Presented below is an aging schedule for Kimler Company on December 31, 2021. Kimler sells all of

Question:

Presented below is an aging schedule for Kimler Company on December 31, 2021. Kimler sells all of its goods on account with terms n/30.

At December 31, 2021, the unadjusted balance in Allowance for Doubtful Accounts is a credit of $10,000.

Instructions

a. Using the above aging schedule, determine the total estimated uncollectible accounts at December 31, 2021.

b. Prepare the adjusting journal entry to record bad debt expense.

c. Show how accounts receivable would be presented on the balance sheet on December 31, 2021.

If Kimler?s credit manager increases the amount of credit checking the company does before granting credit on all of its customers, will that eliminate the bad debts? Explain.

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... Balance Sheet
Balance sheet is a statement of the financial position of a business that list all the assets, liabilities, and owner’s equity and shareholder’s equity at a particular point of time. A balance sheet is also called as a “statement of financial...

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