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Need computation thanks As of December 31, 2019, Bershire Inc. had accounts receivable valued at $ 275,000 and a bad debt provision account credit balance
Need computation thanks
As of December 31, 2019, Bershire Inc. had accounts receivable valued at $ 275,000 and a bad debt provision account credit balance of $ 0. Net sales on credit for the period were $ 780,000 and cash sales were $ 68,000. Bershire Inc. uses the chronological age of accounts method according to the following rules to determine the allowance for doubtful accounts: Age of accounts / Amount / Percentage deemed irrecoverable Current 150 000$ 1% 31-60 days 50 000$ 5% 61-90 days 40 000$ 10% 91-120 days 25 000$ 25% More than 120 days 10 000$ 50% Question: Prepare the accrual entry on December 31 to adjust the allowance account for bad debts Step by Step Solution
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