Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Lab #3 Question 5 (Chapter 8) At Dec 31, Hamilton Ince prepared the following aging schedule for the Accounts Receivable: Days Outstanding Accounts Receivable Estimated

image text in transcribed

Lab #3 Question 5 (Chapter 8) At Dec 31, Hamilton Ince prepared the following aging schedule for the Accounts Receivable: Days Outstanding Accounts Receivable Estimated % Uncollectible Total Uncollectible 0-30 days 3680 $368,000 1% 31-60 days 4800 $120,000 4% 61-90 days $72,000 10% 7200 Over 90 days $40,000 20% $600,000 16680 a) Complete the "Total uncollectible" by multiplying the Accounts Receivable by the Estimated % Uncollectible b) Prepare the adjusting journal entry at December 31 to record bad bebt expense, assuming the allowance account has a credit balance of $3,600 before adjustments. c) The company got word that an account for $6320 will definitely be uncollectible in the future. Do the journal entry to record this write off. d) Your legal team has recovered $5110 from an account that was previously written off and is collectible in the future. Do the journal entry to record this recovery. A/R less all

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Development Finance Innovations For Sustainable Growth

Authors: Nicholas Biekpe, Danny Cassimon, Andrew William Mullineux

1st Edition

331954165X, 978-3319541655

More Books

Students also viewed these Finance questions