Accounts receivable - Percentage of Sales Method (10 minutes) Coryo Co. has the following information on...

Transcribed Image Text:

Accounts receivable - Percentage of Sales Method (10 minutes) Coryo Co. has the following information on their year end of November 30, 2023: Account Accounts receivable Allowance for doubtful accounts Sales ($25,000 cash sales) Debit $ 8,000 Credit 200 105,000 The Company's Accountant estimates that bad debts will be 1.5% of credit sales. The Company's Accountant also created the following accounts receivable aging schedule: Number of days Amount outstanding receivable Estimated uncollectible 0-30 days 00 $ 5,200 1.0% 31-60 days OOLS 1,400 ald 3.0% 61-90 days 001 a 800 eldes 20.0% 90+ days 002 A 600 ald 50.0% Required: 005.28 a) Prepare the adjustment to allowance for doubtful accounts based on the above information using the percentage of sales method b) Show how accounts receivable, net would be disclosed on the balance sheet 2000 5120 Accounts receivable - Percentage of Sales Method (10 minutes) Coryo Co. has the following information on their year end of November 30, 2023: Account Accounts receivable Allowance for doubtful accounts Sales ($25,000 cash sales) Debit $ 8,000 Credit 200 105,000 The Company's Accountant estimates that bad debts will be 1.5% of credit sales. The Company's Accountant also created the following accounts receivable aging schedule: Number of days Amount outstanding receivable Estimated uncollectible 0-30 days 00 $ 5,200 1.0% 31-60 days OOLS 1,400 ald 3.0% 61-90 days 001 a 800 eldes 20.0% 90+ days 002 A 600 ald 50.0% Required: 005.28 a) Prepare the adjustment to allowance for doubtful accounts based on the above information using the percentage of sales method b) Show how accounts receivable, net would be disclosed on the balance sheet 2000 5120