Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

An analysis of XYZ's accounts receivable shows the following amounts: Month of sale November, 2022 October, 2022 September, 2022 August, 2022 June and July,

image text in transcribed

An analysis of XYZ's accounts receivable shows the following amounts: Month of sale November, 2022 October, 2022 September, 2022 August, 2022 June and July, 2021 Estimated percentage Balance of Accounts Receivable uncollectable $30 000 19 13 000 3% 2 200 20% 5 100 30% 800 50% Credit terms are 1/7, n/45. The entity uses the ageing of accounts receivable basis for estimating uncollectable accounts. At 30 November, 2022, there is a $500 debit balance in Allowance for Doubtful Debts before adjustment. Required: a) Determine the total estimated uncollectable (1 mark) b) Prepare the adjusting entry at 30 November, 2022 to record bad debts expense (1 mark) c) In December 2022, a $1 500 customer balance is determined to be uncollectable. Prepare the journal entry. (1 mark) d) Determine the balance of Allowance for Doubtful Debts in December before the December adjustment, in your answer, please (1) calculate the balance amount and (2) indicate whether it is a debit or credit balance. (1 mark) "Narrations in the general journals are not required.

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access with AI-Powered Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Managerial Accounting

Authors: Ray Garrison, Eric Noreen, Peter Brewer

16th edition

1259307417, 978-1260153132, 1260153134, 978-1259307416

Students also viewed these Accounting questions

Question

What constitutes an interface failure?

Answered: 1 week ago

Question

What do you like to do for fun/to relax?

Answered: 1 week ago

Question

Give a proof of Theorem 9.1.

Answered: 1 week ago