An aging analysis of Hake Company's accounts receivable at December 31, 2014 and 2015 showed the following:
Question:
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Additional information:
1. At December 31, 2014, the unadjusted balance in Allowance for Doubtful Accounts was a debit of $3,400.
2. In 2015, $22,300 of accounts was written off as uncollectible and $2,500 of accounts previously written off was collected.
Instructions
(a) Prepare an aging schedule to calculate the estimated uncollectible accounts at December 31, 2014, and at December 31, 2015.
(b) Calculate the net realizable value of Hake's accounts receivable at December 31, 2014, and December 31, 2015.
(c) Record the following:
1. The adjusting entry on December 31, 2014
2. The write off of uncollectible accounts in 2015
3. The collection in 2015 of accounts previously written off
4. The adjusting entry on December 31, 2015
TAKING IT FURTHER
What are the implications of the changes in the age of accounts receivable from 2014 to 2015?
Accounts receivables are debts owed to your company, usually from sales on credit. Accounts receivable is business asset, the sum of the money owed to you by customers who haven’t paid.The standard procedure in business-to-business sales is that... Aging Schedule
Aging schedule is an accounting table that shows a company’s account receivables. It is an summarized presentation of accounts receivable into a separate time brackets that the rank received based upon the days due or the days past due. Generally...
Step by Step Answer:
a 2014 Estimated of Days Outstanding Amount Uncollectible 030 days outstanding 220000 25 5500 3160 d...View the full answer
Accounting Principles Part 2
ISBN: 978-1118306796
6th Canadian edition Volume 1
Authors: Jerry J. Weygandt, Donald E. Kieso, Paul D. Kimmel, Barbara Trenholm, Valerie Kinnear, Joan E. Barlow
