,000 1-60 days past due 112,500 6 1.90 days past due 50,000 16 1180 days past due 25,000 51 Over 180 days past due 12,500 81 $2,637,500 ssume that the allowance for doubtful accounts for Sun Valley Rides had a negative balance of $(37,335) as of December 31, 2013. llustrate the effects of the adjustment for uncollectible accounts as of December 31, 2013, on the accounts and financial statements. at no account or activity is affected, select "No effect from the dropdown list and leave the corresponding number entry box blare Enter account decreases and cash outflows as negative amounts. N Balance Sheet Assets Liabilities Stockholders' Equity Dec. 31. Statement of Cash Flows Income Statement
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started