CP8-1 (Algo) Recording Accounts Receivable Transactions Using Two Estimation Methods [LO 8-2] Campbell-wilson 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 Campbell-Wilson 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 Campbell-Wilson uses the aging of accounts receivable method and estimates that $6,900 (thousand) of Accounts Recelvable wilt be uncollectible. Prepare the adjusting journal entry required at February 28 for recording bod 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 Campbeli-Wilson's Allowance for Doubtful Accounts at February 28 was a debit balance of $1,380 (thousand). Compbell.Wilson uses the aging of accounts receivable method and estimates that $6,900 (thousand) of Accounts Receivable will be uncollectible. Prepare the adjusting joumal entry required at February 28 for recording bad debt expense. 4. If one of Campbell-Wison's customers deciared bankruptcy, what journal entry would be used to write off its $690 (thousand) balance? CP8-1 (Algo) Recording Accounts Receivable Transactions Using Two Estimation Methods [LO 8-2] Campbell-wilson 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 Campbell-Wilson 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 Campbell-Wilson uses the aging of accounts receivable method and estimates that $6,900 (thousand) of Accounts Recelvable wilt be uncollectible. Prepare the adjusting journal entry required at February 28 for recording bod 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 Campbeli-Wilson's Allowance for Doubtful Accounts at February 28 was a debit balance of $1,380 (thousand). Compbell.Wilson uses the aging of accounts receivable method and estimates that $6,900 (thousand) of Accounts Receivable will be uncollectible. Prepare the adjusting joumal entry required at February 28 for recording bad debt expense. 4. If one of Campbell-Wison's customers deciared bankruptcy, what journal entry would be used to write off its $690 (thousand) balance
