Campbell-Wilson Corporation, is a software development company that tecently reported the following amounts (in thousands) in its unadjusted trial balance as of February 28,2019. Required: 1. Assume Campbell-Wison uses 1/4 of 1 percent of revenue to estimate its bad debt expense for the yeac. Prepare the adjusting journal entry required at February 28 for recording Bad Debt Expense. 2. Assume instead that Campbell-Wilson uses the aging of accounts recelvable method and estimates that $5,300 (thousand) of Accounts Recelvable will be uncollectible. Prepare the adjusting journal entry required at February 28 for recording bad debt expense. TIP: The aging of accounts receivable method focuses on calculating what the adjusted Allowance for Doubtful Accounts balance should be. You need to consider the existing balance when determining the adjustment. 3. Assume that the unadjusted balance in Campbell-Wilson's Allowance for Doubtful Accounts at Fobruary 28 was a debit balance of $1,060 (thousand). Campbell-Wilson uses the aging of accounts receivable method and estimates that $5,300 (thousand) of Accounts Recelvable will be uncollectible. Prepare the adjusting journal entry tequired at February 28 for recording bad debt expense. 4. If one of Campbell-Wilson's customers declared bankruptcy, what joumal entry would be used to write off its $530 (thousand) balance? Assume Campbell-Wilson uses k of 1 percent of revenue to estimate its bad debt expense for the year. Prepare the adjusting journal entry required at February 28 for recording Bad Debt Expense. (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account feld. Enter your answers in whole dollars, rather than in thousands of dollars (e.g. $4 would be entered as $4,000) Journal entry worksheet Record the entry for bad debt expenses under the percentage of credit sales method. Note: Enter debiss before credits Assume instead that Campbell-Wilson uses the aging of accounts receivable method and estimates that $5,300 (thousand) of Accounts Recelvable will be uncollectible. Prepare the adjusting journal entry required at February 28 for recording bad debt expense. IIP: The aging of accounts recelvable method focuses on calculating what the adjusted Allowance for Doubtful Accounts balance should be. You need to consider the existing balance when determining the adjustment. (If no entry is required for a transactionvevent, select. "No Journal Entry Required" In the first account field. Enter your answers in whole dollars, rather than in thousands of dollars (e.g. \$4. would be entered as $4,000). Journal entry worksheet Record the entry for bad debt expenses under the aging of accounts recelvable method. Fote. Enter debits belore credits. Assume that the unadjusted balance in Campbell-Wilson's Allowance for Doubtful Accounts at February 28 was a debit balance of $1,060 (thousand). Campbell-Wilson uses the aging of accounts receivable method and estimates that $5,300 (thousand) of Accounts Recelvable will be uncollectible. Prepare the adjusting journal entry required at February 28 for recording bad debt expense. (If no entry is required for a transaction/event, select, "No Journal Entry Required" in the first account field. Enter your answers in whole dollars, rather than in thousands of dollars (e.g. $4 would be entered as $4,000).) Journal entry worksheet Record the adjusting entry for bad debts as of February 29, using the aging of accounts recelvable method. Note: Enter debits before credits: If one of Campbeil-Wilson's customers declared bankruptcy, what journal entry would be used to write off its $530 (thousand) balance? (If no entry is required for a transaction/event, select "No Joumal Entry Required" in the first account field. Enter your answers in whole dollars, rather than in thousands of dollars (e.9,$4 would be entered as $4,000).) Journal entry worksheet Record the write-off of a $530,000 customer account, which is not collectible due to bankruptey. Mote: Inter debits Defore credits
