29 Jun Question Guiltier Corporation uses allowance method to accounts uncollectible accounts receivables. Credit terms for sales is n30 (net is due at 30 days).
Question
Guiltier Corporation uses allowance method to accounts uncollectible accounts receivables. Credit terms for sales is n30 (net is due at 30 days).
Below is the company’s uncollectible policy:
· Monthly provision for uncollectible accounts is 2% of credit sales.
· Write-off of bad debts is debited to allowance for uncollectible accounts.
· If bad debt is recovered after being written off, the amount is credited to allowance for uncollectible accounts.
Below is information about credit sales, bad debt and uncollectible accounts. All accounts are shown in thousands.
· January 1, 2013, balance in allowance for uncollectible accounts was $130.
· Credit sales for the year was $9,000.
· As per policy, monthly provision for uncollectible accounts is 2% of credit sales was made throughout the year.
· Write-off of bad debts was $90.
· Recoveries of accounts previously written off was $15.
Aging Reports of accounts receivable based on months of sales is below. This was prepared on December 30, 2013 (the last day of sale for the year). All accounts are shown in thousands.
Description Balance Estimated % Uncollectible
11/1/13-12/30/13 $1,080 2%
7/1/13 – 10/31/13 650 10%
1/1/2013-6/30/2013 420 25%
12/31/2012 150 80%
Total $2,300
On December 31, 2013, Guiltier Corporation’s accountant wrote off $60 from the 12/31/2012 accounts receivable balance. The estimated percentage uncollectible is applicable to the remaining balance after the write off.
Required:
a. Prepare a schedule as of December 31, 2013 showing the balance in the allowance for uncollectible accounts. Remember to include the write off on this date as described above.
b. Prepare journal-entry for the adjustment to allowance for uncollectible accounts on December 31, 2013.
c. Show how accounts receivables will be shown on Guiltier Corporation’s balance sheet on December 31, 2013.
Our website has a team of professional writers who can help you write any of your homework. They will write your papers from scratch. We also have a team of editors just to make sure all papers are of HIGH QUALITY & PLAGIARISM FREE. To make an Order you only need to click Ask A Question and we will direct you to our Order Page at WriteDemy. Then fill Our Order Form with all your assignment instructions. Select your deadline and pay for your paper. You will get it few hours before your set deadline.
Fill in all the assignment paper details that are required in the order form with the standard information being the page count, deadline, academic level and type of paper. It is advisable to have this information at hand so that you can quickly fill in the necessary information needed in the form for the essay writer to be immediately assigned to your writing project. Make payment for the custom essay order to enable us to assign a suitable writer to your order. Payments are made through Paypal on a secured billing page. Finally, sit back and relax.
About Writedemy
We are a professional paper writing website. If you have searched a question and bumped into our website just know you are in the right place to get help in your coursework. We offer HIGH QUALITY & PLAGIARISM FREE Papers.
How It Works
To make an Order you only need to click on “Order Now” and we will direct you to our Order Page. Fill Our Order Form with all your assignment instructions. Select your deadline and pay for your paper. You will get it few hours before your set deadline.
Are there Discounts?
All new clients are eligible for 20% off in their first Order. Our payment method is safe and secure.