Answered step by step
Verified Expert Solution
Question
00
1 Approved Answer
3. (6 pts) On Murch 4, 20A the credit manager at Wonst Clothes butherizes a write-aft of the 12,400 balance bwed by a castomer. Before
3. (6 pts) On Murch 4, 20A the credit manager at Wonst Clothes butherizes a write-aft of the 12,400 balance bwed by a castomer. Before the write-off, assuttse the balance of Accounts Receivabile tcoount is 1145,000 and the bulasce of Allowance for Dobabeful Aceounts is a crodit of 55,000 . (a) Make the appropriate entry to record the write off of the custemer'i account. (b) What is the amount of net realizable accounts receivable before anit after the wzine-off Before Write-0ff: After Write-off: Worst Clothes Store has credit sales of 5850,000 in 20A and a debit balasce of 53,000 in the Allowance foe Doubtiful Accounts at year end. As of December 31,20A,$160,000 of accocents receivable remain uncollocied, The credit manaper of Woest prepared an aging sehedule of acconants reseivable and citimuses that 56,500 will prove to be uncollectible. (c) Prepare the adjusting entry to recosd the estimatod uncollictible accounts expense in 20A. 4. (12 pts). The ledger of the Poetiflo company at the end of the current year shows Accounts Receivable of $130,000 asd Sales of 5900,000 . Joursalize the adjusting entry for end of the period for each of tho fallowing independent scenarios: (a) If Allowance for Doubciul Accounts has a debit balance of $3,000 in the trial halance and bad dcbts are expected to be 6 ses of accounts receivable. AllaD De (b) If Allowance for Doubtfit Accounts has a credit balance of $2,000 in the trial balance and bad debts are expected to be 6% of accounts receivable. (c) If Ailowance for Doubtfal Accotants has a debit baiance of $3,000 in the trial balance and bad dobes are expected to be 1% of sales. (d) If Allowiance for Doubtrial Accounts has a credit balance of $2,000 in the trial batance and bad debts are expected to the 1% of sales
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access with AI-Powered 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