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please answer questions on an excel sheet Problem 3 Crout Corporation uses the allowance method of accounting for bad debts and has used a historical
please answer questions on an excel sheet
Problem 3 Crout Corporation uses the allowance method of accounting for bad debts and has used a historical rate of 3.5 percent of credit sales to estimate this expense. The aging schedule of Crout's accounts receivable at the end of the current year appears as follows: Probability Amount of Collection Days Outstanding 0-30 days 31-60 days 61-90 days Over 90 days 95% 90% 72% $1,770,000 240,000 106,000 53,000 50% Total credit sales for the current year were $5,800,000. The allowance account had a credit balance of S62,500 at the beginning of the current year, and accounts totaling $69,500 were written off during the current year. A receivable in the amount of $4,600 that was written off in the previous year was collected in the current year Required Calculate the bad debt expense for the current year if Crout continues to use the percentage-of-sales method to estimate its bad debt expense. Calculate the ending balance in the allowance for doubtful accounts. b) a) Calculate the bad debt expense for the current year if bad debt expense is based on an aging of the accounts receivablc. Problem 4 Robin Manufacturing factored $360,000 of their accounts receivable to General Factor Corp., on a without recourse basis. The receivables are transferred to General Factor, who takes over the full responsibility of collection. General Factor charged a finance charge of 3% of the dollar value of the receivables, and withheld 5 % of the receivable value. Required a) Prepare the general journal entry to reflect this transaction on Robin's books. b) Prepare the general journal entry to reflect this transaction on General Factor's books Step by Step Solution
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