Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Term Test #3 Question 3 of 14 -/5 E Ivanhoe Company has accounts receivable of $175,000 at September 30, 2021. An analysis of the accounts

image text in transcribed
image text in transcribed
image text in transcribed
Term Test #3 Question 3 of 14 -/5 E Ivanhoe Company has accounts receivable of $175,000 at September 30, 2021. An analysis of the accounts shows the following: Month of Sale Balance September $123,000 August 26,000 July 15,000 April, May, and June 11,000 $175,000 Credit terms are 2/10,n/30. The unadjusted balance in the Allowance for Doubtful Accounts on September 30, 2021, is $1.520 debit. The company uses an aging schedule to estimate uncollectible accounts. The company's percentage estimates of bad debts are as follows: Number of Days Outstanding Estimated % Uncollectible 0-30 1% 31-60 10% 61-90 25% Over 90 60% Prepare an aging schedule to determine the total estimated uncollectible accounts at September 30, 2021. Estimated Uncollectible Age of Accounts Amount % 0-30 days outstanding $123,000 1% $ 26,000 10% 31-60 days outstanding 61-90 days outstanding 15,000 25% Over 90 days outstanding 11,000 60% Question 3 of 14 - /5 Question Part Score --12 What is the carrying amount of the accounts receivable at September 30, 2021? Carrying amount $ Question Part Score --11 Prepare the adjusting entry at September 30 to record bad debt expense. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter for the amounts.) Date Account Titles and Explanation Debit Credit Sept. 30 (To record estimate of uncollectible accounts.)

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

Students also viewed these Accounting questions

Question

Does it exceed two pages in length?

Answered: 1 week ago

Question

Does it avoid typos and grammatical errors?

Answered: 1 week ago