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  • 5 9 Buenaventura

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    Anonn
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    The document outlines the calculation of allowance for doubtful accounts for Scion Company for the year ending December 31, 2020. It shows the beginning allowance of $28,000, addition of $30,000 for doubtful debts in 2020, recovery of $7,000, and write-off of $25,000, resulting in an allowance before adjustment of $38,000 as of December 31, 2020. It also calculates the required allowance of $39,000 as of December 31, 2020 based on aging of accounts receivable, requiring an adjustment of $1,000.

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    Intermediate Accounting1

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    The document outlines the calculation of allowance for doubtful accounts for Scion Company for the year ending December 31, 2020. It shows the beginning allowance of $28,000, addition of $30,000 for doubtful debts in 2020, recovery of $7,000, and write-off of $25,000, resulting in an allowance before adjustment of $38,000 as of December 31, 2020. It also calculates the required allowance of $39,000 as of December 31, 2020 based on aging of accounts receivable, requiring an adjustment of $1,000.

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    © All Rights Reserved
    Download as XLSX, PDF, TXT or read online from Scribd
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    6 views1 page

    5 9 Buenaventura

    Uploaded by

    Anonn
    The document outlines the calculation of allowance for doubtful accounts for Scion Company for the year ending December 31, 2020. It shows the beginning allowance of $28,000, addition of $30,000 for doubtful debts in 2020, recovery of $7,000, and write-off of $25,000, resulting in an allowance before adjustment of $38,000 as of December 31, 2020. It also calculates the required allowance of $39,000 as of December 31, 2020 based on aging of accounts receivable, requiring an adjustment of $1,000.

    Copyright:

    © All Rights Reserved
    Download as XLSX, PDF, TXT or read online from Scribd
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    of 1

    Scion Company Buenaventura; BSA1B

    Requirement:

    1) Allowance - Jan 1, 2020 (1%*2,800,000) 28,000

    2) Allowance - Jan 1, 2020 (1%*2,800,000) 28,000


    Doubtful accounts recorded in 2020 (1%*3m) 30,000
    Recovery 7,000
    Total 65,000
    Writeoff -25,000
    Allowance before adjustment - Dec 31, 2020 38,000

    3) 300k*1% 3,000
    80k*5% 4,000
    60k*20% 12,000
    25k*80% 20,000
    Required allowance - Dec 31, 2020 39,000

    4) Doubtful accounts 1,000


    Allowance for doubtful aacounts 1,000
    (39,000-38,000)

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