Receivables and Revenue Evaluate collectibility using the allowance for uncollectible accounts The following data is given for Autumn Corporation for the end of the current year (before adjusting entries). Accounts Receivable S 76,000 Allowance for Uncollectible Accounts (credit balance) Service revenue for the year (all on credit) S 11,000 $ 490,000 Estimated uncollectible-account expense rate (Requirement 1 assumption) Estimated Allowance for Uncollectible Accounts credit 2% of credit sales 21,000 balance (Requirement 2 assumption) 2 Use the blue shaded areas on the ENTERANSWERS tab for inputs. 3 Always 4 tab you will be marked wrong. use cell references and formulas where appropriate to receive full credit. If you copy/paste from the Instruction 5 6 Requirements 1 Using the percent-of-sales method, calculate the amount of Uncollectible-Account Expense using Autumn Corporations estimated uncollectible-account expense rate identified in the data table. What is the ending balance of the Allowance for Uncollectible-Accounts under this scenario? 7 Enter all amounts as 8 positive values. a. 2 Now assume that Autumn Corporation uses the aging-of-receivables method. Using the estimated credit balance in its Allowance for Uncollectible Accounts identified in the data table calculate the amount of its Uncollectible-Account Expense. What is the ending balance of the Allowance for Uncollectible Accounts under this scenario? q Enter all amounts as positive values. 0 a. b. Consider this situation independently from the previous one. 1 2 D G A 1. Using the percent-of-sales method, calculate the amount of Uncollectible-Account Expense using Autumn Corporations estimated uncollectible-account expense rate identified in the data table. What is the ending 1 balance of the Allowance for Uncollectible-Accounts under this scenario? 2 (Always use cell references and formulas where appropriate to receive full credit. If you copy/paste from the 3 Instruction tab you will be marked wrong.) 4 5 Uncollectible-Account Expense Allowance for uncollectible 6 accounts, ending balance 7 uses the aging-of-receivables method. Using the estimated credit balance in its Allowance for Uncollectible Accounts identified in the data table calculate the amount of its 2. Now assume that Autumn Corporation Uncollectible-Account Expense. What is the ending balance of the Allowance for Uncollectible Accounts 8 under this scenario? 9 (Always use cell references and formulas where appropriate to receive full credit. If you copy/paste from the 10 Instruction tab you will be marked wrong.) 11 12 Uncollectible-Account Expense Allowance for uncollectible 13 accounts, ending balance 14
