An aging analysis of Reiko Limited's accounts receivable at December 31, 2015 and 2014 showed the following:
Question:
An aging analysis of Reiko Limited's accounts receivable at December 31, 2015 and 2014 showed the following:
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Additional information:
1. At December 31, 2014, the unadjusted balance in Allowance for Doubtful Accounts was a credit of $3,000.
2. In 2015, $28,000 of accounts were written off as uncollectible and $3,000 of accounts previously written off were recovered.
Instructions
(a) Prepare an aging schedule to calculate the estimated uncollectible accounts at December 31, 2014 and 2015. Note that the estimated percentages uncollectible are the same for both years. Comment on the results.
(b) Record the adjusting entry relating to bad debts on December 31, 2014.
(c) Record the write off of uncollectible accounts in 2015.
(d) Record the collection of accounts previously written off in 2015.
(e) Prepare the adjusting entry relating to bad debts on December 31, 2015.
(f) Calculate the net realizable value of Reiko accounts receivable at December 31, 2014 and 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 Total estimated allowance balance at Dec 31 2014 Number of Days Outstanding Accounts Receivable Es...View the full answer
Financial Accounting Tools for Business Decision Making
ISBN: 978-1118644942
6th Canadian edition
Authors: Paul D. Kimmel, Jerry J. Weygandt, Donald E. Kieso, Barbara Trenholm, Wayne Irvine
