ButovaS_P9-4B

ButovaS_P9-4B - It is ensure that company state receivables...

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560 Name Svetlana Butova Problem 9-4B Section Date 7/22/2008 Aging Accounts Receivable (a) Number of Days Outstanding Total 0 - 30 31 - 60 61 - 90 91 - 120 Over 120 1 Accounts receivable $260,000 $100,000 $60,000 $50,000 $30,000 $20,000 1 2 2 3 % uncollectible 1% 5% 7.50% 10% 15% 3 4 4 5 Estimated Bad Debts 13,750 1,000 3,000 3,750 3,000 3,000 5
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561 Name Svetlana Butova Problem 9-4B Conclu Section Date 7/22/2008 Aging Accounts Receiva Date Account Titles Debit Credit 1 (b) Bad Debts Expense 23,750 2 Allowance for Doubtful Accounts 23,750 3 (13,750 + 10,000) 4 (c ) Allowance for Doubtful Accounts 2,000 5 Accounts Receivable 2,000 6 7 (d) Accounts Receivable 1,000 8 Allowance for Doubtful Accounts 1,000 9 10 Cash 1,000 11 Accounts Receivable 1,000 12 13 14 15 (e) The allowance method of bad debts estimating uncollectible accounts at the end of each period. This provide better matching on the incom statement.
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Unformatted text preview: It is ensure that company state receivables on the balance sheet at the cash (net) realizable value. It i 1 And it is exclude amount that the company estimates it will not collect. 2 This method reduce receivables in the balance sheet by the estimated uncollectible receivables. 3 GAAP requires the allowance method for financial reports. 4 This method includes: 5 estimate uncollectible accounts receivable and match this expence gainst revenue in the sam debi estimate uncollectibles to Bad Debts Expense and credit Allowance for Doubtful Accoun write off the account, debit actual uncollectibles to Allowance for Doubtful Account and credi 561 561 uded vable 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 is tha 1 2 3 4 5 nt at it to A 561...
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ButovaS_P9-4B - It is ensure that company state receivables...

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