Scribd
Upload
11 views2 pages

DAE and Allowances Analysis

This document contains information about allowance for doubtful accounts calculations for three different companies. It provides beginning balances, sales amounts, write-offs, recoveries, and calculations to determine the ending allowance for doubtful accounts balances. The document contains the details needed to calculate the ending net accounts receivable balances for the three companies after considering their estimated uncollectible amounts.

Uploaded by

Jetro Juanta
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
11 views2 pages

DAE and Allowances Analysis

This document contains information about allowance for doubtful accounts calculations for three different companies. It provides beginning balances, sales amounts, write-offs, recoveries, and calculations to determine the ending allowance for doubtful accounts balances. The document contains the details needed to calculate the ending net accounts receivable balances for the three companies after considering their estimated uncollectible amounts.

Uploaded by

Jetro Juanta
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd

PROBLEM 5-17

ALLOWANCE FOR DOUBTFUL


ACCOUNTS
Written-off 200,000 1,000,000 Beginning
100,000 400,000 DAE (Interim)
50,000 Recoveries
1,150,000 #1 End, before adjustments
500,000 #4 Additional DAE
1,650,000

DAE (Interim) 400,000


Additional DAE 500,000
Total DAE 900,000 #3

Aging Balance Uncollectible


0–60 (10%) 6,000,000 600,000
61–180 (20%) 2,000,000 400,000
181–360 (30%) 1,500,000 450,000
over 360 (50%) 400,000 200,000
9,900,000 1,650,000 #2 ADA Required Balance

Accounts Receivables, end 9,900,000


Less: Allowances 1,650,000
Accounts Receivables, net 8,250,000 #5

PROBLEM 5-18

ACCOUNTS RECEIVABLES
Beginning 2,070,000 14,000,000 Collections
2020 Credit sales 15,000,000 310,000 Writeoffs
Recoveries 40,000 40,000 Recoveries
2,760,000

ALLOWANCE FOR DOUBTFUL


ACCOUNTS
Writeoffs 310,000 80,000 Beginning
300,000 #1 DAE (see below)
40,000 Recoveries
110,000 #2 Ending

Accounts Receivables, end 2,760,000


Less: Allowances 110,000
Accounts Receivables, net 2,650,000 #3
Computation of % of ALLOWANCE FOR DOUBTFUL
DAE ACCOUNTS
WriteOffs 2017 260,000 0 Beginning
WriteOffs 2018 295,000 22,000 Recoveries 2017
WriteOffs 2019 300,000 37,000 Recoveries 2018
36,000 Recoveries 2019
760,000 DAE
0 End

DAE 760,000
= 2%
Total credit sales (2017-2019) 38,000,000

2020 DAE 2% x 15,000,000 = 300,000

PROBLEM 5-20

ACCOUNTS RECEIVABLES
Beginning 800,000 15,000 Returns
Gross sales 6,150,000 35,000 Write off, see below
6,020,000 #2 Collections
Ending 880,000

ALLOWANCE FOR DOUBTFUL


ACCOUNTS
Writeoff #1 35,000 15,000 Beginning
30,000 DAE
10,000 Ending

ALLOWANCE FOR SALES


DISCOUNT
Actual returns 15,000 25,000 Beginning
10,000 #3 Estimated Returns
20,000 Ending

Gross sales 6,150,000


Estimated Returns 10,000
Net sales 6,140,000 #4

You might also like