The Nestl Group disclosed the following analysis of its trade receivables at December 31, 2009 (amounts in

The Nestlé Group disclosed the following analysis of its trade receivables at December 31, 2009 (amounts in millions of Swiss francs, CHF):

Assume that the estimated percentages of uncollectible accounts were determined as 1 percent, 5 percent, 10 percent, 20 percent, 30 percent, and 40 percent for the six aged groups, respectively. At January 1, 2009, the allowance for doubtful accounts had a balance of CHF450, and a total of CHF396 were written off as uncollectible during 2009. The company recovered CHF40 from a major customer whose account was written off in 2008.

Required:
1. Prepare the journal entries to record the receivables that were written off in 2009 , the recovery of receivables written off in 2008, and the bad debt expense for 2009.
2. Show how the information related to trade receivables is presented on the company's statement of financial position as at December 31, 2009.

Transcribed Image Text:

Aged Trade Receivable Not pas: due Past due 1-30 days Amount $10,554 916 Past due 31-60 days 341 Past due 61-90 days 130 Past due 91-120 days 134 Past due more than 120 days 685. $12,760