P91A The September 30, 2020, balance sheet of Kroenke Products reported the following:

1-11 Full Alternative Text During the last quarter of 2020, Kroenke Products completed the following selected transactions:

Dec. 30 Wrote off the following accounts receivable as uncollectible: Barry White, $2,500; Carlos Media, $2,200; and Doug Zabellos, $1,100. 31 Recorded bad debt expense (rounded up to the nearest dollar) based on the aging of accounts receivable, as follows:

1-12 Full Alternative Text Required Record the transactions in the general journal.

Open the Allowance for Doubtful Accounts three-column ledger account and post entries affecting that account. Keep a running balance.

Most companies report two-year comparative financial statements. If Kroenke Products Accounts Receivable balance was $320,000 and the Allowance for Doubtful Accounts stood at $12,000 at December 31, 2019, show how the company will report its Accounts Receivable in a comparative balance sheet for 2020 and 2019.

Suppose, on December 31, the bad debt expense was based on an estimate of 4 percent of the accounts receivable balance rather than on the aging of accounts receivable. Record the December 31, 2020, entry for bad debt expense in the general journal.

2

Using the percent-of-sales and aging-of-accounts-receivable approaches for uncollectibles

3. Accounts Receivable, net in 2020, $319,361