Problem F. Castro Shoes Company is in the power boat manufacturing
business. As of 2015 September 1, the balance in its Accounts Receivable by
Age account is $156,000. A schedule of accounts receivable by age is as
follows:
Account Balance Current Past Due In Days
1-30 31-60 Over 60
Elson,
Adam,
21,000 850 350 670
Griffin,
Erica
25,690 570 700 550
Castro,
Rod
300 155 70
All other
accounts
109,010 25,000 4,500 3,755 1,567
Totals 156,000 26,575 5,550 4,375 2,226
Use the Following Uncollectible Accounts rates:
Current 1.5%
1-30 days past due 2%
31-60 days past due 10%
Over 60 days past due 21%
Requirements:
1. Compute the estimated uncollectible accounts at the end of the fiscal
year using above rates.
2. The credit balance was = $230 in Allowance for Doubtful Accounts
(December 31, 2015), please calculate the amount of the adjustment
for uncollectable accounts expense. This adjustment should included
as a part of the adjusting entries. Record this entry.
3. Elson Adam (account receivable) did not make a payment on time and
the amount of $670 was classified as uncollectible and written off on
June 15, 2015, please record this journal entry.
4. Please, estimate the uncollectible accounts using percentages of the
total accounts receivable on December 31, 2015. The rate = 3% of the
total total accounts receivable. Record this entry.
1)
Castro Shoes Company
Estimation of Uncollectible Accounts
Over 60 days past due
31-60 days past due
1-30 days past due
Current
Total Estimation of Uncollectible
Accounts
2) Adjustment for Estimated Uncollectible Accounts
Estm. Of Uncollectible Accounts …………………………………………
Less Credit balance ……………………………………………………….
Estimated Uncollectible Accounts After Adjustment…………………….
Castro Shoes Company
General Journal
Date Description Debit Credit
Problem G. Berta Company’s estimates uncollectible accounts at 1.5% of total
net sales. Total net sales for the year were $230,000; receivables at year-end
were $530,000; and the Allowance for Doubtful Accounts had a zero balance.
Requirements:
1. Compute the estimated uncollectible accounts at the end of the fiscal using
Allowance for Doubtful Account, and record this entry in the general journal,
2. What is the balance of accounts receivable, net?