Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

The following information applies to the questions displayed below.] Execusmart Consultants has provided business consulting services for several years. The company uses the percentage of

image text in transcribedimage text in transcribedimage text in transcribedimage text in transcribedimage text in transcribed

The following information applies to the questions displayed below.] Execusmart Consultants has provided business consulting services for several years. The company uses the percentage of credit sales method to estimate bad debts for internal monthly reporting purposes. At the end of each quarter, the company adjusts its records using the aging of accounts receivable method. The company entered into the following partial list of transactions a. During January, the company provided services for $280,000 on credit. b. On January 31, the company estimated bad debts using 1 percent of credit sales c. On February 4, the company collected $140,000 of accounts receivable d. On February 15, the company wrote off a $550 account receivable e. During February, the company provided services for $230,000 on credit. f. On February 28, the company estimated bad debts using 1 percent of credit sales g. On March 1, the company loaned $18,000 to an employee, who signed a 10% note due in 3 months h. On March 15, the company collected $550 on the account written off one month earlier i. On March 31, the company accrued interest earned on the note j. On March 31, the company adjusted for uncollectible accounts, based on the following aging analysis Allowance for Doubtful Accounts has an unadjusted credit balance of $7,600 Number of Days Unpaid Customer Total 0-30 31-60 61-90 Over 90 $ 1,600 $700$ 600 300 Arrow Ergonomics Asymmetry Architecture Others (not shown to save space) Weight Whittlers 2,800 93,100 2,800 35,500 2,800 $ 2,800 4,800 47,000 5,800 $100,300 $ 39,000 $ 47,600 $6,100$ 7,600 Total Accounts Receivable Estimated Uncollectible (%) 2% 15% 25% 45%

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

Auditing

Authors: Karla M. Johnstone, Audrey A. Gramling, Larry E. Rittenberg

8th International Edition

0538477660, 978-0538477666

More Books

Students also viewed these Accounting questions

Question

Solve the following 1,4 3 2TT 5x- 1+ (15 x) dx 5X

Answered: 1 week ago