Ask Question, Ask an Expert


Ask Accounting Basics Expert

Q1) Montgomery Burns Company had a $700 credit balance in Allowance for Doubtful Accounts at December 31, 2001, before current years (2001) provision for uncollectible accounts. Aging of accounts receivable revealed  following:

    Estimated Percentage Uncollectible
Current Accounts $120,000 1%
1 -30 days past due 12,000 3%
31 - 60 days past due 10,000 6%
61 - 90 days past due 5,000 12%
Over 90 days past due 8,000 30%
Total Accounts Receivable $155,000

(a) Suppose that company uses percentage of receivables allowance method, make adjusting entry on December 31, 2001, to identify bad debts expenses.

(b) Suppose same facts as above except that Allowance for Doubtful Accounts account had $500 debit balance before current year's provision for uncollectible accounts. Again, make adjusting entry on December 31, 2001, to identify bad debts expenses.

Accounting Basics, Accounting

  • Category:- Accounting Basics
  • Reference No.:- M918498

Have any Question? 

Related Questions in Accounting Basics

Fbl5030 fundamentals of value creation ion business

FBL5030 Fundamentals of Value Creation ion Business Assignment - Accounting Assignment Requirements- 1.  The following is a list of 10 organisations/companies, one of which will be the subject of your analysis. CODE      ...

Pinciples of accounting5-6 pages body of paper only

Pinciples of Accounting 5-6 pages (Body of Paper only) Excluding title page and work cite You will select a company from this list, and you will analyze the company's financial performance, highlighting accounting princi ...

Read the following scenariothomas perdue had built up a

Read the following scenario: Thomas Perdue had built up a successful development company. When he became city commissioner, everyone said it was good to have a businessperson on the commission. They said businesspeople k ...

Business administration managemntamp commercial sciences

BUSINESS ADMINISTRATION, MANAGEMNT& COMMERCIAL SCIENCES ACCOUNTING 512 ASSIGNMENT The purpose of an assignment is to ensure that the Learner is able to: Demonstrate an understanding of accounting principles. Systematical ...

1 what are support events2 what are economic agents3 define

1. What are support events? 2. What are economic agents? 3. Define duality. 4. What is view modeling? 5. What is represented by the labeled lines connecting entities in an REA diagram? 6.Why are journals and ledgers not ...

Accounting management and cost decisionsproduct costing

Accounting, Management, and Cost Decisions Product Costing Systems For the list of product manufacturers below, indicate whether a job-cost system (J) or a process cost system (P) would be most  appropriate. a. Chemicals ...

The assignment will require the group to undertake research

The assignment will require the group to undertake research using the website of the Australian Stock Exchange (ASX) and/or the Company whose industry is Food, Beverage & Tobacco that you have chosen. Elder Ltd is the ap ...

Extraordinary items and ratio analysiscan you please

Extraordinary Items and Ratio Analysis Can you please describe some of the types of current assets and current liabilities? When we are calculating the ratios we need to determine which numbers to use in our calculation. ...

1 match the following definitions to the appropriate

1. Match the following definitions to the appropriate terms. Potential Matches: 1 : Due professional care 2 : Sufficient understanding of internal control 3 : Adequacy of informative disclosures Answer : Standards of fie ...

As an auditor for the cpa firm of hinkson and calvert you

As an auditor for the CPA firm of Hinkson and Calvert, you encounter the following situations in auditing different clients. 1. LR Corporation is a closely held corporation whose stock is not publicly traded. On December ...

  • 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