Answered step by step
Verified Expert Solution
Question
1 Approved Answer
2. Solomon Shingles uses the aging method to estimate bad debt expense. At the beginning of the year, the company had an accounts receivable balance
2. Solomon Shingles uses the aging method to estimate bad debt expense. At the beginning of the year, the company had an accounts receivable balance of $47,600 anda credit balance in the allowance for doubtful accounts of S 9,960. During the year Solomon had credit sales of $1,248,600, and collected accounts receivable in the amount of $1,205,400. $21,200 of accounts receivable were determined to be uncollectible and written off. The company had the following analysis of accounts receivable at the end of the year: un Default Current 1-15 days past due 16-45 days past due 46-90 days past due Over 90 days past due $40,800 10,600 6,200 7,200 1% 2% 8% 15% 30% 4 $69,600 Windsor has a December 31 yearend Required: Answer the questions below on the following page: 1. Prepare the journal for the write-off of the accounts receivable of $21,200 2. Calculate the desired ending balance of the allowance for doubtful accounts at the end of the year 3. Prepare the journal entry to record bad debt expense at year end
Step by Step Solution
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