Question
on december 31,2020 the rocket inc. general ledger contained the following balances prior to adjustments: account receivable $369780 allowance for doubtful accounts $3480(credits) net credit
on december 31,2020 the rocket inc. general ledger contained the following balances prior to adjustments:
account receivable $369780
allowance for doubtful accounts $3480(credits)
net credit sales $917400
Before completing an aging analysis to determine the estimated account uncollectible, Rocket decided to write off $3900 of an account past due over 360 days.
aging of the account receivable balance after the write off on dec.31 indicated the following
age | amount | uncollectible |
under 30 days | $200280 | 1.5% |
30-90 days 91-180 days 181-360 days over 360 days
| $93600 $51600 $14400 $3000 total: $365880 | 3.0% 7% 20% 60% |
Required:
A. prepare the necessary journal entry to record the write off $3900
B. Prepare the adjusting journal entry at dec.31 to record Rocket inc's estimated bad debts assuming that the company uses the aging the accounts receivable method.
C. What is the net realizable value of accounts receivable on the dec.31,2022 balance sheet?
D. A customer, whose $1800 accounts receivable had been written off, has paid the amount in full on Jan.10,2021. Prepare the journal entry, or entries, to record the recovery of the accounts receivable previously written off.
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