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12 Points Question 2 of 2 Jabbar Company allows 30 days credit to all of its customers. The invoice wise break down of accounts receivable
12 Points Question 2 of 2 Jabbar Company allows 30 days credit to all of its customers. The invoice wise break down of accounts receivable of Jabbar Company as at December 31, 2019 is appended below: Aug 15 Esmail & Co $61531 July 20 Dawood & Co. $390271 Sep 11 Cassim & Co. $306000 Oct 15 Akbar & Co. $114814 Oct 28 Esmail & Co. $132600 Nov 11 Cassim & Co. $51762 Nov 15 Akbar & Co. $91970 Nov 28 Esmall & Co. $153482 Dec 9 Babar & Co. $306843 Dec 11 Cassim & Co. $1155580 Dec 28 Esmall & Co. $938670 A: December 31, 2019, the unadjusted balance in Allowance for Doubtful Accounts is credit of $111743. Probability of collection of receivable is 96% for not yet due: 90% for past dues upto 30 days, 83% for past due over thirty days but upto sixty day, 72% for past due over sixty days but upto ninety days, 50% for past due over ninety days Instructions: (a) What is the total outstanding balance of Akbar & Co. (b) Prepare an aging schedule as December 31, 2019. (c) Compute the estimated amount of bad debts as at December 31, 2019 (d) Journalize and post the adjusting entry for bad debts at December 31, 2019. (e) Journal ze and post to the allowance account the following events and transactions in the year 2020 0 On March 1, a customer balance $13883 originating in 2019 is judged uncollectible. () on May 1, a check of $13883 is received from the customers whose account was written off as uncollectible on March 1. (1) Journalize the adjusting entry for bad debts on December 31, 2020. Assume that the unadjusted balance in Allowance for Doubtful Accounts is a debit of $15230 and the aging schedule indicates that total estimated bad debts will be $287713
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