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Estimating Uncollectible Accounts and Reporting Accounts Receivable

Estimating Uncollectible Accounts and Reporting Accounts Receivable
Collins Company analyzes its accounts receivable at December 31, and arrives at the aged categories below along with the percentages that are estimated as uncollectible.

 

Age Group

Accounts

Receivable

Estimated

Loss %

0-30 days past due $110,000 1%
31-60 days past due 40,000 2
61-120 days past due 27,000 5
121-180 days past due 14,000 10
Over 180 days past due 9,000 25
Total accounts receivable $200,000  

 

 

The balance of the allowance for uncollectible accounts is $1,100 on December 31, before any adjustments.

 

(a) What amount of bad debts expense will Collins report in its income statement for the year?
$Answer?


(b) Use the financial statement effects template to record Collin's bad debts expense for the year.

Use negative signs with your answers, when appropriate.

 
Balance Sheet
Transaction Cash Asset +

Noncash

Assets

= Liabilities +

Contributed

Capital

+

Earned

Capital

 
Record bad debts expense Answer
 
  Answer
 
  Answer
 
  Answer
 
  Answer
 
 
 
Income Statement

Revenue

-

Expenses

=

Net Income
Answer
 
  Answer
 
  Answer
 


(c) What is the balance of accounts receivable on it December 31 balance sheet?
$Answer?

 

Sep 22 2020 Read more Less More

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