Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

OBJ.4 EX 9-9 Estimating allowance for doubtful accounts Waddell Industries has a past history of uncollectible accounts, as follows. Estimate the allowance for doubtful accounts,

image text in transcribed
image text in transcribed
image text in transcribed
OBJ.4 EX 9-9 Estimating allowance for doubtful accounts Waddell Industries has a past history of uncollectible accounts, as follows. Estimate the allowance for doubtful accounts, based on the aging of receivables schedule you com pleted in Exercise 9-8. Age Class Not past due 1-30 days past due 31-60 days past due 61-90 days past due Over 90 days past due Percent Uncollectible 3% 4 15 35 80 443 Chapter 9 Receivables EX 9-10 Adjustment for uncollectible accounts OBJ. 4 Using data in Exercise 9-9, assume that the allowance for doubtful accounts for Waddell Industries has a credit balance of $6,350 before adjustment on August 31. Journalize the adjusting entry for uncollectible accounts as of August 31. The accounts receivable clerk for Waddell Industries prepared the following partially completed aging of receivables schedule as of the end of business on August 31; September September 19 July 15 August 24 May 12 Avanche lates Auto Derby Auto Repair Lucky Auto Repair 1.100 Pit Stop Auto Reliable Auto Repair 9.750 Trident Auto 1,800 Valley Repair & Tow 4,000 Determine the member of days each account is past due as of October 31, 9-8 Aging of receivables 03). G D F Days Past Due B Over 90 61-90 c Not Past Due 3.000 31-60 Balance 3,000 4,500 Customer 4 Aome Industries Inc 5 Allance Company 4,500 5.000 21 Zollinger Company 5.000 85,000 30.000 22 Subtotais 7,050,000 600.000 220.000 115,000 looooo The following accounts were unintentionally omitted from the aging schedule and not included in the preceding subtotals: Customer Balance Due Date Builders Industries $44,500 May 12 Elkhorn Company 21,000 June 2012 Granite Creek Inc 7,500 July 13 41 Lockwood Company 14,000 September 9 JUT Teton Company 13,000 August 7 1.4 a. Determine the number of days past due for each of the preceding accounts as of August 31 b. Complete the aging of receivables schedule by adding the omitted accounts to the bottom of the schedule and updating the totals. for unts, EX 9-9 Estimating allowance for doubtful accounts OBJ.4 Waddell Industries has a past history of uncollectible accounts, as follows. Estimate the allowance for doubtful accounts, based on the aging of receivables schedule you com- pleted in Exercise 9-8. Age Class Not past due 1-30 days past due 31-60 days past due 61-90 days past due Over 90 days past due Percent Uncollectible 396 4 15 35 80

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

Corporate Finance Demystified

Authors: Troy Adair

1st Edition

0071459103, 9780071459105

Students also viewed these Accounting questions

Question

=+c) What are the factors?

Answered: 1 week ago