Ask Question, Ask an Expert

+1-415-315-9853

info@mywordsolution.com

Ask Accounting Basics Expert

Q1) Arias Company uses aging approach to evaluate bad debt expense.  Balance of each account receivable is aged on basis of three time periods as follows: (1) not yet due $60,000, (2) up to 180 days past due $12,000, and (3) more than 180 days past due $4000. Experience has shown that for each age group average loss rate on the amount of receivables at year end due to non collectability is (1) 3 percent, (2) 15 percent and (3) 35 percent.  At December 31, 2011(end of the current year) Allowance for Doubtful Accounts balance was $200 (credit) before end of period adjusting entry is made.

problems:

1) Create the suitable bad debt expense adjusting entry for year 2011.

2) Illustrate how different accounts related to accounts receivable muts be shown on December 31, 2011 balance sheet.

Accounting Basics, Accounting

  • Category:- Accounting Basics
  • Reference No.:- M920715

Have any Question? 


Related Questions in Accounting Basics

Management accounting - farnsworths fine furniture

Management Accounting - Farnsworth's Fine Furniture Ltd Question 1 - (a) Prepare a new profit statement for Fred, using a variable costing approach (Also known as marginal costing, or the contribution margin approach). Y ...

Bond issuedetermine the valuation of long-term

Bond Issue Determine the valuation of long-term liabilities. Discussion Donald Lennon is the president, founder, and majority owner of Wichita Medical Corporation, an emerging medical technology products company. Wichita ...

Problem - journalize and post the following entries you

Problem - Journalize and post the following entries. You will need to create additional T accounts as needed. Our sales terms are always 3/15 n45 for sales made on account unless stated otherwise. See if you can trace th ...

1 proceeds from an issue of debt securities having stock

1) Proceeds from an issue of debt securities having stock warrants should NOT be allocated between debt and equity features when A. the allocation would result in a discount on the debt security B. the warrants issued wi ...

Nbspexplain brieflya written representationsb internal

Explain briefly (a) written representations, (b) internal control communications, and (c) management letters. In your answer, include the general content of the communication, the parties involved with the communication, ...

1 introductionthis coursework assignment carries 30 of the

1. Introduction This coursework assignment carries 30% of the total of 100% for this Module. It comprises one requirement with one task. It is an individual not a group-based assignment. The task/requirement is detailed ...

Accounting concepts individual problem setshort answer

Accounting Concepts Individual Problem Set Short Answer Questions- 1. True or false? The entity concept tells us that we should not co-mingle resources of one entity with another entity's resources. Explain your answer. ...

Oregon corporation has filed a voluntary petition to

Oregon Corporation has filed a voluntary petition to reorganize under Chapter 11 of the Bankruptcy Reform Act. Its creditors are considering an attempt to force liquidation. The company currently holds cash of $13,000 an ...

Paperprepare an 11- to 15-page paper not including the

Paper Prepare an 11- to 15-page paper (not including the title and reference pages) that assesses a legal/ethical issue or situation relating to a current, previous, or potential future work environment. Use at least 10 ...

Problem 1 - on may 1 2014 abc corporation purchased

Problem 1 - On May 1, 2014, ABC Corporation purchased equipment for $60,000 by issuing a one-year, 4% note payable, with interest to be paid at maturity on May 1, 2015. The company routinely depreciates its equipment ove ...

  • 4,153,160 Questions Asked
  • 13,132 Experts
  • 2,558,936 Questions Answered

Ask Experts for help!!

Looking for Assignment Help?

Start excelling in your Courses, Get help with Assignment

Write us your full requirement for evaluation and you will receive response within 20 minutes turnaround time.

Ask Now Help with Problems, Get a Best Answer

A cola-dispensing machine is set to dispense 9 ounces of

A cola-dispensing machine is set to dispense 9 ounces of cola per cup, with a standard deviation of 1.0 ounce. The manuf

What is marketingbullwhat is marketing think back to your

What is Marketing? • "What is marketing"? Think back to your impressions before you started this class versus how you

Question -your client david smith runs a small it

QUESTION - Your client, David Smith runs a small IT consulting business specialising in computer software and techno

Inspection of a random sample of 22 aircraft showed that 15

Inspection of a random sample of 22 aircraft showed that 15 needed repairs to fix a wiring problem that might compromise

Effective hrmquestionhow can an effective hrm system help

Effective HRM Question How can an effective HRM system help facilitate the achievement of an organization's strate