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  • I-07.04 Student

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    MA
    132 vizualizări3 pagini
    Allowance for Uncollectible Accounts is a contra-asset account used to estimate uncollectible receivables. It is not possible for this account to have a debit balance, as it is intended to reduce the reported balance of Accounts Receivable. A debit to Allowance would incorrectly increase both Accounts Receivable and total assets.

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    Allowance for Uncollectible Accounts is a contra-asset account used to estimate uncollectible receivables. It is not possible for this account to have a debit balance, as it is intended to reduce the reported balance of Accounts Receivable. A debit to Allowance would incorrectly increase both Accounts Receivable and total assets.

    Drepturi de autor:

    Attribution Non-Commercial (BY-NC)
    Descărcați ca XLS, PDF, TXT sau citiți online pe Scribd
    Indicator pentru conținut neadecvat
    132 vizualizări3 pagini

    I-07.04 Student

    Încărcat de

    MA
    Allowance for Uncollectible Accounts is a contra-asset account used to estimate uncollectible receivables. It is not possible for this account to have a debit balance, as it is intended to reduce the reported balance of Accounts Receivable. A debit to Allowance would incorrectly increase both Accounts Receivable and total assets.

    Drepturi de autor:

    Attribution Non-Commercial (BY-NC)
    Descărcați ca XLS, PDF, TXT sau citiți online pe Scribd
    Indicator pentru conținut neadecvat
    din 3

    I-07.

    04

    Walt's manufactures and sells customized work clothes and uniforms. Following is a list of accounts receivable as of December 31, 2010. Customer Air There Freight Aurora Batesville CarMan Clinic Quick Delorres River Guides Elonzo's Restaurant Hospital Supply Inidigo Meridan Oil Museum of Art Novellus Norman's Robert Ricketts Sanchez Systems Security by the Hour Stop Shop Target Time Uvlade Ranch Xhi Zebra Sports (a) Date of Sale December 11, 2010 November 12, 2010 August 18, 2010 December 9, 2010 August 15, 2009 September 19, 2010 December 17, 2010 December 4, 2010 November 29, 2010 May 20, 2010 December 21, 2010 February 16, 2010 December 23, 2010 December 14, 2010 October 25, 2010 December 13, 2010 December 27, 2010 February 3, 2010 December 7, 2010 October 20, 2010 December 3, 2010 Amount 12,300 5,000 14,805 21,900 16,040 8,990 11,789 135,100 16,500 11,786 255,000 18,780 10,000 3,550 22,310 40,900 34,700 14,440 3,700 15,100 144,000

    Sort the receivables list by age category and determine the estimated balance of uncollectible accounts. Walt's believes the following rates of noncollection will occur: 1% of receivables up to 30 days, 3% for 31 to 90 days, 10% for 91 to 180 days, and 40% of accounts over 180 days. If the balance of Allowance for Uncollectible Accounts contained $15,000 (credit), what adjusting entry is needed to reflect the analysis from part (a). If the balance of Allowance for Uncollectible Accounts contained $15,000 (debit), what adjusting entry is needed to reflect the analysis from part (a). How is it possible that the allowance account could contain a debit balance, as in part (c)?

    (b) (c) (d)

    Name: Date: Section:

    I-07.04(a)

    Customer Air There Freight Aurora Batesville CarMan Clinic Quick Delorres River Guides Restaurant Elonzo's Hospital Supply Inidigo Meridan Oil Museum of Art Norman's Novellus Robert Ricketts Sanchez Systems Security by the Hour Stop Shop Target Time Uvlade Ranch Xhi Zebra Sports

    Date of Sale December 11, 2010 November 12, 2010 August 18, 2010 December 9, 2010 August 15, 2009 September 19, 2010 December 17, 2010 December 4, 2010 November 29, 2010 May 20, 2010 December 21, 2010 December 23, 2010 February 16, 2010 December 14, 2010 October 25, 2010 December 13, 2010 December 27, 2010 February 3, 2010 December 7, 2010 October 20, 2010 December 3, 2010

    Amount 12,300 5,000 14,805 21,900 16,040 8,990 11,789 135,100 16,500 11,786 255,000 10,000 18,780 3,550 22,310 40,900 34,700 14,440 3,700 15,100 144,000

    AGE

    BALANCE

    ESTIMATED % UNCOLLECTIBLE 1% 3% 10% 40%

    ESTIMATED AMOUNT UNCOLLECTIBLE $ -

    0 to 30 days 31 to 90 days 91 to 180 days Over 180 days

    Name: Date: Section:

    I-07.04(b-d)

    GENERAL JOURNAL
    Date Accounts Debit Credit

    (b)

    (c)

    (d)

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