Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Blossom Company has accounts receivable of $168.000 at September 30, 2021. An analysis of the accounts shows the following: Month of Sale Balance September $118.000
Blossom Company has accounts receivable of $168.000 at September 30, 2021. An analysis of the accounts shows the following: Month of Sale Balance September $118.000 August 25.000 July 14,000 April, May, and 11,000 June $168,000 Credit terms are 2/10,n/30. The unadjusted balance in the Allowance for Doubtful Accounts on September 30, 2021, is $2,040 debit. The company uses an aging schedule to estimate uncollectible accounts. The company's percentage estimates of bad debts are as follows: Estimated % Uncollectible Number of Days Outstanding 0-30 31-60 61-90 Over 90 19 10% 25% 60% Prepare an aging schedule to determine the total estimated uncollectible accounts at September 30,2021. Estimated Uncollectible Amount 96 196 $ Age of Accounts 0-30 days outstanding 31-60 days outstanding 61-90 days outstanding Over 90 days outstanding $118.000 25.000 1096 14.000 2596 11,000 6096 96 Uncollectible Amount $118.000 196 $ Age of Accounts 0-30 days outstanding 31-60 days outstanding 61-90 days outstanding Over 90 days outstanding 25,000 10% 25% 14.000 11.000 60% $ What is the carrying amount of the accounts receivable at September 30, 2021? Carrying amount $ Prepare the adjusting entry at September 30 to record bad debt expense. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry for the account titles and enter for the amounts.) Debit Credit Date Account Titles and Explanation Sept. 30 (To record estimate of uncollectible accounts.)
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