Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. at december 31, 2013, hanna toys had a balance of

At December 31, 2013, Hanna Toys had a balance of $82,700 in its Accounts Receivable...

50.1K

Verified Solution

Question

Accounting

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.

b. How would Accounts Receivable and the Allowance for Doubtful Accounts appear in its December 31, 2013, balance sheet?

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students

Advance Math
1.2K views

Consider n numbers x1, x2, . . . , xn laid out on a circle...

Biology
1.2K views

Consider the following DNA sequences for four different species 1 AATCG 2 TAATG 3 ATACC...

Biology
1.2K views

3 Which statement is false about regulatory enzymes that are controlled allosterically A They are...

Biology
1.2K views

Why is it important to understand and reflect on the themes of a story Themes...

Physics
1.2K views

2 A conveyor belt is moving at a constant speed of 2 m s A...

Physics
1.2K views

Two coherent monochromatic light beams of intensities and 4 are superimposed The maximum and minimum...

Geometry
1.2K views

Determine the remaining sides and angles of the triangle ABC where A 118 45 B...

Accounting
1.2K views

The comparative income statements of McMahon Music Co. follow: (Click the icon to view the...

Accounting
1.2K views

A corporation issues $26,000,000 of 9% bonds to yield interest at the rate of 7%...

Accounting
1.2K views

I am writing my essay on Tesla. Identify changes in monetary policy trends that impacted...

Accounting
1.2K views

Describe the differences that exist in current accounting for original proceeds of the issuance of...

Accounting
1.2K views

What do you and your audit team need to consider when making the preliminary assessment...