ORIE_350_Homework__5_answers - ORIE 350 Homework #5 Due...

Info iconThis preview shows pages 1–3. Sign up to view the full content.

View Full Document Right Arrow Icon
ORIE 350 Homework #5 Due February 27, 2007 1. Avioni Fashions uses the aging method for estimating uncollectible accounts. On February 1, 2005, Accounts Receivable had a balance of $446,341 (debit), and Allowance for Uncollectible Accounts had a balance of $43,000 (credit). During the year, the company had sales on account of $3,724,000, returns and allowances of $63,000, accounts written off of $44,300, and collections from customers of $3,214,000. As past of the year end adjusting procedures on Janauary 31, 2006, the company performs an aging of its accounts and finds: Total $849,041 % Uncollectible Not Due $478,423 2% 1 – 30 $158,278 4 31 – 60 $112,716 20 61 – 90 $58,222 30 91+ days $41,402 50 a. find the end-of-year balances in Accounts Receivable and Allowance for Uncollectible Accounts prior to adjustments. b. Compute the necessary end of year adjustments needed to Accounts Receivable. There are no end of year adjustements made to Accounts Receivable. c. Provide the journal entry needed to record Bad Debt Expense for the fiscal year ended January 31, 2006 . January 31, 2006 Bad Debt Expense 77,910 Allowance for Uncollectible Accounts 77,910
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
2. Resin Binz Inc. is a distributor of industrial polyethylene containers. Due to recent declines in plastic resin costs, the cost of these containers has been reduced.
Background image of page 2
Image of page 3
This is the end of the preview. Sign up to access the rest of the document.

Page1 / 5

ORIE_350_Homework__5_answers - ORIE 350 Homework #5 Due...

This preview shows document pages 1 - 3. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online