E6-23 (Algo) Recording, Reporting, and Evaluating a Bad Debt Estimate Using Aging Analysis L06-2 909 po Brown Cow Dairy uses the aging approach to estimate bad debt expense. The ending balance of each account receivable is aged on the basis of three time periods as follows: (1) not yet due $12,500 (2) up to 120 days past due, $3,500, and (3) more than 120 days past due. 5,500. Experience has shown that for each age group, the average loss rate on the amount of the receivables at year-end due to uncollectibility is (1) 2 percent. (2) 12 percent, and (3) 30 percent, respectively. At December 31 (end of the current year), the Allowance for Doubtful Accounts balance is $800 (credit) before the end of period adjusting entry is made Data during the current year follow During December, an Account Receivable (Potty Bake Shop) of $750 from a prior sale was determined to be uncollectible 6. On December 31, the appropriate adjusting entry for the year was recorded Required: 1. Give the required journal entries for the two items listed above 2. Show how the amounts related to Accounts Receivable and Bad Debt Expense would be reported on the income statement and balance sheet for the current year. Disregard income tax considerations Complete this question by entering your answers in the tabs below. Req Reg 2 Rea 25 Give the required journal entries for the two items listed above. If no entry is required for a transaction/event, select "No journal entry required in the first account held) View transactions Journal entry worksheet ME 1 complete this question by entering your answers in the tas below Reg 1 Reg 2A Reg 28 9.09 DO Give the required journal entries for the two items listed above. (If no entry is required for a transaction/event, select "No journal entry required in the first account field) View transaction et Journal entry worksheet Record the entry to write of an account receivable determined to be uncollectible Test Enter der before credits Creal Debi Datu General Journal December 31 Record entry Crear entry View general Journal 1 complete this question by entering your answers in the tops Delow. Reg 1 Reg 2A Req 28 9.09 points Give the required Journal entries for the two items listed above. (If no entry is required for a transaction/event, select "No journal entry required in the first account field.) View transaction list Journal entry worksheet ME 1 therefore, it was written oft immediately as a bad debt. b. On December 31, the appropriate adjusting entry for the year was recorded. 9.09 points Required: 1. Give the required journal entries for the two items listed above. 2. Show how the amounts related to Accounts Receivable and Bad Debt Expense would be reported on the income statement and balance sheet for the current year. Disregard income tax considerations, Complete this question by entering your answers in the tabs below. Reg 1 Red 2A Ria 28 Show how the amounts related to Accounts Receivable and Bad Debt Expense would be reported on the balance sheet for the current year. Disregard income tax considerations. (Amounts to be deducted should be indicated by a minus sign.) BROWN COW DARY Balance Sheet (Partial As of December 31 Current assets Reg 2A
