Mercy Inc. uses the Aging of Accounts Receivable method for estimating uncollect

Question

Mercy Inc. uses the Aging of Accounts Receivable method for estimating uncollectible accounts. The accounting records show the following information at the end of the year: 30. umber of Days Unpaid 61 -90 Over 90 7,200 0-30 31 60 Total 616,60 Total Accounts Receivable stimated % Uncollectible stimated Amount Uncollectible 10% 20% 35% 5% 12,830 If the unadjusted balance of the Allowance for Doubtful Accounts is a credit balance in the amount of $48,000 at the end of the year, what would be the amount of the adjustment for bad debts? A. $28,710 B. $76,710 C. $48,000 D. $124,710 E $19,290 31. Wechsler Company uses the aging of accounts receivable method. The company performed an aging of accounts receivable on December 31 and gathered the following information: Accounts receivable $595,000 76,000 85,000 Unadjusted Credit balance in Allowance for Doubtful Accounts Estimated Uncollectible Accounts Receivable per aging schedule What is the amount of Net Accounts Receivable that will be reported on the balance sheet at December 312 A. $519,000 B. $425,000 C. $510,000 D. $586,000 E. $138,300 32. Total uncollectible accounts receivable at the end of the year are estimated to be $28,000 based on an aging of accounts receivable. If the balance in the Allowance for Doubtful Accounts is an $8,800 debit before adjustment, what is current year's Bad Debt Expense? A. $36,800. B. $28,000. C. $19,200. D. $8,800 10

Explanation / Answer

30..total estimate amount uncollectible = 12830 + 18200 + 22160+23520 = 76710

76710 + cedit balance of allowance for doubt ful account 48000 = 28710

so answer is A.$28710

31..

account receivable 595000- estimated uncollectible account receivable 85000 = 510000

answer is C $510000

32.. 28000+ 8800 = 36800

so answer is A.$36800

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