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    KatieEighties's Avatar
    KatieEighties Posts: 15, Reputation: 1
    New Member
     
    #1

    Mar 16, 2007, 08:49 PM
    Accounts Receivables
    Galenti Company has accounts receivable of $92,500 at March 31, 2005. An analysis of the accounts shows these amounts.

    Balance, March 31
    Month of Sale 2005 2004
    March $65,000 $75,000
    February 12,600 8,000
    Dec. and Jan. 8,500 2,400
    Nov. and Oct. 6,400 1,100
    $92,500 $86,500

    Credit terms are 2/10, n/30. At March 31, 2005, there is a $2,200 credit balance in allowance for doubtful accounts prior to adjustment. The company uses the percentage of receivables basis for estimating uncollectible accounts. The company's estimates of bad debts are as follows.

    Age of accounts Estimated % Uncollectible
    Current 2%
    1-30 days past due 7%
    31-90 days past due 30%
    Over 90 days 50%

    Instructions:
    1-Determine the total estimated uncollectibles.
    2-Prepare the adjusting entry at March 31, 2005, to record bad debts expense.
    3-Discuss the implications of the changes in the aging schedule from 2004 to 2005.
    Unmarked's Avatar
    Unmarked Posts: 2, Reputation: 1
    New Member
     
    #2

    Apr 20, 2008, 11:45 AM
    Galenti Company has accounts receivable of $92,500 at March 31, 2005. An analysis of the accounts shows these amounts.

    Balance, March 31
    Month of Sale 2005 2004
    March $65,000 $75,000
    February 12,600 8,000
    Dec. and Jan. 8,500 2,400
    Nov. and Oct. 6,400 1,100
    $92,500 $86,500

    Credit terms are 2/10, n/30. At March 31, 2005, there is a $2,200 credit balance in allowance for doubtful accounts prior to adjustment. The company uses the percentage of receivables basis for estimating uncollectible accounts. The company's estimates of bad debts are as follows.

    Age of accounts Estimated % Uncollectible
    Current 2%
    1-30 days past due 7%
    31-90 days past due 30%
    Over 90 days 50%

    Instructions:
    1-Determine the total estimated uncollectibles.
    2-Prepare the adjusting entry at March 31, 2005, to record bad debts expense.
    3-Discuss the implications of the changes in the aging schedule from 2004 to 2005.
    myherrera's Avatar
    myherrera Posts: 4, Reputation: 1
    New Member
     
    #3

    Jan 24, 2010, 01:54 PM
    [QUOTE=Unmarked;999706]Galenti Company has accounts receivable of $92,500 at March 31, 2005. An analysis of the accounts shows these amounts.

    Balance, March 31
    Month of Sale 2005 2004
    March $65,000 $75,000
    February 12,600 8,000
    Dec. and Jan. 8,500 2,400
    Nov. and Oct. 6,400 1,100
    $92,500 $86,500

    Credit terms are 2/10, n/30. At March 31, 2005, there is a $2,200 credit balance in allowance for doubtful accounts prior to adjustment. The company uses the percentage of receivables basis for estimating uncollectible accounts. The company's estimates of bad debts are as follows.

    Age of accounts Estimated % Uncollectible
    Current 2%
    1-30 days past due 7%
    31-90 days past due 30%
    Over 90 days 50%

    Instructions:
    1-Determine the total estimated uncollectibles.
    2-Prepare the adjusting entry at March 31, 2005, to record bad debts expense.
    3-Discuss the implications of the changes in the aging schedule from 2004 to 2005.
    morgaine300's Avatar
    morgaine300 Posts: 6,561, Reputation: 276
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    #4

    Jan 26, 2010, 03:56 AM

    Please see the guidelines for posting homework problems:
    https://www.askmehelpdesk.com/financ...-b-u-font.html

    Also please always start your own thread instead of tagging onto others.

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