As Perry Materials Supply Was Preparing for the Year-End Close,their-How Much Will the Uncollectible Account Expense for the Year

The Answer of As Perry Materials Supply Was Preparing for the Year-End Close,their-How Much Will the Uncollectible Account Expense for the Year

As Perry Materials Supply Was Preparing for the Year-End Close,their-How Much Will the Uncollectible Account Expense for the Year

The Answer of As Perry Materials Supply Was Preparing for the Year-End Close,their-How Much Will the Uncollectible Account Expense for the Year

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As Perry Materials Supply Was Preparing for the Year-End Close,their

question 49

Multiple Choice

As Perry Materials Supply was preparing for the year-end close,their balances were as follows: $As Perry Materials Supply was preparing for the year-end close,their balances were as follows: Perry Materials uses the aging method and has completed the following analysis of the accounts receivable: \begin{array}{|l|r|r|r|r|r|} \hline\text { Customer } & 1-30 \text { Days } & 31-60 \text { Days } & 61-90 \text { Days } & \begin{array}{c} \text { Over } 90 \\ \text { Days } \end{array} & \text { Total Balance }\\ \hline \text { Johnson } & \$ 4,600 & \$ 3,200 & & & \$ 7,800 \\ \hline \text { Hot Pots, Inc. } & & & 800 & 1,000 & 1,800 \\ \hline \text { Potter } & 40,000 & 550 & & & 40,550 \\ \hline \text { Harrison } & & 3,600 & 900 & & 4,500 \\ \hline \text { Marz } & & & 2,000 & 50 & 2,050 \\ \hline \text { Younger } & 65,000 & & & & 65,000 \\ \hline \text { Merry Maids } & 5,900 & & & & 5,900 \\ \hline \text { Acher } & 12,000 & 6,400 & & & 18,400 \\ \hline \text { Totals } & \$ 127,500 & \$ 13,750 & \$ 3,700 & \$ 1,050 & \$ 146,000 \\ \hline \begin{array}{l} \text { Uncollectible percentage } \end{array} & 2 \% & 10 \% & 20 \% & 40 \% & \\ \hline \begin{array}{l} \text { Estimated uncollectible } \\ \text { amount } \end{array} & \$ 2,550 & \$ 1,375 & \$ 740 & \$ 420 & \$ 5,085 \\ \hline \end{array} -How much will the Uncollectible account expense for the year be? A) $2,550 B) $1,115 C) $5,085 D) $11,285$ Perry Materials uses the aging method and has completed the following analysis of the accounts receivable: $\begin{array}{|l|r|r|r|r|r|}\hline\text { Customer } & 1-30 \text { Days } & 31-60 \text { Days } & 61-90 \text { Days } & \begin{array}{c}\text { Over } 90 \\\text { Days }\end{array} & \text { Total Balance }\\\hline \text { Johnson } & \$ 4,600 & \$ 3,200 & & & \$ 7,800 \\\hline \text { Hot Pots, Inc. } & & & 800 & 1,000 & 1,800 \\\hline \text { Potter } & 40,000 & 550 & & & 40,550 \\\hline \text { Harrison } & & 3,600 & 900 & & 4,500 \\\hline \text { Marz } & & & 2,000 & 50 & 2,050 \\\hline \text { Younger } & 65,000 & & & & 65,000 \\\hline \text { Merry Maids } & 5,900 & & & & 5,900 \\\hline \text { Acher } & 12,000 & 6,400 & & & 18,400 \\\hline \text { Totals } & \$ 127,500 & \$ 13,750 & \$ 3,700 & \$ 1,050 & \$ 146,000 \\\hline \begin{array}{l}\text { Uncollectible percentage }\end{array} & 2 \% & 10 \% & 20 \% & 40 \% & \\\hline \begin{array}{l}\text { Estimated uncollectible } \\\text { amount }\end{array} & \$ 2,550 & \$ 1,375 & \$ 740 & \$ 420 & \$ 5,085 \\\hline\end{array}$

-How much will the Uncollectible account expense for the year be?

Definitions:

Unrealized Gains and Losses

Increases or decreases in the value of investments that have not yet been sold by the holder.

IFRS

International Financial Reporting Standards, a set of accounting standards developed by the International Accounting Standards Board (IASB) that is used globally.

GAAP

The standard set of guidelines for financial accounting that are widely accepted in a specific jurisdiction, known as Generally Accepted Accounting Principles.

Income Statement

A financial document that shows a company's revenue and expenses over a specific period, ending with the net income or loss for that period.