Question
Addy Weddings uses the balance sheet approach to estimate uncollectible receivables. The aging of receivables on December 31, 2021 is shown in part a). Required
Addy Weddings uses the balance sheet approach to estimate uncollectible receivables. The aging of receivables on December 31, 2021 is shown in part a). Required a) Calculate the required allowance for doubtful accounts. Do not enter dollar signs or commas in the input boxes. Round all answers to the nearest whole number. Aging Category Bad Debt % Balance Required Allowance Under 30 days 2.0% $204,000 $Answer 31 - 60 days 5.0% $48,000 $Answer 61 - 90 days 20.0% $16,000 $Answer More than 90 days 70.0% $3,000 $Answer Total $271,000 $Answer b) Prepare the journal entry on December 31, 2021 to record bad debt expense, assuming the allowance account has a $2,100 credit balance. Date Account Title and Explanation Debit Credit Dec 31 Answer Answer Answer Answer To record estimated bad debt for the year c) Prepare the journal entry on December 31, 2021 to record bad debt expense, assuming instead that the allowance account has a $23,000 credit balance. Date Account Title and Explanation Debit Credit Dec 31 Answer Answer Answer Answer To record estimated bad debt for the year d) Prepare the journal entry on December 31, 2021 to record bad debt expense, now assuming the allowance account has a $1,200 debit balance.
Step by Step Solution
3.35 Rating (155 Votes )
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started