Allowance Method for Doubtful Accounts Averys All-Natural Company supplies wigs and hair care products to beauty...

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Allowance Method for Doubtful Accounts Averys All-Natural Company supplies wigs and hair care products to beauty salons throughout Texas and the Southwest. The accounts receivable clerk for Averys All-Natural prepared the following aging-of-receivables schedule as of the end of business on December 31, 2017: Days Past Days Past Days Past Due 31-60 Not Past Customer Balance Due Due 1-30 AAA Beauty 32,500 32,500 Amelia's Wigs 4,150 4,150 Days Past Days Past Due 61-90 Due 91-120 Due Over 120 Zim's Beauty 1,650 1,650 Totals 1,125,000 750,000 195,000 75,000 52,000 22,000 31,000 Averys All-Natural Company has a past history of uncollectible accounts by age category, as follows: Age Class Percent Uncollectible Not past due 1% 1-30 days past due 3 31-60 days past due 7 61-90 days past due 16 91-120 days past due 40 Over 120 days past due Instructions: 90 1. Estimate the allowance for doubtful accounts, based on the aging-of-receivables schedule. 2. Assume that the allowance for doubtful accounts for Averys All-Natural Company has a negative balance of $(2,250) before adjustment on December 31, 2017. Illustrate the effect on the accounts and financial statements of the adjustment for uncollectible accounts. If no account or activity is affected, select "No effect" from the dropdown and leave the corresponding number entry box blank. Enter account decreases and cash outflows as negative amounts. Assets 2017 December 31 Statement of Cash Flows Balance Sheet Assets Liabilities Stockholders' Equity Income Statement 3. Assume that on March 4, 2018, Averys All-Natural wrote off the $2,875 account of Superior Images as uncollectible. Illustrate the effect on the accounts and financial statements of the write-off of the Superior Images account. If no account or activity is affected, select "No effect" from the dropdown and leave the corresponding number entry box blank. Enter account decreases and cash outflows as negative amounts. Assets Balance Sheet Assets Liabilities Stockholders' Equity 20Y8 March 4 Statement of Cash Flows Income Statement Allowance Method for Doubtful Accounts Averys All-Natural Company supplies wigs and hair care products to beauty salons throughout Texas and the Southwest. The accounts receivable clerk for Averys All-Natural prepared the following aging-of-receivables schedule as of the end of business on December 31, 2017: Days Past Days Past Days Past Due 31-60 Not Past Customer Balance Due Due 1-30 AAA Beauty 32,500 32,500 Amelia's Wigs 4,150 4,150 Days Past Days Past Due 61-90 Due 91-120 Due Over 120 Zim's Beauty 1,650 1,650 Totals 1,125,000 750,000 195,000 75,000 52,000 22,000 31,000 Averys All-Natural Company has a past history of uncollectible accounts by age category, as follows: Age Class Percent Uncollectible Not past due 1% 1-30 days past due 3 31-60 days past due 7 61-90 days past due 16 91-120 days past due 40 Over 120 days past due Instructions: 90 1. Estimate the allowance for doubtful accounts, based on the aging-of-receivables schedule. 2. Assume that the allowance for doubtful accounts for Averys All-Natural Company has a negative balance of $(2,250) before adjustment on December 31, 2017. Illustrate the effect on the accounts and financial statements of the adjustment for uncollectible accounts. If no account or activity is affected, select "No effect" from the dropdown and leave the corresponding number entry box blank. Enter account decreases and cash outflows as negative amounts. Assets 2017 December 31 Statement of Cash Flows Balance Sheet Assets Liabilities Stockholders' Equity Income Statement 3. Assume that on March 4, 2018, Averys All-Natural wrote off the $2,875 account of Superior Images as uncollectible. Illustrate the effect on the accounts and financial statements of the write-off of the Superior Images account. If no account or activity is affected, select "No effect" from the dropdown and leave the corresponding number entry box blank. Enter account decreases and cash outflows as negative amounts. Assets Balance Sheet Assets Liabilities Stockholders' Equity 20Y8 March 4 Statement of Cash Flows Income Statement