What is the appropriate balance for the allowance for, Ask an Expert

Accounting

Huron Corp. operates in an industry that has a high rate of bad debts. On Dec.31, before any year end adjustments, the balance in Huron's Accounts Receivable acct. was $75,000 and the Allowance for Doubtful Acct. had a balance of $37,500. The year-end balance reported in the statement of financial position for the Allowance for Doubtful Acct. will be based on the aging schedule shown below.

DAYS ACCT. OUTSTANDING AMOUNT PROBABILITY OF COLLECTION
less than 16 $450,000 .99
16 to30 150,000 .94
31 to 45 75,000 .80
46 to 60 45,000 .65
61 to 75 15,000 .50
Over 75 15,000 .00

A. What is the appropriate balance for the Allowance for Doubtful Accounts on Dec. 31?

B. Show how accounts receivable would be presented on the balance sheet prepared on Dec. 31.

C. What is the dollar effect of the year-end bad debt adjustment on the before tax income for the year?

View complete question

Accounting Basics, Accounting

Category:- Accounting Basics
Reference No.:- M9413138

Have any Question?Write your Review or question?

Related Questions in Accounting Basics

Question - on december 31 2016 wildhorse co had 1375000

Question - On December 31, 2016, Wildhorse Co. had 1,375,000 shares of $7 par common stock issued and outstanding. At December 31, 2016, stockholders' equity had the amounts listed here. Common Stock$9,625,000Additional ...

Question household budget1create a simple household budget

Question: Household Budget 1. Create a simple household budget, including all income and expenses. There are various templates available online to help you do this. Find one that you feel comfortable with and that fits y ...

Question 1 jazeera publishing house produces consumer

Question: 1. Jazeera Publishing House produces consumer magazines. The house and home division which sells home improvement and home decorating magazines, has seen a 20% reduction in operating income over the past nine m ...

Question - alex acquires a residential rental property on

Question - Alex acquires a residential rental property on June 1, 2018 at a total cost of $423,000. Of this total, $132,000 can be allocated to the value of the land. He immediately spends $42,000 to make major improveme ...

Question - on january 1 eastern college received 1370000

Question - On January 1, Eastern College received $1,370,000 from its students for the spring semester that it recorded in Unearned Tuition and Fees. The term spans four months beginning on January 2 and the college spre ...

Assignment -company name - hewlett packard1 what does your

Assignment - Company name - Hewlett Packard. 1. What does your company produce? 2. Analyze the trends in sales, cost of goods sold, gross profit, and operating income for your manufacturing company. Prepare a trend analy ...

Question - the following data are related to copy paste and

Question - The following data are related to Copy, Paste, and Attach (CPA) Corp's Ending Inventory (Inventory is valued as of December 31 of each year provided, which is CPA Corp's year-end): Year Price Index Inventory a ...

Question - morgan jennings a geography professor invests

Question - Morgan Jennings, a geography professor, invests $99,000 in a parcel of land that is expected to increase in value by 15 percent per year for the next ten years. He will take the proceeds and provide himself wi ...

Question what were the causes of the global financial

Question: What were the causes of the global financial crisis? Has the global financial crisis strengthened the global banking system? 5-6 pages. The response must be typed, single spaced, must be in times new roman font ...

Question - exter co receives terms of 210 n30 on all

Question - Exter Co. receives terms of 2/10, n/30 on all invoices from Garn Industries. On January 15, 2008, Exter purchased items from Garn for $4,200, excluding taxes and shipping costs. What amount would Exter use as ...

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

Recent Questions

Ask Accounting Basics Expert