CP8-1 (Algo) Recording Accounts Receivable Transactions Using Two Estimation Methods [LO 8-2] Trivedi Corporation, is a software development company that recently reported the following amounts (in thousands) in its unadjusted trial balance as of February 28,2019 Required: 1. Assume Trivedi uses 1/4 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. 2. Assume instead that Trivedi uses the aging of accounts receivable method and estimates that $5,500 (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 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. 3. Assume that the unadjusted balance in Trivedi's Allowance for Doubtful Accounts at February 28 was a debit balance of $1,100 (thousand). Trivedi uses the aging of accounts receivable method and estimates that $5,500 (thousand) of Accounts Recelvable will be uncollectible. Prepare the adjusting journal entry required at fobruary 28 for recording bad debt expense. 4. If one of Trivedi's customers declared bankruptcy, what journal entry would be used to write off its $550 (thousand) balonce? Complete this question by entering your answers in the tabs below. Assume Trivedi uses 1/4 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. (t) no entry is required for a transaction/avent, select "No journal 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)1 Assume Trivedi uses 1/4 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 field. Enter your answers in whole dollars, rather than in thousands of dollars (e.g. $4 would be entered as 54,000) Journal entry worksheet Record the entry for bad debt expenses under the percentage of credit sales method. Note: Enter debits before oredits. Assume instead that Trivedi uses the aging of accounts recelvable method and estimates that $5,500 (thousand) of Accounts Receivable Will be uncollectible. Prepare the adjusting fournal 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. (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, father 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 receivable method. Note: tinter debits before credits, sume that the unadjusted balance in Trivedi's Allowance for Doubtful Accounts at February 28 was a debit balance of $1,100 nousand). Trivedi uses the aging of accounts receivable method and estimates that $5,500 (thousand) of Accounts Receivable will be collectible. Prepare the adjusting journal entry required at February 28 for recording bad debt expense. (If no entry is required for a ansaction/event, select "No Journal Entry Required" in the first account field. Enter your answers in whole dollars, rather than in ousands 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 betore credits: If one of Trivedi's customers deciared bankruptcy, what journal entry would be used to write off its $550 (thousand) balance? (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 write-off of a $550,000 customer account, which is not collectible due to bankruptcy. Notel Enter debits before credits
