Question
The Killers Pesticide Company had a $400 balance in Allowance for Doubtful Accounts at December 31, 2022, before the current year's provision for uncollectible accounts.
The Killers Pesticide Company had a $400 balance in Allowance for Doubtful Accounts at December 31, 2022, before the current year's provision for uncollectible accounts. An aging of the accounts receivable revealed the following:
Estimated Percentage
Uncollectible
Current Accounts $100,000 1%
130 days past due 50,000 3%
3160 days past due 40,000 5%
6190 days past due 20,000 10%
Over 90 days past due 10,000 20%
Total Accounts Receivable $220,000
Instructions: You MUST show your work to receive full credit.
(a) Determine the desired ending balance for Allowance for Doubtful Accounts
(b) Determine the amount to recognize as bad debt expense on December 31, 2022.
(c) What amount that is reported as the net balance for Accounts Receivable as of December 31, 2022 on the Balance Sheet?
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started