$ 55,400 debit $700 credit dr balance cr 2200 2800 1500 2200 5000 6500 dr balance 2 Instructions: Fill in the yellow cells, using formulas/cell references wherever possible 3 The terms are net 30 days. 4 5 Balance of A/R on 12/31/2019 6 Balance of Allowance for Doubtful Accounts on 12/31/2019 BEFORE adjusting the books 7_A) Net Realizable Value of Accounts Receivable BEFORE adjusting the books 8 subsidiary ledger 9 A. Abel F. Fierman 10 dr cr balance 11 12/14/2019 purchase 8600 8600 10/5/2019 purchase 12 12/27/2019 paid 2400 6200 11/20/2019 purchase 13 12/20/2019 purchase 14 B. Barber 15 dr cr balance G. Gaylord 16 11/15/2019 purchase 4200 4200 17 12/5/2019 purchase 3800 8000 9/22/2019 purchase 18 11/22/2019 purchase 19 C. Curran 20 dr balance 21 12/2/2019 purchase 4500 45001 H. Harris 22 23 D. Dapper 12/29/2019 purchase 24 dr cr balance 25 5/10/2019 purchase 2100 2100 I. Ireland 26 27 E. Elmore 8/15/2019 purchase 28 dr cr balance 9/2/2019 purchase 29 11/22/2019 purchase 2700 2700 J. Jones 30 12/3/2019 purchase 1000 3700 31 10/11/2019 purchase 32 11/28/2019 purchase 33 800 800 5,900 6700 dr cr balance 5,500 5,500 dr balance cr 1600 1600 9600 8,000 dr balance cr 1600 1000 1600 2600 LGH Company Accounts Receivable Aging Schedule 12/31/2019 Number of Days Past Due 31-60 61-90 Customer Total Balance Current 1 - 30 Over 90 $ A. Abel B. Barber C. Curran D. Dapper E. Elmore F. Fierman G. Gaylord H. Harris I. Ireland J. Jones Total Accts. Receivable 6,200 8,000 4,500 2,100 3,700 6,500 6,700 5,500 9,600 2,600 55,400 Make sure that the total of the receivables on your aging schedule is equal to the total Accounts Receivable! Required Allowance Balance B)Calculate the Balance Required in the Allowance for Doubful Accounts -- LGH uses the Aging of Receivables Method % Likely Number of Days Past Due A/R Amount Uncollectible 0 1% 5% 31-60 10% 61-90 25% Over 90 40% Total 1 - 30 C) Adjusting Entry Account Title(s) Debit Credit Prepare the required adjusting entry after completing Part A above. Use formulas/cell references for the debit and credit amounts. Amount D) After recording the adjusting entry, determine the following-- using calculations in Excel: Balance of A/R on 12/31/2019 before adjusting the books Balance of Allowance for Doubtful Accounts on 12/31/2019 AFTER adjusting the books Net Realizable Value of Accounts Receivable AFTER adjusting the books Debit or Credit? Use drop-down menu that will appear when you click on cell. E) Write-off entry: D. Dapper would not be able to pay the overdue amount owed. Write off the D. Dapper receivable. Account Title(s) Debit Credit Prepare the required journal entry to write off the D. Dapper Account Receivable. Use formulas/cell references for debit and credit amounts. Amount F) After recording the adjusting entry, determine the following -- using calculations in Excel: Balance of A/R immediately after the write-off of D. Dapper's Account Receivable. Balance of Allowance for Doubtful Accounts immediately after the write-off of D. dapper's A/R. Net Realizable Value of Accounts Receivable AFTER adjusting the books Debit or Credit? Use drop-down menu that will appear when you click on cell