BALANCE SHEET INCOME STATEMENT a. TRANSACTION CASH ASSET NONCASH ASSETS LIABILIT
ID: 2339813 • Letter: B
Question
BALANCE SHEET INCOME STATEMENT a. TRANSACTION CASH ASSET NONCASH ASSETS LIABILITIES CONTRIB CAPITAL EARNED CAPITAL REVENUES EXPENSES NET INCOME 1 2 3 4 5 5-41. Estimating Uncollectible Accounts and Reporting Accounts Receivable Collins Company analyzes its accounts receivable at December 31 and arrives at the age categories below along with the percentages that are estimated as uncollectible. The balance of the allowance for uncollectible accounts is $1,100 on December 31, before any adjustments. LO5 Age Group MBC Accounts Receivable Estimated Loss % .. 40,000 27,000 2g60 61-120 days past due 5 5135 0 25 dF140 10 I 2250 900 ,100 b. Use the financial statement effects template to record Collins' bad debts expense for the year. 9,000 $200,000 Total accounts receivabie. a. What amount of bad debts expense will Collins report in its income statement for the year?5 58 c. What is the balance of accounts receivable on its December 31 balance sheet?Explanation / Answer
Age group
Accounts receivables
Estimated loss
bad debts = accounts receivables*estimated loss
0-30
110000
1%
1100
31-60
40000
2%
800
61-120
27000
5%
1350
121-180
14000
10%
1400
over 180 days past due
9000
25%
2250
total bad debts
6900
less credit balance in allowance for uncollectibleaccounts
1100
bad debts for the year
5800
BALANCE SHEET
INCOME STATEMENT
a.
TRANSACTION
CASH ASSET
NONCASH ASSETS
LIABILITIES
CONTRIB CAPITAL
EARNED CAPITAL
REVENUES
EXPENSES
NET INCOME
1
-5800
-5800
-5800
-5800
2
3
4
5
3-
Balance in Accounts receivables
200000-5800
194200
Age group
Accounts receivables
Estimated loss
bad debts = accounts receivables*estimated loss
0-30
110000
1%
1100
31-60
40000
2%
800
61-120
27000
5%
1350
121-180
14000
10%
1400
over 180 days past due
9000
25%
2250
total bad debts
6900
less credit balance in allowance for uncollectibleaccounts
1100
bad debts for the year
5800
BALANCE SHEET
INCOME STATEMENT
a.
TRANSACTION
CASH ASSET
NONCASH ASSETS
LIABILITIES
CONTRIB CAPITAL
EARNED CAPITAL
REVENUES
EXPENSES
NET INCOME
1
-5800
-5800
-5800
-5800
2
3
4
5
3-
Balance in Accounts receivables
200000-5800
194200
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