Answered step by step
Verified Expert Solution
Question
1 Approved Answer
I am not entirely sure how to calculate the dollar amounts for bad debt expense and allowance for doubtful accounts. Help would be greatly appreciated.
I am not entirely sure how to calculate the dollar amounts for bad debt expense and allowance for doubtful accounts. Help would be greatly appreciated. Thank you!
Over 90 The following is an aging schedule for a company's accounts receivable as at December 31, 2019: Number of days past due Total amount Current (not Customer's name owed yet due) 1-30 31-60 61-90 Aber $30,000 $9,000 $21,000 Bohr 38,000 $38,000 Chow 55,000 15,000 25,000 $15,000 Datz 30,000 Others 158,000 95,000 15,000 13,000 15,000 $311,000 $148,000 $49.000 $34,000 $30,000 Estimated percentage 3% 6% 10% 25% that will be uncollectible Estimated value $43,280 $4.440 $2.940 $3,400 $7,500 of uncollectibles $30,000 20,000 $50,000 50% $25,000 On December 31, 2019, the unadjusted balance in the Allowance for Doubtful Accounts (prior to the aging analysis) was a credit of $10,000 Your answer is partially correct. Journalize the adjusting entry for bad debts on December 31, 2019. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry"for the account titles and enter for the amounts.) Account Titles and Explanation Debit Credit Bad Debts Expense 43280 Allowance for Doubtful Accounts 43280 eTextbook and Media List of Accounts Your answer is partially correct. Journalize the adjusting entry for bad debts on December 31, 2020, assuming that the unadjusted balance in Allowance for Doubtful Accounts at that time is a debit of $1,000 and an aging schedule indicates that the estimated value of uncollectibles is $42,000. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter for the amounts.) Date Account Titles and Explanation Debit Credit Dec. Bad Debts Expense Allowance for Doubtful Accounts 41000 31 41000 e Textbook and Media List of AccountsStep by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started