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HW6203%20-962012-05.docx Format Tools Help Dow Normal Aging of Accounts Receivable Exercise A company uses the aging of accounts receivable method to estimate its bad debes
"HW6203%20-962012-05.docx Format Tools Help Dow Normal Aging of Accounts Receivable Exercise A company uses the aging of accounts receivable method to estimate its bad debes expense. On December 31 of the current year an aging analysis of accounts receivable revealed the following AccountsEstimatedReceivable Account AgeUncollectibles 270,0001-30 days overdue.... 2.0145,00031-60 days overdue 620,000Not due yet. 0.5% 8.055,00061-90 days ovenue 20.032.00091-120 days overdue.30.0 18,0000ver 120 days overdue70.051.140.0Total Required: a. Calculate the amount of the Allowance for Doubeful Accounts that should be reported on the current year-end balance sheet. b. Calculate the amount of the Bad Debes Expense that should be reported on the current year's income statement, assuming that the balance of the Allowance for Doubtful Accounts an January 1 of the current vear was $44,000 and that accounts receivable written off during the curent vear totaled $49,200. C. Prepare the adjusting entry to recond bad debts expense on December 31 of the curret year d. Show how Accounts Receivable will appear on the current year-end balance shert as of December 31
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