Seminar Five Problem Solutions (1) - Chapter 8 Problem...

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Chapter 8 Problem SolutionsP2. Accounts Receivable Aging Method1.Techno Designs StoreAging Analysis of Accounts ReceivableJanuary 31, 20151–3031–6061–90OverCustomerNot YetDaysDaysDays90 DaysAccountTotalDuePast DuePast DuePast DuePast DueBalanceForward$793,791$438,933$149,614$106,400$57,442$41,402J. Curtis11,07711,077T. Dawson9,3149,314L. Zapata8,6648,664R. Copa780780E. Land14,71014,710S. Qadri6,3166,316A. Rosenthal4,3894,389$849,041$452,636$175,401$115,064$63,758$42,1822.Accounts ReceivableBeginning balance$442,341Credit sales3,722,000Subtotal$4,164,341Less:Sales returns and allowances$60,000Accounts written off44,300Collections from customers3,211,0003,315,300Ending balance$849,041Allowance for Uncollectible AccountsBeginning credit balance$43,700Less accounts written off44,300Debit balance at end of year$600
P2. Accounts Receivable Aging Method(Concluded)3.Techno Designs StoreEstimated Uncollectible AccountsJanuary 31, 2015PercentageAllowance forConsideredUncollectibleAmountUncollectibleAccounts*Not yet due$452,6362$ 9,0531–30 days past due175,40158,77031–60 days past due115,0641517,26061–90 days past due63,7582515,940Over 90 days past due42,1825021,091$849,041$72,114*Rounded4.Desired balance$72,114Debit balance in allowance account600Amount of expense$72,714

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Term
Fall
Professor
Blackmon
Tags
Accounting, Depreciation, Uncollectible Accounts, maturity value

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