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hi, i am having a hard time solving this problem 8.4B from the book Fundamental Accoutning Principles Volume 1. please help me solve it thank
hi, i am having a hard time solving this problem 8.4B from the book Fundamental Accoutning Principles Volume 1. please help me solve it thank you:)
CHAPTER 8 Receivables Problem 8-4B Aging accounts receivable LO2, 3 excel CHECK FIGURE: 2. Bad Debt Expense = $97,365 On December 31, 2020, Fresh Veggie Company's Allowance for Doubtful Accounts had an unadjusted debit balance of $9,800. The accountant for Fresh has prepared a schedule of the December 31, 2020, accounts re- ceivable by age and, on the basis of past experience, has estimated the percentage of the receivables in each age category that will become uncollectible. This information is summarized as follows: December 31, 2020 Accounts Receivable Expected Percentage Uncollectible $1,510,000 715,000 152.000 97,000 25,000 Age of Accounts Receivable Not due (under 30 days) 1 to 30 days past due 31 to 60 days past due 61 to 90 days past due Over 90 days past due 1.25% 2.00 6.50 33.00 50.00 Required 1. Calculate the amount that should appear in the December 31, 2020, balance sheet as the Allowance for Doubtful Accounts. 2. Prepare the journal entry to record bad debt expense for 2020, Analysis Component: On July 31, 2021, Fresh concluded that a customer's $9,200 receivable (created in 2020) was uncollectible and that the account should be written off. What effect will this action have on Fresh's 2021 profit? Explain your Step by Step Solution
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