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Problem 6 : Philpott Inc. uses the allowance method in accounting for uncollectible accounts. When estimating the allowance, the company uses the aging schedule of
Problem :
Philpott Inc. uses the allowance method in accounting for uncollectible accounts. When estimating the allowance, the company uses the aging schedule of accounts receivable.
The balance of each accounts receivable is aged on the basis of four categories as follows: days old, days old, days old, and more than days old. Experience has shown that for each age group, the average loss rate on the amount of the receivable due to uncollectibility is and respectively. At December the unadjusted normal balance in the Allowance for Doubtful Accounts was $ and the total amounts receivable in each category were: days old, $; days old, $; days old, $; and more than days old, $
Required: Provide an answer to each of the following in the area provided, Round all values to the nearest dollar.
a: Prepare an aging schedule to estimate an appropriate yearend balance for the Allowance for Doubtful Accounts using the allowance method.
tableTotal:, Days Old:, Days Old:, Days Old:, Days Old:Accounts Receivable,type your answer...,type your answer...,type your answer...,type your answer...,Estimated Uncollectible type your answer...,type your answer...,type your answer...,Estimated Uncollectible $type your answer...,type your answer...,type your answer...,type your answer...,
b: What amount would be reported on the income statement for the year ending December for Bad Debt Expense?
c: Prepare the December journal entry to record the company's bad debt expense.
tableReference:Account Title:,Debit:,Credit:type your answer...,type your answer...,type your answer...type your answer...,type your answer...,type your answer...
d: At December what amount would be reported in the current asset section of a classified balance sheet for the Net Accounts Receivable account?
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