Homework 7 Bad Debt Accounts Receivable Aging for Lowry Inc. March 31, 2020 360+ Current Jan-90 91-180 100.000 B0,000 60,000 Lowry Inc had sales of $150,000 for the month of March As of February 29, 2020, Lowry's Allowance for Doubtful Accounts has a credit balance of 511,500 Historically. Lowry has been unable to collect 4% of their outstanding Accounto Receivable balance Using the percentage of Receivables Method and a % reserverate, what is Lowry's required reserve as of the end of March? 181-360 40.000 Total 300,000 20.000 ANSWER: By how much should Lowry Increase or decrease Allowance for Doubful Accounts? ANSWER: What is the journal entry that Lowry should record on March 31, 2020 to estimate bad debt? 1-90 Total 555,000 181-360 25.000 60% 360+ 2.000 100% 88,000 10% Homework 7 Bad Debt Accounts Receivable Aging for Colombo Inc. April 30, 2020 Aging Buckets Current 91-160 Outstaning Balance Reserve Rate 300,000 140,000 2% 546 Colombo Inc had sales of $70,000 for the month of April When Colombo uses the Percentage of Sales Method, they reserve at a rate of 1% When Colombo uses the Aging of Receivables Method, the use the rates listed immediately below the outstanding AR balances by bucket As of March 31, 2020, Colombo's Allowance for Doubtful Accounts has a credit balance of $35.000 Using the Percentage of Sales Method, what is Colombo's bad debt expense for Aprit? ANSWER: What is the journal entry that Colombo should record on April 30, 2020 to estimate bad debt? Using the Percentage of Receivables Method, what is Colombo's required reserve as of the end of April? ANSWER: By how much should Colombe increase or decrease Allowance for Doublul Account? ANSWER: What is the journal entry that Colombo should record on April 30, 2020 to estimate bad debt? Using the Aging of Receivables Method, what is Colombo's required reserve as of the end of April? ANSWER: By how much should Colombo increase or decrease Allowance for Doubful Accounta? ANSWER: What is the journal entry that Colombo should record on April 30, 2020 to estimate bad debt? Homework 7 Bad Debt Accounts Receivable Aging for Salty Inc. April 30, 2020 Current Total 1-90 360+ 181-360 25,000 76,000 3,000 10,000 Salty Inc had sales of $70,000 for the month of March As of March 31, 2020, Salty's Allowance for Doubtful Accounts has a credit balance of $3.000 Using the Percentage of Receivables Method and as reserve rate, what is Salty's required reserve as of the end of April? 91-180 18,000 20,000 ANSWER: By how much should salty increase or decrease Allowance for Doubtful Accounts ? ANSWER: What is the journal entry that Salty should record on April 30, 2020 to estimate bad debt? 360+ Total 76.000 Homework 7 Bad Debt Accounts Receivable Aging for Salty Inc. April 30, 2020 Current 1-90 25,000 20,000 Salty Inc had sales of $70,000 for the month of April An of March 31, 2020, Salty's Allowance for Doubtful Accounts has a credit balance of $3,000 Using the Percentage of Sales Method and a 1.5% reserve rate, what is Salty's bad debt expense for April? 91-180 18,000 181-360 10,000 3,000 ANSWER What is the Journal entry that Salty should record on April 30, 2020 to estimate bad debt
