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:
Compute the estimated uncollectible accounts at the end of the fiscal year using above rates.
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.
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.
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
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:
Compute the estimated uncollectible accounts at the end of the fiscal using Allowance for Doubtful Account, and record this entry in the general journal,
What is the balance of accounts receivable, net?
