Accounts Receivable of the Foxwood Manufacturing Co. on December 31, 2008, had a balance of $450,000.Allowance for

Question:

Accounts Receivable of the Foxwood Manufacturing Co. on December 31, 2008, had a balance of $450,000.Allowance for Bad Debts had a $3,600 debit balance. Sales in 2008 were $1,720,000 less sales discounts of $26,000. Give the adjusting entry for estimated Bad Debt Expense under each of the following independent assumptions.

1. Of 2008 net sales, 1.5% will probably never be collected.

2. Of outstanding accounts receivable, 3% are doubtful.

3. An aging schedule shows that $12,300 of the outstanding accounts receivable are doubtful.

Accounts Receivable
Accounts receivables are debts owed to your company, usually from sales on credit. Accounts receivable is business asset, the sum of the money owed to you by customers who haven’t paid.The standard procedure in business-to-business sales is that... Aging Schedule
Aging schedule is an accounting table that shows a company’s account receivables. It is an summarized presentation of accounts receivable into a separate time brackets that the rank received based upon the days due or the days past due. Generally...