Problem 7-4 From its rst day of operations to December 31, 2017, Ayayai Corp. provided for uncoliectible accounts receivable under the allowance…

  • Attachment 1
  • Attachment 2
  • Attachment 3

Problem 7-4 From its first day of operations to December 31, 2017, Ayayai Corp. provided for uncoliectible accounts receivable under the allowance method: entries for bad debt expense were made monthly basedon 2.00% of credit sales, bad debts that were written off were charged to the allowance account, recoveries of bad debts previously written ofi were credited to the allowance account, and no year-end adjustments were made to the allowance account. Avayai’s usual credit terms were net 30 days, and remain unchanged. The balance in Allowance for Doubtful Accounts was $184,200 at January 1, 201?. During 201?, credit sales totalled $9.25 million, interim entries for bad debt expense were based on 2.00% of creditsales, $94,600 of bad debts were written off, and recoveries of accounts previously written off amounted to $15,100. Ayayai upgraded its computer facility in November 2017, and an aging of accounts receivable was prepared for the first time as at December 31, 2017. A summary of the aging analysis follows: Classification by Month ofSale Balance in Each Category Estimated % uncolleclible NovemberiDecember 2017 $1,074,000 8% July-October 2017 656,000 12.6% January-June 201? 421,500 21% Before January 1, 2017 141,000 58%$2,292,500 Based on a review of how collectible the accounts really are in the “Before January 1, 2017″ aging category, additional receivables totalling $69,400 were written off as at December 31, 2017. The 58%uncollectible estimate therefore only applies to the remaining $71,600 in the category. Finally, beginning with the year ended December 31, 201?, Ayayai adopted a new accounting method forestimating the allowance for doubtful accounts: it now uses the amount indicated by the year-end aging analysis of accounts receivable.

Show more







Calculate Your Essay Price
(550 words)

Approximate price: $22

Calculate the price of your order

550 words
We'll send you the first draft for approval by September 11, 2018 at 10:52 AM
Total price:
$26
The price is based on these factors:
Academic level
Number of pages
Urgency
Basic features
  • Free title page and bibliography
  • Unlimited revisions
  • Plagiarism-free guarantee
  • Money-back guarantee
  • 24/7 support
On-demand options
  • Writer’s samples
  • Part-by-part delivery
  • Overnight delivery
  • Copies of used sources
  • Expert Proofreading
Paper format
  • 275 words per page
  • 12 pt Arial/Times New Roman
  • Double line spacing
  • Any citation style (APA, MLA, Chicago/Turabian, Harvard)

Our guarantees

Delivering a high-quality product at a reasonable price is not enough anymore.
That’s why we have developed 5 beneficial guarantees that will make your experience with our service enjoyable, easy, and safe.

Money-back guarantee

You have to be 100% sure of the quality of your product to give a money-back guarantee. This describes us perfectly. Make sure that this guarantee is totally transparent.

Read more

Zero-plagiarism guarantee

Each paper is composed from scratch, according to your instructions. It is then checked by our plagiarism-detection software. There is no gap where plagiarism could squeeze in.

Read more

Free-revision policy

Thanks to our free revisions, there is no way for you to be unsatisfied. We will work on your paper until you are completely happy with the result.

Read more

Privacy policy

Your email is safe, as we store it according to international data protection rules. Your bank details are secure, as we use only reliable payment systems.

Read more

Fair-cooperation guarantee

By sending us your money, you buy the service we provide. Check out our terms and conditions if you prefer business talks to be laid out in official language.

Read more

Order your essay today and save 10% with the coupon code: best10