From inception of operations to December 31, 2025, Bramble Corporation provided for uncollectible accounts receivable under...
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From inception of operations to December 31, 2025, Bramble Corporation provided for uncollectible accounts receivable under the allowance method. The provisions are recorded, based on analyses of customers with different risk characteristics. Bad debts written off were charged to the allowance account; recoveries of bad debts previously written off were credited to the allowance account, and no year-end adjustments to the allowance account were made. Bramble's usual credit terms are net 30 days. The balance in Allowance for Doubtful Accounts was $132,300 (Cr.) at January 1, 2025. During 2025, credit sales totaled $9,097,900, the provision for doubtful accounts was determined to be $181,958, $90,979 of bad debts were written off, and recoveries of accounts previously written off amounted to $19,730. Bramble installed a computer system in November 2025, and an aging of accounts receivable was prepared for the first time as of December 31, 2025. A summary of the aging is as follows. Classification by Month of Sale November-December 2025 July-October January-June Prior to 1/1/25 Balance in Each Category Estimated % Uncollectible $1,226,200 2% 665,500 10% 422,000 24% 165,000 74% $2,478,700 Based on the review of collectibility of the account balances in the "prior to 1/1/25" aging category, additional receivables totaling $63,300 were written off as of December 31, 2025. The 74% uncollectible estimate applies to the remaining $101,700 in the category. Effective with the year ended December 31, 2025, Bramble adopted a different method for estimating the allowance for doubtful accounts at the amount indicated by the year-end aging analysis of accounts receivable. From inception of operations to December 31, 2025, Bramble Corporation provided for uncollectible accounts receivable under the allowance method. The provisions are recorded, based on analyses of customers with different risk characteristics. Bad debts written off were charged to the allowance account; recoveries of bad debts previously written off were credited to the allowance account, and no year-end adjustments to the allowance account were made. Bramble's usual credit terms are net 30 days. The balance in Allowance for Doubtful Accounts was $132,300 (Cr.) at January 1, 2025. During 2025, credit sales totaled $9,097,900, the provision for doubtful accounts was determined to be $181,958, $90,979 of bad debts were written off, and recoveries of accounts previously written off amounted to $19,730. Bramble installed a computer system in November 2025, and an aging of accounts receivable was prepared for the first time as of December 31, 2025. A summary of the aging is as follows. Classification by Month of Sale November-December 2025 July-October January-June Prior to 1/1/25 Balance in Each Category Estimated % Uncollectible $1,226,200 2% 665,500 10% 422,000 24% 165,000 74% $2,478,700 Based on the review of collectibility of the account balances in the "prior to 1/1/25" aging category, additional receivables totaling $63,300 were written off as of December 31, 2025. The 74% uncollectible estimate applies to the remaining $101,700 in the category. Effective with the year ended December 31, 2025, Bramble adopted a different method for estimating the allowance for doubtful accounts at the amount indicated by the year-end aging analysis of accounts receivable.
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The correct answer is 181958 Explanation The provision for doubtful accounts is the amount set asi... View the full answer
Related Book For
Intermediate Accounting
ISBN: 9781119790976
18th Edition
Authors: Donald E. Kieso, Jerry J. Weygandt, Terry D. Warfield
Posted Date:
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