Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Milo Tindolini Co. Maintains an allowance for doubtful accounts which is charged when an accounts receivable are written off. I already understand how to do
Milo Tindolini Co. Maintains an "allowance for doubtful accounts" which is charged when an accounts receivable are written off.
I already understand how to do "A," i am getting confused on what he wants for the rest exactly
PLEASE HELP!
Milo Tindolini Co. Milo Tindolini Co. maintains an "allowance for doubtful accounts" which is charged when an accounts receivable are written off. As of January 1, 2020 the allowance account had a credit balance of $ 49,800 During January 2020 the following bad-debt related activity occurred: 5-Jan Wrote off balance due from NY Islanders Ltd. $ 4,450 8-Jan Wrote off balance due from LAMCO Ent. Inc., $ 2,470 16-Jan Wrote off balance due from Weinstein Ltd., $ 3,320 20-Jan Wrote off balance due from Trendmaker Mkt, $ 980 25-Jan Reinstated $ 741 of LAMCO Ent accounts receivable and recorded the collection on account. 29-Jan Wrote off balance due from NY Mets Inc. $ 1,645 For the month ended January 31, 2020 Milo reported sales of $ 2,325,000 and provided the following analysis of accounts receivable: Age intervals Current 1 - 30 days 31 - 60 days 61 - 90 days 90+ days Total estimated bad debts Est.% not collectible 1.0% 2.5% 5.0% 7.0% 25.0% Aged Accts. Rec. $ 931,000 495,000 327,000 58,000 23,620 $ 1,834,620 Est. amount not collectible 9,310 12,375 16,350 4,060 5,905 $ 48,000 Required: Prepare the journal entries relative to the transactions from January 5th through January 29th. Prepare a "T" account which reflects the activity and account balance for "Allowance for Doubtful Accounts up to and including January 31st. Assuming Milo uses the above aging for purposes of estimating Bad Debts 1 Prepare the required month-end adjustment for Bad Debts 2 Calculate the post adjustment balance in "Allowance for doubtful accounts" 3 Calculate the Expected realizable value of Accounts Receivable as of January 31, 2020 Assuming Milo uses the % of sales method for purposes of estimating Bad Debts and 0.5% is the amount of sales deemed uncollectible: Prepare the required month-end adjustment for Bad Debts Calculate the post adjustment balance in "Allowance for doubtful accounts" 3 Calculate the Expected realizable value of Accounts Receivable as of January 31, 2020Step 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