Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

11. A company has the following unadjusted account balances at December 31, of the current year; Accounts Receivable of $185,700 and Allowance for Doubtful Accounts

image text in transcribed

11. A company has the following unadjusted account balances at December 31, of the current year; Accounts Receivable of $185,700 and Allowance for Doubtful Accounts of $1,600 (credit balance). The company uses the aging of accounts receivable to estimate its bad debts. The following aging schedule reflects its accounts receivable at the current year-end: Estimated Uncollectible Account Age Current (not yet due). 1-30 days past due Balance Percentage 1.0% 61-90 days past du... Over 90 days past due .. Total 64,000 3.5 16,000 12.0 6,500 42.0 3.20067.0 $185,700 a) Calculate the amount of the Allowance for Doubtful Accounts that should appear on the December 31, of the current year, balance sheet. Three (3) points Est Uncollectible Est Balance of Uncollectible Account Age Balance Amount Current (not yet due 96,000 1-30 days past due 64,000 3.5% 31-60 days past due S 16,000 12% 61-90 past due Over 90 days past due S 6,500 $ 3,200 $ 185,700 67% Total b) Prepare the adjusting journal entry to record bad debts expense for the current year. Two (2) points Date Account Titles and Explanation Debit Credit

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Financial Accounting Theory And Analysis Text And Cases

Authors: Richard G. Schroeder, Myrtle W. Clark, Jack M. Cathey

9th Edition

9780470128817

More Books

Students also viewed these Accounting questions

Question

OUTCOME 3 Describe pay equity and strategies for implementing it.

Answered: 1 week ago