(a) The aging of Torme Designs' accounts receivable is shown below. Calculate the amount of each periodicity range that is deemed to be uncollectible.?? Estimated Uncollectible Accounts Age Interval Balance Percentage Amount Not past due $ 850 , 000 3.50 % 1 − 30 days past due 47 , 500 5.00 31 − 60 days past due 21 , 750 10.00 61 − 90 days past due 11 , 250 20.00 91 − 180 days past due 5 , 065 30.00 181 − 365 days past due 2 , 500 50.00 Over 365 days past due 1 , 145 ‾ 95.00 Total $ 939 , 210 ‾ ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~{ ext { Estimated Uncollectible Accounts } } \\begin{array} { | l | r | c | c | } \hline ext { Age Interval } & ext { Balance } & ext { Percentage } & ext { Amount } \\hline ext { Not past due } & \$ 850,000 & 3.50 \% & \\hline 1 - 30 ext { days past due } & 47,500 & 5.00 & \\hline 31 - 60 ext { days past due } & 21,750 & 10.00 & \\hline 61 - 90 ext { days past due } & 11,250 & 20.00 & \\hline 91 - 180 ext { days past due } & 5,065 & 30.00 & \\hline 181 - 365 ext { days past due } & 2,500 & 50.00 & \\hline ext { Over } 365 ext { days past due } & \underline{1,145} & 95.00 & \\hline ext { Total } & \underline{\mathbf { \$939,210 }} & & \\hline\end{array} Estimated Uncollectible Accounts Age Interval Not past due 1 − 30 days past due 31 − 60 days past due 61 − 90 days past due 91 − 180 days past due 181 − 365 days past due Over 365 days past due Total Balance $850 , 000 47 , 500 21 , 750 11 , 250 5 , 065 2 , 500 1 , 145 $939 , 210 Percentage 3.50% 5.00 10.00 20.00 30.00 50.00 95.00 Amount (b) If Allowance for Doubtful Accounts has a credit balance of $1,135.00, record the adjusting entry forthe bad debt expense for the year.

Question

(a) The aging of Torme Designs' accounts receivable is shown below. Calculate the amount of each periodicity range that is deemed to be uncollectible.??                                                                           Estimated Uncollectible Accounts   Age Interval   Balance   Percentage   Amount   Not past due  $ 850 , 000 3.50 % 1 − 30  days past due  47 , 500 5.00 31 − 60  days past due  21 , 750 10.00 61 − 90  days past due  11 , 250 20.00 91 − 180  days past due  5 , 065 30.00 181 − 365  days past due  2 , 500 50.00  Over  365  days past due  1 , 145 ‾ 95.00  Total  $ 939 , 210 ‾ ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~{ 	ext { Estimated Uncollectible Accounts } } \\begin{array} { | l | r | c | c | } \hline 	ext { Age Interval }  &  	ext { Balance }  &  	ext { Percentage }  &  	ext { Amount } \\hline 	ext { Not past due }  &  \$ 850,000  &  3.50 \%  &  \\hline 1 - 30 	ext { days past due }  &  47,500  &  5.00  &  \\hline 31 - 60 	ext { days past due }  &  21,750  &  10.00  &  \\hline 61 - 90 	ext { days past due }  &  11,250  &  20.00  &  \\hline 91 - 180 	ext { days past due }  &  5,065  &  30.00  &  \\hline 181 - 365 	ext { days past due }  &  2,500  &  50.00  &  \\hline 	ext { Over } 365 	ext { days past due }  &  \underline{1,145}  &  95.00  &  \\hline 	ext { Total }  &  \underline{\mathbf { \$939,210 }}  &   &  \\hline\end{array}                                                                                                                                                Estimated Uncollectible Accounts   Age Interval   Not past due  1 − 30  days past due  31 − 60  days past due  61 − 90  days past due  91 − 180  days past due  181 − 365  days past due   Over  365  days past due   Total  ​  Balance  $850 , 000 47 , 500 21 , 750 11 , 250 5 , 065 2 , 500 1 , 145 ​ $939 , 210 ​ ​  Percentage  3.50% 5.00 10.00 20.00 30.00 50.00 95.00 ​  Amount  ​ ​   (b) If Allowance for Doubtful Accounts has a credit balance of $1,135.00, record the adjusting entry forthe bad debt expense for the year.

