Gemini Ltd. has accounts receivable of $370,000 and an unadjusted credit balance in its allowance for doubtful
Question:
Gemini Ltd. has accounts receivable of $370,000 and an unadjusted credit balance in its allowance for doubtful accounts of $8,800 at March 31. The company's accounts receivable and percentage estimates of its uncollectible accounts are as follows:
Number of Days _________________________________ Estimated Percentage
__Outstanding ___________ Accounts Receivable ___________Uncollectible
______0-30 ................................ $260,000 ................................. 2%
_____31-60 .............................. 50,400 ................................10%
_____61-90 ............................... 34,000 .................................30%
___Over 90 ............................. 25,600 .................................50%
_____Total ............................... $370,000
Instructions
(a) Prepare an aging schedule to determine the total estimated uncollectibles at March 31.
(b) Prepare the adjusting entry at March 31 to record bad debts expense.
(c) What is the net realizable value of the receivables at March 31?
Accounts ReceivableAccounts 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 Age of Accounts Amount Estimated Uncollectible 03...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
