Remaining Time: 56 minutes, 49 seconds. Question Completion Status The Ritchie C
ID: 2526567 • Letter: R
Question
Remaining Time: 56 minutes, 49 seconds. Question Completion Status The Ritchie Company gathered the following information pertaining to its year ended December 31, 2017, prior to any adjustments: et credit sales for the year $780 ts receivable, Dec. 3t, 2017 170,000 for doubtful accounts, Dec 31, 2017 3,200 Cr Aging of accounts receivable at December 31, 2017 1-30 days 31-60 days 61-90 days Over 90 days $95,000 23 14 Refer to the Table. Assume Ritchie uses the aging-of accounts- receivable method for ts will be aged as follows: 296 for 1-30 days: 4% for 31 60 days: 10% for 61-90 days; and 25% for over 90 days. The balance in allowance for the adjusting entry for uncollectible accounts will be Cliok Save and Submit to save and submit, Click Save All Ansuers to sape ll ansExplanation / Answer
Answer =1 CALCULATION OF PROVISION OF BAD DEBTS FOR THE YEAR END Age Group Amount % Expense Value 1-30 Days $ 95,000 2.0% $ 1,900 31-60 Days $ 38,000 4.00% $ 1,520 61-90 Days $ 23,000 10.00% $ 2,300 Over 90 Days $ 14,000 25.0% $ 3,500 Total for Bad Debts Provision of Expenses $ 1,70,000 $ 9,220 Allowance for Doubtfull Debts (Opening Bal.) $ 3,200 Credit Add: Allowance for provission for doubtfull debts for the year $ 9,220 Credit Toal Balance $ 12,420 Account receivable Balance as on December 31, 2017 = $ 1,70,000 LEsS: Allowance for Doubtful Debts = $ 12,420 Net Balance in account receivable $ 1,57,580 Answer =Balance in Provission allowance for doubtfull account $ 12,420 Answer =2 (Question 5) Account receivable Balance as on December 31, 2014 = $ 1,05,460 LEsS: Allowance for Doubtful Debts = $ 3,200 Net Balance in account receivable $ 1,02,260 Answer = Option 2 = $ 102,260 Note: As per chegg answering guideline we have to answer only first question. (Solved 2)