Estimating Uncollectible Accounts and Reporting Accounts Receivable LaFond Company analyzes its accounts receivable at December 31,...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
Estimating Uncollectible Accounts and Reporting Accounts Receivable LaFond Company analyzes its accounts receivable at December 31, and arrives at the age categories below along with the percentages that are estimated as uncollecti Accounts Estimated Age Group 0-30 days past due Receivable Loss % $90,000 296 31-60 days past due 20,000 4 61-120 days past due 11,000 5 121-180 6,000 10 Over 180 days past due Total accounts receivable 4,000 $131,000 25 The balance of the allowance for uncollectible accounts is $520 on December 31, before any adjustments. (a) What amount of bad debts expense will LaFond report in its income statement for the year? $ 4,230 (b) Use the financial statement effects template to record LaFond's bad debts expense for the year. Use negative signs with your answers, when appropriate. Balance Sheet Transaction Cash Asset + Record bad debts expense Noncash Assets (4,230) = Liabilities Contributed Capital + Earned Capital 0 0 (4,230) (c) What is the balance of accounts receivable on it December 31 balance sheet? Income Statement 0 Expenses 4,230 Net Income (4,230) Revenue Estimating Uncollectible Accounts and Reporting Accounts Receivable LaFond Company analyzes its accounts receivable at December 31, and arrives at the age categories below along with the percentages that are estimated as uncollecti Accounts Estimated Age Group 0-30 days past due Receivable Loss % $90,000 296 31-60 days past due 20,000 4 61-120 days past due 11,000 5 121-180 6,000 10 Over 180 days past due Total accounts receivable 4,000 $131,000 25 The balance of the allowance for uncollectible accounts is $520 on December 31, before any adjustments. (a) What amount of bad debts expense will LaFond report in its income statement for the year? $ 4,230 (b) Use the financial statement effects template to record LaFond's bad debts expense for the year. Use negative signs with your answers, when appropriate. Balance Sheet Transaction Cash Asset + Record bad debts expense Noncash Assets (4,230) = Liabilities Contributed Capital + Earned Capital 0 0 (4,230) (c) What is the balance of accounts receivable on it December 31 balance sheet? Income Statement 0 Expenses 4,230 Net Income (4,230) Revenue
Expert Answer:
Related Book For
Financial Accounting
ISBN: 9781618533111
6th Edition
Authors: Michelle L. Hanlon, Robert P. Magee, Glenn M. Pfeiffer, Thomas R. Dyckman
Posted Date:
Students also viewed these accounting questions
-
Flexible Budget Application The polishing department of Taylor Manufacturing Company operated during April with the following manufacturing overhead cost budget based on 4 , 0 0 0 hours of monthly...
-
The minimum kinetic energy needed by an alpha particle to cause the nuclear reaction N + He H + O in a laboratory frame is n (in MeV). Assume that N is at rest in the 16 laboratory frame. The masses...
-
LaFond Company analyzes its accounts receivable at December 31, and arrives at the aged categories below along with the percentages that are estimated as uncollectible. The unused balance of the...
-
ed The Engine Guys produces specialized engines for "snow climber buses. The company's normal monthly production volume is 2,500 engines, whereas its monthly production capacity is 5,000 engines. The...
-
In problems, find each value without using a calculator. (a) cos[2sin-1(-2/3)] (b) tan[2tan-1(1/3)] (c) sin[cos-1(3/5) + cos-1(5/13)] (d) cos[cos-1(4/5) + sin-1(12/13)]
-
Which of the following statements is not correct? a. CGI was one of the first technologies that allowed for the construction of dynamic web pages. b. CGI programs can be written in almost any...
-
Outline the steps in the fraud hypothesis testing approach. What are Type II errors? How does one avoid Type II errors?
-
The ledger of Aiden Durant and Jasmine Adkins, attorneys-at-law, contains the following accounts and balances after adjustments have been recorded on December 31, 2012: The balance in Adkins' capital...
-
Perez and Daganta are partners who share profits and losses in a ratio of 2:1 and have capital balances of P750,000 and P1,500,000, respectively. Barros invested P750,000 for a 35% interest in the ...
-
Ashton and Melody Webb are a married couple in their mid-20s. Ashton has a good start as an electrical engineer and Melody works as a sales representative. Since their marriage four years ago, Ashton...
-
A 100, 000 face value Italian-issued (i.e., Euro-denominated) discount security with a standard 180-day maturity has 46 days to maturity was issued at a discount rate of 2.4 % but is now trading at a...
-
1. Deferred tax liability, January 1, 2025, $30,300. 2. Deferred tax asset, January 1, 2025, $10,100. 3. Taxable income for 2025, $106,050. 4. 5. 6. 7. Cumulative temporary difference at December 31,...
-
Welch Corporation just paid its annual dividend of $2.00 per share. The firm is expected to grow at a rate of 15 percent for the next three years and then at 6 percent per year thereafter. The...
-
Mary was so excited about the holiday shopping season that she could hardly wait for the Black Friday sales. She got up early and spent all day at her favorite store, Mega Deals, shopping. Mary was...
-
The following diagram represents the ownership of issued share capital of the companies in a group. What is the total non-controlling interest in D Ltd? A: 20 per cent B: 33.6 per cent C: 60 per...
-
A U.S. investor is considering investing $100 million in Fiat stock in Italy. The stock has an expected return of 5% in euros, including the dividend yield, and the investor is forecasting a 3%...
-
1. Suppose that r(t) = (3 cos(2t) - t, 3 sin(2t), 2t). a. Determine the velocity, the acceleration and the speed for t = /2. b. Determine whether the angle between the velocity vector and the...
-
a) Show that (a, b) := {{a}, {b}} does not satisfy the ordered pair axiom. b) Determine whether each of the following statements is true or false. (Give a reason in each case): (i) {a, b} C (a, b)....
-
Wolff Company's income statement and comparative balance sheets follow. Cash dividends of $29,000 were declared and paid during 2018. Also in 2018, plant assets were purchased for cash, and bonds...
-
The Sarbanes-Oxley legislation requires companies to report on the effectiveness of their internal controls. What are internal controls and their purpose? Why do you think Congress felt it to be such...
-
On December 31,2018, Miller Company had $700,000 in total assets and owed $220,000 to creditors. If this corporation's common stock totaled $300,000, what amount of retained earnings is reported on...
-
Question: Kathleen Carroll, a single woman, applied for an Exxon credit card. Exxon rejected her application without giving any specific reason and without providing the name of the credit bureau it...
-
Question: In August, Ethel Jenkins went to First American Mortgage and Loan Association of Virginia (the Bank) to sign a second mortgage on her home. Her first mortgage was with a different bank. She...
-
Question: Joel Curtis was two years old and his brother, Joshua, was three years old when their father left both children asleep in the rear seat of his automobile while visiting a friend. His...
Study smarter with the SolutionInn App