Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

B-Good, Inc. has accounts receivable at September 30 of $1,000,000. At September 30, Allowance for Doubtful Accounts has a credit balance (prior to adjustment)

image text in transcribed

B-Good, Inc. has accounts receivable at September 30 of $1,000,000. At September 30, Allowance for Doubtful Accounts has a credit balance (prior to adjustment) of $ 2,250 The Company uses the percentage of receivables basis for estimating uncollectible accounts. An analysis of the accounts and the percentage of estimated bad debts are as follows: Month of Sale: Age of Accounts 9/30 Balance Estimated % Uncollectible September 1 - 30 days $650,000 2.5% August 31-60 days 150,000 6.0% July 61-90 days 120,000 33.0% June 91-120 days 50,000 59.0% Prior to June over 120 days 30,000 90.0% $1,000,000 Instructions: (a) Determine the total estimated uncollectibles. Complete the T Account to the right with the beginning, ending and adjustment amounts. (Hint: There will be 3 amounts in the T account) Age of Accounts Cell Reference Cell Reference Total Estimated Balance Cell Reference Cell Reference % Cell Reference Cell Reference Uncollectible Formula Formula Cell Reference Cell Reference Cell Reference Formula Cell Reference Cell Reference Cell Reference Formula Cell Reference Cell Reference Cell Reference Formula Formula (b) Record the adjusting journal entry to estimate bad debts. Include an explanation of the entry. Debit Credit Sep 30 Account Title Account Title Explanation Formula Cell Reference Allowance For Doubtful Accounts (c) On 10/15, management authorizes the write-off of an uncollectible customer account with a balance of Record this write off. $ 9,640 Oct. 15 Account Title Account Title Debit Cell Reference Credit Cell Reference

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored 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

Human Resource Management

Authors: John Bernardin

6th Edition

978-0078029165, 0078029163

More Books

Students also viewed these Accounting questions

Question

Evaluate each expression if possible. (-3)4

Answered: 1 week ago

Question

b. What is the persons job title?

Answered: 1 week ago

Question

Detect descriptive methods that distort the truth (2.9)

Answered: 1 week ago

Question

What is the advantage of a Pareto diagram over a bar graph?

Answered: 1 week ago