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PLEASE HELP ...if you have to zoom in on the pics, my apologies. it was difficult to crop. On January 1, 2016, Raptor Electronics purchases
PLEASE HELP ...if you have to zoom in on the pics, my apologies. it was difficult to crop.
On January 1, 2016, Raptor Electronics purchases a building for $179,000. At first, it estimated that it would last for 25 years and have a salvage value of $4,000. The company uses the straight-line method to depreciate its assets. After 4 years of depreciation (on January 1, 2020), the company revises its estimates. It now estimates that the building will last for only 16 more years with a salvage value of $5,000. What is the depreciation expense in 2020? Round to the nearest dollar. You are an accountant at Company DEF, which has a fiscal year ending on December 31. It is now December 31, 2020, and you are getting ready to record the adjusting journal entry for this year's bad debt expense. The credit department has prepared for you a list of your six customers accounts receivables with their respective ages. Accounts Receivable Age Amounts 31 - 60 days past due $41,000 B 31 60 days past due $37.000 Not yet due $60,000 D 60 days past due $18,500 F Not yet due $13.000 The credit department estimates the following % of uncollectible accounts receivable by age: Status Estimated % Uncollectible A/R Not yet due 18 60 days past due 75% You then inspect the accounting records for the year and note that during 2020, the company had write-offs of $34,400 and recoveries of $300. The beginning of the year's Allowance for Doubtful Accounts (AFDA) had a credit balance of $28,800 (as of 01/01/2020). You also note that total credit sales during 2018 were $2,700,000. The credit department informs you that historically, 1.5% of credit sales have proven to be uncollectible Use the following numeric format to answer the questions: 12345 (no commas, no dollar signs) (a) Using the Aging of Accounts Receivable method, what is the bad debt expense for 20202 (b) Using the Aging of Accounts Receivable method, what is the ending balance for the Allowance for Doubtful Accounts for 2020? ( Using the Aging of Accounts Receivable method, what is the net accounts receivable that the company has at the end of 2020? (d) Using the Percent of Sales method, what is the bad debt expense for 2020? teUsing the Percent of Sales method, what is the ending balance for the Allowance for Doubtful Accounts for 2020, assuming that the beginning balance for AFDA was $28,8002Step by Step Solution
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