An aging analysis of Yamoto Limited's accounts receivable at December 31, 2012 and 2011, showed the following:

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An aging analysis of Yamoto Limited's accounts receivable at December 31, 2012 and 2011, showed the following:

An aging analysis of Yamoto Limited's accounts receivable at December

1. At December 31, 2011, the unadjusted balance in Allowance for Doubtful Accounts was a credit of $9,000.
2. In 2012, $42,000 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, 2011 and 2012.Comment on the results.
(b) Record the adjusting entry relating to bad debts on December 31, 2011.
(c) Record the write-off of uncollectible accounts in 2012.
(d) Record the collection of accounts previously written off in 2012.
(e) Prepare the adjusting entry relating to bad debts on December 31, 2012.
(f) Calculate the net realizable value of Yamoto's accounts receivable at December 31, 2011 and 2012.
(g) Do you think that Yamoto was conservative when estimating bad debts expense? Explain.

Accounts Receivable
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...
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Financial Accounting Tools for Business Decision Making

ISBN: 978-1118024492

5th Canadian edition

Authors: Paul D. Kimmel, Jerry J. Weygandt, Donald E. Kieso, Barbara Trenholm, Wayne Irvine

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