Accounting: Text & Cases Problem 5-4 and Case 5-1 Solution

Tugas 04 - Accounting for Managers

Kelompok 4:
1. Haris Pratama Loeis 1306497062
2. Ibrahim Adam 1306497075
3. Jati Perdana 1306497144
4. Maydhani Arnia E.P. 1306497226
5. Meiryanti Andryani 1306497251

Problem 5-4

(in USD)
Days Account Outstanding
Amount
Probability of Collection
Allowance Amount
Write-Off Amount
Less than 16 450,000.00 0.99 4,500.00 -
16 to 30 150,000.00 0.94 9,000.00 -
31 to 45 75,000.00 0.80 15,000.00 -
46 to 60 45,000.00 0.65 15,750.00 -
61 to 75 15,000.00 0.50 7,500.00 -
Over 75 15,000.00 - - 15,000.00
Total

51,750.00 15,000.00

a. Appropriate balance for AFDA is $ 51,750.00
(equals to Allowance Amount in the Aging Schedule)

b. Presentation of Accounts Receivable in Balance Sheet:
Accounts Receivable 735,000.00
Less: Allowance for Doubtful Accounts 51,750.00
Net, Accounts Receivable 683,250.00

c. Dollar Effect of Bad Debt Expense:
AFDA, Beginning Balance 37,500.00
AFDA, Write-Off (15,000.00)
AFDA, Movement 29,250.00
AFDA, Ending Balance 51,750.00

Dollar Effect of Bad Debt Expense is $ 29.250.00
(equals to movement amount of AFDA)

Case 5-1: Question 1

Stern Corporation

General Journal

(in USD)
Date
Account
Dr.
Cr.
2010

Dec
31
Accounts Receivable 9,965,575.00

Sales 9,965,575.00 31 Cash 9,685,420.00

Accounts