Exercise 8-4 (Part Level Submission) Golden Valley Ltd. has an Accounts Receivab

Question

Exercise 8-4 (Part Level Submission) Golden Valley Ltd. has an Accounts Receivable amount of $386,300 and an unadjusted credit balance in Allowance for Doubtful Accounts of $9,400 at March 31. The company's accounts receivable and percentage estimates of its uncollectible accounts are as follows: Number of Days Outstanding 0-30 31-60 61-90 Over 90 Total Accounts Estimated Percentage Receivable $270,000 55,000 37,000 4,300 $386,300 Uncollectible 2% 10% 30% 50% (a) Your answer has been saved and sent for grading. See Gradebook for score details Prepare an aging schedule to determine the total estimated uncollectibles at March 31 Age of Accounts Amount % Estimated Uncollectible 0-30 days 31-60 days 61-90 days Over 90 days $270,000 55,000 37,000 24,300 2% 10% 30% 5500 121 50% 341

Explanation / Answer

Age of Accounts Amount % Estimated Uncollectibles 0-30 days 270000 2% 5400 31-60 days 55000 10% 5500 61-90 days 37000 30% 11100 over 90 days 24300 50% 12150 34150 Adjusting entry: Bad debts expense Account Dr. 24750      Allowance for Doubtful accounts 24750 (for recording the bad debts expense) Note: balance in Allowance for doubtful accounts required 34150 Less: Allowance for doubtful accounts already had 9400 Bad debts expense for the year 24750

Related Questions

Navigate

• Browse (All)
• Browse E
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.