Chap009_Ex

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Unformatted text preview: es the percent of accounts receivable method to estimate bad debts. method to estimate bad debts. On December 31, 2011, itithas outstanding accounts receivable of $53,000, and ititestimates On December 31, 2011, has outstanding accounts receivable of $53,000, and estimates that 4% will be uncollectible. that 4% will be uncollectible. Prepare the adjusting entry to record bad debts expense for year 2011 under the Prepare the adjusting entry to record bad debts expense for year 2011 under the aassumptionthat the Allowance for Doubtful Accounts has: ssumption that the Allowance for Doubtful Accounts has: (a) aa$915 credit balance before the adjustment, and (a) $915 credit balance before the adjustment, and (b) aa$1,332 debit balance before the adjustment. (b) $1,332 debit balance before the adjustment. Percent of Accounts Receivable Method Percent of Accounts Receivable Method Percent ( Aging of Accounts Receivable Aging of Accounts Receivable Aging •• In-Class Exercise:: In-Class Exercise Exercise No. Exercise No. 9-6 9-6 Page Page 379 379 Aging of Accounts Receivable Aging of Accounts Receivable Method Method Aging of Accounts Receivable Method Aging of Accounts Receivable Method Exercise 9-6 (Aging of Receivables Method) Exercise 9-6 (Aging of Receivables Method) Hecter Company estimates uncollectible accounts using the allowance method at Hecter Company estimates uncollectible accounts using the allowance method at December 31. ItItprepared the following aging of receivables analysis. December 31. prepared the following aging of receivables analysis. Days Pas Due Days Pas Due TTotal otal 00 11to 30 to 30 31 to 60 61 to 90 Over 90 31 to 60 61 to 90 Over 90 Accounts receivable……190,000 $132,000 $30,000 $12,000 $6,000 Accounts receivable……190,000 $132,000 $30,000 $12,000 $6,000 $10,000 $10,000 Percent uncollectible….. 1% 2% 4% 7% 12% Percent uncollectible….. 1% 2% 4% 7% 12% (a) Estimate the balance of the Allowance for Doubtful Accounts using the aging of (a) Estimate the balance of the Allowance for Doubtful Accounts using the aging of aaccountsreceiv...
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This note was uploaded on 01/22/2014 for the course ACG 2001 taught by Professor Butler during the Winter '10 term at Broward College.

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