Question: Eleazar uses the aging method to record bad debt at the end of each fiscal year on December 31. This year he made sales on

Eleazar uses the aging method to record bad debt at the end of each fiscal year on December 31. This year he made sales on account of $100,000, none of which he has collected. He also has outstanding account receivable aged 1-2 years of $20,000 and over 2 years of $5,000. Based on historical data, he estimates that the following receivables are uncollectible:

  • 1% of accounts receivable aged 1 year or less
  • 2.5% of accounts receivable aged 1-2 years
  • 4% of accounts receivable aged 2+ years

The beginning balance in allowance for doubtful accounts is $1,254. Assuming write offs this year totaled $1,188, what is Eleazar's bad debt expense for the year?

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Accounting Questions!

Q:

Two companies compete for a share of the soft drink market. Each worked with an advertising agency in order to develop alternative advertising strategies for the coming year. A variety of television...

Q:

Eleazar uses the aging method to record bad debt at the end of each fiscal year on December 31. This year he made sales on account of $100,000, none of which he has collected. He also has outstanding...

Q:

Eleazar uses the aging method to record bad debt at the end of each fiscal year on December 31 . This year he made sales on account of $100,000, none of which he has collected. He also has...

Q:

Eleazar uses the aging method to record bad debt at the end of each fiscal year on December 31 . This year he made sales on account of $100,000, none of which he has collected. He also has...

Q:

Eleazar uses the aging method to record bad debt at the end of each fiscal year on December 31. This year he made sales on account of $100,000, none of which he has collected. He also has outstanding...

Q:

Eleazar uses the aging method to record bad debt at the end of each fiscal year on December 31. This year he made sales on account of $100,000, none of which he has collected. He also has outstanding...

Q:

1.On Jan. 1, 2011, a company had $260,000 of accounts receivable. During the year the company recorded $735,000 of credit sales and wrote off $42,000 of accounts as uncollectible. If the Dec. 31,...

Q:

Case 2 Chapters 7, 9, 10 a) In 2016 Grindstone Paving incorporated. In 2017, Grindstone Paving decided to expand their operations and start selling products to customers in addition to paving...

Q:

On Jan. 1, 2011, a company had $260,000 of accounts receivable. During the year the company recorded $735,000 of credit sales and wrote off $42,000 of accounts as uncollectible. If the Dec. 31, 2011...

Q:

Oriole Company uses the percentage of sales method to record bad debt expense. It estimates that 2% of net credit sales fall made on account) will become uncollectible Oriole Company reported the...

Q:

2. Solomon Shingles uses the aging method to estimate bad debt expense. At the beginning of the year, the company had an accounts receivable balance of $47,600 anda credit balance in the allowance...

Q:

Assume that at the beginning of the fiscal year, the City of Finch reports the following balances in its accounts for the General Fund: General Fund Beginning Balances: DR CR Cash $ 6,720...

Q:

In recent years, many automatic control systems for guided vehicles in factories have been installed. One system uses a magnetic tape applied to the floor to guide the vehicle along the desired lane...

Q:

Lin is writing a risk management report. Of the major categories of reporting requirements, which one becomes the actual risk response plan? Group of answer choices Documenting and tracking...

Q:

Suppose that given u, Y is Poisson with E(Y | u) = u , where may depend on predictors. Suppose that u is a positive random variable with E(u) = 1 and var(u) = . Show that E(Y) = and var(Y) = + 2...

Q:

The negative binomial distribution is unimodal with a mode at the integer part of (k 1)/k. Show that the mode is 0 when 1, and that when > 1 the mode is still 0 if k

Q:

Consider the loglinear random effects model log[E(Y it | u i )] = x? it ? + z? it u i , where {? i } are independent N(0, ?). Show that this implies the marginal loglinear model with the same fixed...

Q:

If X 2 has an asymptotic chi-squared distribution with fixed df as n , then explain why X 2 /n = o p (1).

Q:

Suppose that T n has a Poisson distribution with mean = n, for fixed > 0. For large n, show that the distribution of log T n is approximately normal with mean log() and variance 1 . [By the...

Q:

Question 1 8 ( 1 point ) Saved Sally believes that there are no actions needed until she receives complaints about someone's performance. Which of the following styles of leadership is Sally...

Q:

Strategic planning at all levels of the organization can be divided into four steps. Which step in the strategic planning process led

Q:

Based on your analysis, which strengths, weaknesses, opportunities, and threats that you identified do you judge most important? Explain.

Q:

Buddy Dog Foods management to change its focus?