Question: Preparing an Aging Schedule to Estimate Allowance for Doubtful Accounts A review of open invoices of Sketchers Inc. results in the following report. Invoice Amount

Preparing an Aging Schedule to Estimate Allowance for Doubtful Accounts

A review of open invoices of Sketchers Inc. results in the following report.

Invoice	Amount	Date (Each from this year)
#496	$407.54	5-Dec
#495	609.58	2-Dec
#427	243.70	5-Nov
#100	96.94	28-Jun
#300	659.05	3-Oct
#410	595.78	31-Oct
#204	55.73	25-Aug
#498	676.30	28-Dec
#499	245.46	28-Dec
#487	664.25	28-Nov
#310	184.58	8-Oct
#178	571.74	7-Aug
#497	297.81	5-Dec
#488	127.02	29-Nov
#105	16.65	5-Jul
	$5,452.13

Required

a. Organize the list of open invoices as of December 31 into a table with the following aging categories across the top: (1) less than 30 days, (2) 3160 days, (3) 6090 days, and (4) greater than 90 days.

b. Assume that the company estimates the allowance for doubtful accounts based upon the following percentages applied to the appropriate aging categories: (1) 1% for less than 30 days, (2) 5% for 3160 days, (3) 30% for 6090 days, and (4) 60% for greater than 90 days. What is the ending allowance for doubtful accounts as estimated by the company?

Complete the following table to complete requirements of parts a and b.

Note: For each of the dollar amounts that you enter into the table below, round to two digits after the decimal; for example, enter 1.42 for 1.424, or 1.43 for 1.425.

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!

It is wise to study anatomy alongside with physiology because it makes for more efficient use of students' and teachers' time physiology is only explainable in terms of the underlying anatomy anatomy...

Preparing an Aging Schedule to Estimate Allowance for Doubtful Accounts A review of open invoices of Sketchers Inc, results in the following report. Required a. Organize the list of open invoices as...

Preparing an Aging Schedule to Estimate Allowance for Doubtful Accounts A review of open invoices of Sketchers Inc. results in the following report. Required a. Organize the list of open invoices as...

Preparing an Aging Schedule to Estimate Allowance for Doubtful Accounts A review of open invoices of Sketchers Inc. results in the following report. Date Invoice Amount (Each from this year) #496...

#427 Preparing an Aging Schedule to Estimate Allowance for Doubtful Accounts A review of open invoices of Sketchers Inc. results in the following report. Date Invoice Amount (Each from this year)...

Preparing an Aging Schedule to Estimate Allowance for Doubtful Accounts A review of open invoices of Sketchers Inc. results in the following report. Invoice Amount Date (Each from this year) #496...

Preparing an Aging Schedule to Estimate Allowance for Doubtful Accounts A review of open invoices of Sketchers Inc. results in the following report. . Organize the list of open invoices as of...

A trader shorts 30 3-year bond contracts at 99.075 and the market falls to 99.02 before she sells an additional 30 contracts. The market subsequently rallies to 99.085 at which point she buys 40...

What are merits & demerits of online marketing research? Briefly explain with example.

the costs incurred by a firm that is trying to avoid filing for bankruptcy?

Complete the table with the required information given below: Type of Stress Type of Stress Type of Stress Type of Fault Type of Fault Type of Fault: Type of Boundary Type of Boundary: Type of...

What is the yield to maturity on a 10-year, 9% annual coupon, $1,000 par value bond that sells for $887.00? That sells for $1,134.20? What does a bond selling at a discount or at a premium tell you...

What phase difference between two otherwise identical traveling waves, moving in the same direction along a stretched string, will result in the combined wave having an amplitude 1.6 times that of...

CASE STUDY # 3 History A 27-year-old woman presents with depression, insomnia. increased facial fullness and recent inorease in facial hair (hirsutism). She had also had an episode of depression and...

Eliminate arbitrary functions and hence obtain partial differential equation z =f(x^2+ 2y^2)

also MSE for method 2 (MAD=.118) Following are two weekly orecasts mage by two amerent mercator renumber gans of gasoane, danas, cemance at a roca gasowne son, AINO snown are acum ceman thousands of...

OUTCOME 6 Explain and give examples of diversity management.

1. Here are some myths about employment equity: It leads to hiring unqualified workers. It causes an overnight change in the workforce makeup. It is a plan that would make Calgarys workforce look...

2. Although the process for filing a complaint of discrimination appears clear, many would choose not to do so. List the reasons alleged victims of discrimination in employment might not file a...