ACC 205 Week 2 Exercise 10 Allowance method analysis of receivables

ACC 205 Week 2 Exercise 10 Allowance method analysis of receivablesAllowance method: analysis of receivables. At a January 20X2 meeting, the presi­dent of Sonic Sound directed the sales staff “to move some product this year.” The president noted that the credit evaluation department was being disbanded be­cause it had restricted the company’s growth. Credit decisions would now be made by the sales staff.By the end of the year, Sonic had generated significant gains in sales, and the president was very pleased. The following data were provided by the accounting department:20X220X1Sales$23,987,000$8,423,000Accounts Receivable, 12/3112,444,0001,056,000Allowance for Uncollectible Accounts, 12/31?23,000 cr.The $12,444,000 receivables balance was aged as follows:Age of ReceivableAmountPercentage of Accounts Expected to Be CollectedUnder 31 days$5,321,00099%31260 days3,890,0009061290 days1,067,00080Over 90 days2,166,00060Assume that no accounts were written off during 20X2.InstructionsEstimate the amount of Uncollectible Accounts as of December 31, 20X2.What is the company’s Uncollectible Accounts expense for 20X2?Compute the net realizable value of Accounts Receivable at the end of 20X1 and 20X2.Compute the net realizable value at the end of 20X1 and 20X2 as a percentage of respective year-end receivables balances. Analyze your findings and comment on the president’s decision to close the credit evaluation department.Follow this link to get a similar paper written from scratchPlace an order for this assignment or any other paper with us. We guarantee that the paper will be delivered within the specified deadline. We also have a personalized customer support and you will be able to communicate with your writer throughout the order preparation process. Thank you for choosing us.