Complete Auto Supply distributes new auto parts to local dealers throughout the Southeast. Complete Auto's credit...

 

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Complete Auto Supply distributes new auto parts to local dealers throughout the Southeast. Complete Auto's credit terms are n/30. As of the end of business on February 28, Complete had the following Accounts Receivable outstanding: Customer Name Little Rock Auto Due Date February 10th January 16th November 22nd 1,500 December 21" Amount Fayetteville Auto Supply Texarkana Auto Memphis Auto Repair Jackson Repair & Tow 3,000 a) Determine the number of days past due for each of the preceding accounts as of February 28th. Then, complete an aging of receivables schedule. March 15 $5,000 2,000 4,000 b) Based upon past history of uncollectible accounts, Complete Auto expects to NOT collect 0.5% of not past due accounts, 5% of accounts that are 1-30 days past due, 14% of accounts that are 31-60 days past due, 40% of accounts that are 61-90 days past due, and 80% of accounts that are 91 days past due. Estimate the allowance for doubtful accounts using the aging of receivables schedule you created for part A. c) Assume, Complete Auto has a beginning credit balance of $1,500 in the Allowance for Doubtful Account before adjustment on February 28th. Journalize the adjusting entry for uncollectible accounts as of February 28th Complete Auto Supply distributes new auto parts to local dealers throughout the Southeast. Complete Auto's credit terms are n/30. As of the end of business on February 28, Complete had the following Accounts Receivable outstanding: Customer Name Little Rock Auto Due Date February 10th January 16th November 22nd 1,500 December 21" Amount Fayetteville Auto Supply Texarkana Auto Memphis Auto Repair Jackson Repair & Tow 3,000 a) Determine the number of days past due for each of the preceding accounts as of February 28th. Then, complete an aging of receivables schedule. March 15 $5,000 2,000 4,000 b) Based upon past history of uncollectible accounts, Complete Auto expects to NOT collect 0.5% of not past due accounts, 5% of accounts that are 1-30 days past due, 14% of accounts that are 31-60 days past due, 40% of accounts that are 61-90 days past due, and 80% of accounts that are 91 days past due. Estimate the allowance for doubtful accounts using the aging of receivables schedule you created for part A. c) Assume, Complete Auto has a beginning credit balance of $1,500 in the Allowance for Doubtful Account before adjustment on February 28th. Journalize the adjusting entry for uncollectible accounts as of February 28th

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a Customer Name Due Date Days Past Due Amount Little Rock Auto February 10th 18 5000 Texarkana Auto ... View the full answer