nework Saved E6-23 (Algo) Recording, Reporting, and Evaluating a Bad Debt Estimate Using Aging Analysis L06-2 Brown Cow Dairy uses the aging approach to estimate bad debt expense. The ending balance of each account receivable is aged on the basis of three time periods as follows: (1) not yet due. $13,000: (2) up to 120 days past due, $6.000; and (3) more than 120 days past due, $5,500. Experience has shown that for each age group, the average loss rate on the amount of the receivables at year-end due to uncollectibility is (1) 2 percent. (2) 12 percent, and (3) 30 percent, respectively. At December 31 (end of the current year), the Allowance for Doubtful Accounts balance is $710 (credit) before the end-of-period adjusting entry is made. Data during the current year follow. a. During December , an Account Receivable (Patty's Bake Shop) of $660 from a prior sale was determined to be uncollectible: therefore, it was written off immediately as a bad debt. b. On December 31, the appropriate adjusting entry for the year was recorded. Required: 1. Give the required journal entries for the two items listed above. 2. Show how the amounts related to Accounts Receivable and Bad Debt Expense would be reported on the income statement and balance sheet for the current year. Disregard income tax considerations, Complete this question by entering your answers in the tabs below. Reg 1 Reg 2A Reg 28 Give the required journal entries for the two items listed above. (If no entry is required for a transaction/event select "No journal entry required" in the first account field.) View transaction list Journal entry worksheet 2 Record the entry to write off an account receivable determined to be uncollectible mework Surved 2 Show how the amounts related to Accounts Receivable and Bad Debt Expense would be reported on the income statement and balance sheet for the current year. Disregard income tax considerations. Complete this question by entering your answers in the tabs below. Reg 1 Req 2A Reg 28 Give the required journal entries for the two items listed above. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) View transaction list Journal entry worksheet Record the entry to write off an account receivable determined to be uncollectible. Note: Enter debits before credits Credit Date December 31 Debit 660 General Journal Allowance for doubtful accounts Accounts receivable (Patty's Bake Shop) Bad debt expense Allowance for doubtful accounts 680 Record entry Clear entry View general journal mework E6-23 (Algo) Recording, Reporting, and Evaluating a Bad Debt Estimate Using Aging Analysis LO6-2 Brown Cow Dairy uses the aging approach to estimate bad debt expense. The ending balance of each account receivable is aged on the basis of three time periods as follows: (1) not yet due, $13.000:(2) up to 120 days past due. $6,000, and (3) more than 120 days past due, $5,500. Experience has shown that for each age group, the average loss rate on the amount of the receivables at year-end due to uncollectibility is (12 percent. (2) 12 percent, and (3) 30 percent, respectively. At December 31 (end of the current year), the Allowance for Doubtful Accounts balance is $710 (credit) before the end-of-period adjusting entry is made Data during the current year follow: a. During December, an Account Receivable (Patty's Bake Shop) of $660 from a prior sale was determined to be uncollectible: therefore, it was written off immediately as a bad debt. b. On December 31, the appropriate adjusting entry for the year was recorded. Required: 1. Give the required journal entries for the two items listed above. 2. Show how the amounts related to Accounts Receivable and Bad Debt Expense would be reported on the income statement and balance sheet for the current year Disregard income tax considerations. Complete this question by entering your answers in the tabs below. R1 Req 2A Reg 28 Show how the amounts related to Accounts Receivable and Bad Debt Expense would be reported on the income statement for the current year. Disregard income tax considerations. BROWN COW DAIRY Income Statement (Paris) For the Year Ended December 31 Operating expenses re to search mework Saved E6-23 (Algo) Recording, Reporting, and Evaluating a Bad Debt Estimate Using Aging Analysis LO6-2 Brown Cow Dairy uses the aging approach to estimate bad debt expense. The ending balance of each account receivable is aged on the basis of three time periods as follows: (1) not yet due, $13,000: (2) up to 120 days past due, $6,000, and (3) more than 120 days past due, $5,500. Experience has shown that for each age group, the average loss rate on the amount of the receivables at year-end due to uncollectibility is (1) 2 percent. (2) 12 percent, and (3) 30 percent, respectively At December 31 (end of the current year), the Allowance for Doubtful Accounts balance is $710 (credit) before the end-of-period adjusting entry is made. Data during the current year follow: a. During December, an Account Receivable (Patty's Bake Shop) of $660 from a prior sale was determined to be uncollectible, therefore, it was written off immediately as a bad debt. b. On December 31, the appropriate adjusting entry for the year was recorded. Required: 1. Give the required journal entries for the two items listed above. 2. Show how the amounts related to Accounts Receivable and Bad Debt Expense would be reported on the income statement and balance sheet for the current year. Disregard income tax considerations. Complete this question by entering your answers in the tabs below. Reg 1 Req 2A Reg 2B Show how the amounts related to Accounts Receivable and Bad Debt Expense would be reported on the balance sheet for the current year. Disregard income tax considerations. (Amounts to be deducted should be indicated by a minus sign.) BROWN COW DAIRY Balance Sheet (Partial) As of December 31 Current assets: $ 0
