Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Lazer Ltd. prepares an aging schedule for its accounts receivable at each month end and records bad debts expense monthly. At the end of October

image text in transcribed
Lazer Ltd. prepares an aging schedule for its accounts receivable at each month end and records bad debts expense monthly. At the end of October 2020, the company prepares the following aging schedule: Estimated Accounts percentage Number of outstanding receivable uncollectible days 0-30 days (current $ 380,000 2% receivables) 31-60 days 75,000 4% 61-90 days 55,000 10% Over 90 days 30,000 20% Total receivables $ 540.000 B. Given the above information: A. Calculate the total estimated uncollectible accounts. (0.5 marks) Prepare the adjusting journal entry to record bad debts if the unadjusted balance in the Allowance for Doubtful Accounts is a credit balance of $4,200. (2 marks) C Prepare the adjusting journal entry to record bad debts if the unadjusted balance in the Allowance for Doubtful Accounts is a debit balance of $4,200. (2 marks) D. On November 15, 2020, Lazer determined that one of its customers owing $5,800 declared bankruptcy and consequently, the account was uncollectible. Prepare the journal entry to write off the uncollectible account (1.5 marks)

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

Using Equity Audits To Create Equitable And Excellent Schools

Authors: Linda E. Skrla, Kathryn B. McKenzie, James Joseph Scheurich

1st Edition

1412939321, 978-1412939324

More Books

Students also viewed these Accounting questions

Question

5. Describe the relationship between history and identity.

Answered: 1 week ago