question archive The schedule of accounts receivable by age, shown below, was prepared for the Lucero Company at the end of the firm's fiscal year on December 31, 20X1: LUCERO COMPANY Schedule of Accounts Receivable by Age December 31, 20x1 Past Due-Days Account Balance Current 1-30 31-60 Over 60 Adson, Paul $ 830
The schedule of accounts receivable by age, shown below, was prepared for the Lucero Company at the end of the firm's fiscal year on December 31, 20X1: LUCERO COMPANY Schedule of Accounts Receivable by Age December 31, 20x1 Past Due-Days Account Balance Current 1-30 31-60 Over 60 Adson, Paul $ 830
Subject:BusinessPrice: Bought3
The schedule of accounts receivable by age, shown below, was prepared for the Lucero Company at the end of the firm's fiscal year on December 31, 20X1: LUCERO COMPANY Schedule of Accounts Receivable by Age December 31, 20x1 Past Due-Days Account Balance Current 1-30 31-60 Over 60 Adson, Paul $ 830.00 $ 830.00 Allen, Alfred 960.00 $ 680.00 $ 280.00 Ash, John 496.00 $ 496.00 Bae, John 240.00 240.00 Barker, Kelsie 140.00 92.00 48.00 Bentley, Maggie 538.00 210.00 240.00 88.00 Blair, Herman 112.00 72.00 40.00 (All other accts.) 51,084.00 40,628 5,032.00 3,560.00 1,864.00 Totals $ 54,400.00 $ 42,000.00 $6,000.00 $4,000.00 $2,400.00 Required: 1. Compute the estimated uncollectible accounts at the end of the year using the following rates: Current 1–30 days past due 31-60 days past due Over 60 days past due 39 5% 88 206 2. As of December 31, 20X1, there is a credit balance of $288 in Allowance for Doubtful Accounts. Compute the amount of the adjustment for uncollectible accounts expense that must be made as part of the adjusting entries. 3. Prepare a journal entry to record the adjustment for the estimated losses. Use Uncollectible Accounts Expense and Allowance for Doubtful Accounts. 4. On May 10, 20X2, the $496 account receivable of John Ash was recognized as uncollectible. Prepare a journal entry to record this transaction. 5. On June 12, 20X2, a check for $280 was received from Zeke Martin to apply to his account, which had been written off on November 8, 20X1, as uncollectible. Record the reversal of the previous write-off in the general journal. The cash obtained has already been entered in the cash receipts journal. 6. Suppose that instead of aging the accounts receivable, the company estimated the uncollectible accounts to be 5.0 percent of the total accounts receivable on December 31, 20X1. Give the general journal entry to record the adjustment for estimated losses from uncollectible accounts. Assume that Allowance for Doubtful Accounts has a credit balance of $288 before the adjusting entry. Analyze: What impact would the change in estimation method described in item 6 have on the net income for fiscal 20X1? Complete this question by entering your answers in the tabs below. Req 1 1 Req 2 2 Req3 Req 4 Req 5 Req 6 Analyze Compute the estimated uncollectible accounts at the end of the year using the following rates: Over 60 days past due 31-60 days past due 1-30 days past due Current Total estimated uncollectible accounts $ 0 0 Reg 1 Req 2 >
