Question
1.Wasabi Corp.'s accounts receivable subsidiary ledger shows the following information: Customer Account balance Invoice Date Invoice Amount Ruel,Inc 35,180 12/6/12 14,000 11/29/12 21,180 Blanca,Inc 20,920
1.Wasabi Corp.'s accounts receivable subsidiary ledger shows the following information:
Customer
Account balance
Invoice Date
Invoice Amount
Ruel,Inc
35,180
12/6/12
14,000
11/29/12
21,180
Blanca,Inc
20,920
9/27/12
12,000
8/20/12
8,920
Hannah,Inc
30,600
12/8/12
20,000
10/25/12
10,600
Renee,Inc
45,140
11/17/12
23,140
10/9/12
22,000
Henry,Inc
31,600
12/12/12
19,200
12/2/12
12,400
Edmund, Inc.
17,400
9/12/12
17,400
The estimated bad debt rates are based on Wasabi Corp's receivable collection experience.
Age of Accounts
Rate
0-30 days
1%
31-60 days
1.5%
61-90 days
3%
91-120 days
10%
Over 120 days
50%
The allowance for bad debts account had a debit balance of P5,500 on December 31, 2012, before adjustment.
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Financial And Managerial Accounting
Authors: Charles T Horngren, Jr Walter T Harrison
2nd Edition
0135080193, 9780135080191
