At 31 December 20X9, the end of the annual reporting period, the accounts of Huron Company showed

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At 31 December 20X9, the end of the annual reporting period, the accounts of Huron Company showed the following:

a. Sales revenue for 20X9, $ 2,950,000, of which one- quarter was on credit.

b. Allowance for doubtful accounts, balance 1 January 20X9, $ 22,700 credit.

c. Accounts receivable, balance 31 December 20X9 (prior to any write- offs of uncollectible accounts during 20X9), $ 383,400.

d. Uncollectible accounts to be written of, 31 December 20X9, $ 19,800. These accounts are all in the “past due over 90 days” category.

e. Aging schedule at 31 December 20X9, showing the following breakdown of accounts receivable ( prior to any write- offs of uncollectible accounts during 20X9):

Status                          Amount

Not past due ............$ 210,800

Past due 1– 60 days .........60,000

Past due over 60 days......... 89,100

Past due over 90 days .........23,500


Required:

1. Give the 20X9 entry to write of the uncollectible accounts.

2. Give the 20X9 adjusting entry to record bad debt expense for each of the following independent assumptions concerning bad debt loss rates:

a. On credit sales, 1.8%.

b. On total receivables at year- end ( after write- of ), 4.2%.

c. On aging schedule: not past due, 0.8%; past due 1– 60 days, 1.8%; past due over 60 days, 11%, and past due over 90 days, 80%.

3. Show the amount that would be reported on the 20X9 statement of financial position relating to net accounts receivable for each assumption.


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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Related Book For  answer-question

Intermediate Accounting

ISBN: 978-0071339476

Volume 1, 6th Edition

Authors: Beechy Thomas, Conrod Joan, Farrell Elizabeth, McLeod Dick I

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