acy1111-ch9

acy1111-ch9 - BYP 9-1 (a) FINANCIAL REPORTING PROBLEM SEK...

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© 2009 For Instructor Use Only 9-31 BYP 9-1 FINANCIAL REPORTING PROBLEM (a) SEK COMPANY Accounts Receivable Aging Schedule May 31, 2008 Proportion of Total Amount in Category Probability of Non- Collection Estimated Uncollectible Amount Not yet due Less than 30 days past due 30 to 60 days past due 61 to 120 days past due 121 to 180 days past due Over 180 days past due .620 .200 .090 .050 .025 .015 1.000 $ 868,000 280,000 126,000 70,000 35,000 21,000 $1,400,000 .02 .04 .06 .09 .25 .70 $17,360 11,200 7,560 6,300 8,750 14,700 $65,870 (b) SEK COMPANY Analysis of Allowance for Doubtful Accounts May 31, 2008 June 1, 2007 balance. .................................................... $ 29,500 Bad debts expense accrual ($2,900,000 X .045). ......... 130,500 Balance before write-offs of bad accounts . ................ 160,000 Write-offs of bad accounts . .......................................... 102,000 Balance before year-end adjustment. .......................... 58,000 Estimated uncollectible amount. .................................. 65,870
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This note was uploaded on 02/04/2012 for the course ACCT 2111 taught by Professor Eric during the Spring '11 term at CUHK.

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acy1111-ch9 - BYP 9-1 (a) FINANCIAL REPORTING PROBLEM SEK...

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