Collins Company analyzes its accounts receivable at December 31 and arrives at the age categories below...
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Collins Company analyzes its accounts receivable at December 31 and arrives at the age categories below along with the percentages that are estimated as uncollectible. The balance of the allowance for uncollect- ible accounts is $1,100 on December 31, before any adjustments. Age Group Accounts Receivable Estimated Loss % 0-30 days past due .. 31-60 days past due . 61-120 days past due 121-180 days past due ... Over 180 days past due ... Total accounts receivable. . . . . . . . ... $110,000 1% 40,000 2 27,000 5 14,000 10 9,000 $200,000 25 a. What amount of bad debts expense will Collins report in its income statement for the year? b.Use the financial statement effects template to record Collins' bad debts expense for the year. c. What is the balance of accounts receivable on its December 31 balance sheet? Collins Company analyzes its accounts receivable at December 31 and arrives at the age categories below along with the percentages that are estimated as uncollectible. The balance of the allowance for uncollect- ible accounts is $1,100 on December 31, before any adjustments. Age Group Accounts Receivable Estimated Loss % 0-30 days past due .. 31-60 days past due . 61-120 days past due 121-180 days past due ... Over 180 days past due ... Total accounts receivable. . . . . . . . ... $110,000 1% 40,000 2 27,000 5 14,000 10 9,000 $200,000 25 a. What amount of bad debts expense will Collins report in its income statement for the year? b.Use the financial statement effects template to record Collins' bad debts expense for the year. c. What is the balance of accounts receivable on its December 31 balance sheet?
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Related Book For
Financial Accounting
ISBN: 9781618533111
6th Edition
Authors: Michelle L. Hanlon, Robert P. Magee, Glenn M. Pfeiffer, Thomas R. Dyckman
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