milan francisco · Accepted Answer

Final Answer :   (a)   Estimated Uncollectible   Accounts  	ext { (a) } \quad\quad\quad\quad\quad\quad\quad\quad\quad\quad\quad\quad\quad\quad\quad\quad { 	ext { Estimated Uncollectible } } \\quad\quad\quad\quad\quad\quad\quad\quad\quad\quad\quad\quad\quad\quad\quad\quad\quad\quad\quad\quad\quad { 	ext { Accounts } }   (a)   Estimated Uncollectible   Accounts   Age Interval   Balance   Percentage   Amount   Not past due  $ 850 , 000 3.50 % $ 29 , 750.00 1 − 30  days past due  47 , 500 5.00 2 , 375.00 31 − 60  days past due  21 , 750 10.00 2 , 175.00 61 − 90  days past due  11 , 250 20.00 2 , 250.00 91 − 180  days past due  5 , 065 30.00 1 , 519.50 181 − 365  days past due  2 , 500 50.00 1 , 250.00  Over  365  days past due  1 , 145 ‾ 95.00 1 , 087.75 ‾  Total:  $ 939 , 210 ‾ $ 40 , 407.25 ‾ \begin{array} { | l | r | c | r | } \hline 	ext { Age Interval }  &  	ext { Balance }  &  	ext { Percentage }  &  	ext { Amount } \\hline 	ext { Not past due }  &  \$ 850,000  &  3.50 \%  &  \$ 29,750.00 \\hline 1 - 30 	ext { days past due }  &  47,500  &  5.00  &  2,375.00 \\hline 31 - 60 	ext { days past due }  &  21,750  &  10.00  &  2,175.00 \\hline 61 - 90 	ext { days past due }  &  11,250  &  20.00  &  2,250.00 \\hline 91 - 180 	ext { days past due }  &  5,065  &  30.00  &  1,519.50 \\hline 181 - 365 	ext { days past due }  &  2,500  &  50.00  &  1,250.00 \\hline 	ext { Over } 365 	ext { days past due }  &  \underline{1,145}  &  95.00  &  \underline{1,087.75} \\hline 	ext { Total: }  &  \underline{\mathbf { \$ 9 3 9 , 2 1 0 }}  &   &  \underline{\mathbf { \$ 4 0 , 4 0 7 . 2 5 }} \\hline\end{array}  Age Interval   Not past due  1 − 30  days past due  31 − 60  days past due  61 − 90  days past due  91 − 180  days past due  181 − 365  days past due   Over  365  days past due   Total:  ​  Balance  $850 , 000 47 , 500 21 , 750 11 , 250 5 , 065 2 , 500 1 , 145 ​ $939 , 210 ​ ​  Percentage  3.50% 5.00 10.00 20.00 30.00 50.00 95.00 ​  Amount  $29 , 750.00 2 , 375.00 2 , 175.00 2 , 250.00 1 , 519.50 1 , 250.00 1 , 087.75 ​ $40 , 407.25 ​ ​ ​ (b)Dec. 31 Bad Debt Expense               ~~~~~~~~~~~~                          39.272.25Allowance for Doubtful Accounts               ~~~~~~~~~~~~                          39.272.25Calculation of expense:Amount of calculated uncollectible accounts $40,407.25Less credit balance of account                       1 , 135.00 ‾ ~~~~~~~~~~~~~~~~~~~\underline {1,135.00}                                       1 , 135.00 ​ Bad debt expense                                   $   39.272   .25   ‾ ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~\underline { 	extbf{\$ 39.272 .25 }}                                                               $ 39.272 .25  ​

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