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Sania's Sports Supplies reports the following analysis of potential losses in its accounts receivable: Age Past Due Receivable Balance Estimated Loss 0 - 30 days past due $70,000 0.5% 31 - 60 days past due $45,000 2.5% 61 - 90 days past due $30,000 10.0% Over 90 days past due $5,000 95.0% Total $150,000 The balance of Allowance for Uncollectible Accounts is a credit of $500 on December 31, 2021 prior to adjustments.Answer the following question(s) by filling in the blanks. Do not include any symbols besides decimals in your answers (do not input commas). A. Compute bad debt expense for 2021.$
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The task is to compute the bad debt expense for 2021 using the aging of accounts receivable data and the existing allowance balance.
First, determine the estimated uncollectible amount for each age category by applying the given loss percentages to ......Login to view full explanationLog in for full answers
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Benson Company estimates its uncollectible accounts by aging its accounts receivable and applying percentages to various aged categories of accounts. Benson computes a total of $1,800 in estimated uncollectible accounts as of December 31. Its Accounts Receivable account has a balance of $56,400 and its Allowance for Doubtful Accounts has a balance of $300 before adjustment at December 31. How much bad debt expense will Benson report in the current year?
Calistoga Produce estimates bad debt expense at 0.60% of credit sales. The company reported accounts receivable and allowance for uncollectible accounts of $481,000 and $1,520 respectively, at December 31, 2026. During 2027, Calistoga's credit sales and collections were $315,000 and $311,000, respectively, and $1,860 in accounts receivable were written off. Calistoga's 2027 bad debt expense is:
Geller Company analyzes its accounts receivable at December 31, 2019, and arrives at the aged categories below along with the percentages that are estimated as uncollectible. Age Group Accounts Receivable Estimated Loss Current (not past due) $750,000 0.5% 1 - 30 days past due $270,000 1% 31 - 60 days past due $60,000 2% 61 - 120 days past due $33,000 5% 121 - 180 days past due $18,000 10% Over 180 days past due $12,000 25% Total accounts receivable $1,143,000 At the beginning of 2019, there was a credit balance of $13,050 in the Allowance for Uncollectible Accounts. During the year, Geller company wrote off $15,850 in receivables as uncollectible.What will Geller report for its 2019 Bad Debt Expense?$
Geller Company analyzes its accounts receivable at December 31, 2019, and arrives at the aged categories below along with the percentages that are estimated as uncollectible. Age Group Accounts Receivable Estimated Loss Current (not past due) $750,000 0.5% 1 - 30 days past due $270,000 1% 31 - 60 days past due $60,000 2% 61 - 120 days past due $33,000 5% 121 - 180 days past due $18,000 10% Over 180 days past due $12,000 25% Total accounts receivable $1,143,000 At the beginning of 2019, there was a credit balance of $13,050 in the Allowance for Uncollectible Accounts. During the year, Geller company wrote off $17,650 in receivables as uncollectible.What will Geller report for its 2019 Bad Debt Expense?$
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