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Accouting 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|
|Estimated % Uncollectible|
|31 to 60 day||22,100||2.2%|
|61 to 90 days||8,900||5.4%|
|Over 91 days|| 8,200||21.0%|
The company bases its provision for credit losses on the aging analysis.
- What amount of bad debt expense will Hanna Toys report in its 2013 income statement? Round all your calculations to the nearest dollar.
- 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.