Question
For the Question below, refer to the following fact scenario for Papa Johns Corp. at December 31, 2016: Net Credit Sales: $3,250,000 Accounts Receivable: $400,000
For the Question below, refer to the following fact scenario for Papa Johns Corp. at December 31, 2016:
Net Credit Sales: $3,250,000
Accounts Receivable: $400,000
Allowance for Doubtful Accounts (Before any adjustment at year-end): $2300 debit
1) Assume that the accounts for Papa Johns performed an aging of Accounts Receivable and determined the following:
AGE Amount % Estimated Uncollectible
Not yet due $320000 5%
0-60 days past due $50000 40%
>60 days past due $30000 60%
The entry to adjust for estimated bad debts at December 31, 2019 would be:
a)After the entry above, what is the amount of net realizable receivables?
b)After the entry in a) above, what is the amount showing on the Income Statement as Bad Debt Expense?
c) On January 10, 202, Papa Johns Corp, determined that one receivable, in the amount of $2200, was not going to be collectible. The entry to write off this receivable is as follows:
d) If the balance in the account Allowance for Doubtful Accounts was a $1800 credit, before any adjustment (rather than a $2300 debit), the entry to adjust for estimated bad debts at December 31, 2019 would be:
e) The account Allowance for Doubtful Accounts typically has a ____________ (debit or credit) balance
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