Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Multiple Choice will be done online in D2L Quiz - don't forgel! Short answers and problems. In the space provided, answer the following questions. Be

image text in transcribed
image text in transcribed
Multiple Choice will be done online in D2L Quiz - don't forgel! Short answers and problems. In the space provided, answer the following questions. Be sure to show any comptations. If a statement is to be prepared, it should be prepared in good form. Point values are shown for each question 1. (11 points total) Lattice Company sells product to customers on open account. They use the allowance method and determine the balance required in the allowance for doubtful accounts by reviewing an aging of their accounts receivable. Following is an aging as of December 31, 2019. Complete each of the steps below. Point values are shown for each part. a. (5 points) Using this aging, compute the estimated amount of uncollectible accounts as of December 31, 2019. ***** Company Accounts Receivable Aging Summary As of Dec 31, 2019 Estimated % Uncollectible 1.5% 5.0% 7.0% Age of Accounts (days past due) 0 - 30 days 31 -60 days 61 - 90 days 91 - 180 days over 180 days Total accounts Account Totals 350,000.00 70,000.00 20,000.00 10,000.00 50,000.00 500,000.00 15.0% 50.0% The estimated total of the uncollectible accounts equals: b. (2 points) Write out the adjusting entry as of December 31, 2019. Assume that the Allo Doubtful Accounts has a credit balance of $4,000 at December 31, 2019 before adjustm c. (2 points) Write out the adjusting entry as of December 31, 2019. Assume that the Allowance for Doubtful Accounts has a debit balance of $800 at December 31, 2019 before adjustments. d. (2 points) On June 30, 2020, Lattice Company received a notice that one of their customers, Thorson, has filed for bankruptcy. Lattice Company reviews the situation and decides to write off the $10,000 balance owed by Thorson. Write out the journal entry for this write-off as of June 30, 2020

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

Managerial Accounting Information For Decisions

Authors: Thomas L. Albright , Robert W. Ingram, John S. Hill

4th Edition

0324222432, 978-0324222432

More Books

Students also viewed these Accounting questions

Question

What irritates you the most about how others handle conflict? Why?

Answered: 1 week ago