2024 – At December 31 2013 Hanna Toys had a balance of 82 700 in its Accounts Receivable account and a credit balance
Accouting – 2024
At December 31, 2013, Hanna Toys had a balance of $82,700 in its Accounts Receivable account and a credit balance of $300 in its Allowance for Doubtful Accounts account. The company analyzed and aged its accounts receivable based on the following estimated uncollectible amounts:
|
Age of Accounts
|
Receivables
Balance
|
Estimated % Uncollectible
|
|||
|
Current
|
$43,500
|
0.6%
|
|||
|
31 to 60 day
|
22,100
|
2.2%
|
|||
|
61 to 90 days
|
8,900
|
5.4%
|
|||
|
Over 91 days
|
8,200
|
21.0%
|
|||
|
Total
|
$82,700
|
|
|||
The company bases its provision for credit losses on the aging analysis.
Required:
a. What amount of bad debt expense will Hanna Toys report in its 2013 income statement? Round all your calculations to the nearest dollar.
2024 – At December 31 2013 Hanna Toys had a balance of 82 700 in its Accounts Receivable account and a credit balance.
b. How would Accounts Receivable and the Allowance for Doubtful Accounts appear in its December 31, 2013, balance sheet?
Use the following information to prepare a bank reconciliation for Forrester Company at April 30, 2013:
(1) Cash account balance, April 30, $9,786.40.
(2) Bank statement balance, April 30, $10,758.20.
(3) Service charge on bank statement not recorded in books, $70.00.
(4) Deposits in transit, $1,438.60.
(5) Outstanding checks, April 30, $946.80.
(6) The bank statement included a charge of $466.40 for N. Ryan’s NSF check. The check, returned with the bank statement, had been received by Forrester in payment on account.
(7) The bank collected a $2,000.00 note in April for Forrester. This amount was included in the bank statement, but Forrester had not yet recorded the collection. The bank’s $70.00 service charge for April [see (3) above] included collection charge for the note.
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