Rowen Company has accounts receivable of $241,000 at September 30, 2024. An analysis of the accounts shows
Question:
Rowen Company has accounts receivable of $241,000 at September 30, 2024. An analysis of the accounts shows the following:
Credit terms are 2/10, n/30. The unadjusted balance in the Allowance for Doubtful Accounts on September 30, 2024, is $1,400 debit. The company uses an aging schedule to estimate uncollectible accounts. The company’s percentage estimates of bad debts are as follows:
Instructions
a. Prepare an aging schedule to determine the total estimated uncollectible accounts at September 30, 2024.
b. What is the carrying amount of the accounts receivable at September 30, 2024?
c. Prepare the adjusting entry at September 30 to record bad debt expense.
Step by Step Answer:
Accounting Principles Volume 1
ISBN: 9781119786818
9th Canadian Edition
Authors: Jerry J. Weygandt, Donald E. Kieso, Paul D. Kimmel, Barbara Trenholm, Valerie Warren, Lori Novak