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PLEASE ASNWER A,B,C,D THANK YOU A company uses the aging of accounts receivable method to estimate its bad debts expense. On December 31 of the
PLEASE ASNWER A,B,C,D THANK YOU
A company uses the aging of accounts receivable method to estimate its bad debts expense. On December 31 of the current year an aging analysis of accounts receivable revealed the following: Estimated Uncollectible 0.5% 2.0 Accounts Receivable $ 620,000 270,000 145,000 55,000 32,000 18,000 $1,140,000 Account Age Not due yet...... 1-30 days overdue.......... 31-60 days overdue............... 61-90 days overdue............ 91-120 days overdue......... Over 120 days overdue.......... Total 8.0 20.0 50.0 70.0 Required: a. Calculate the amount of Allowance for Doubtful Accounts that should be reported on the current year-end balance sheet. b. Calculate the amount of the Bad Debts Expense that should be reported on the current year's income statement, assuming that the balance of the Allowance for Doubtful Accounts on January 1 of the current year was $44,000 and that accounts receivable written off during the current year totaled $49,200. c. Prepare the adjusting entry to record bad debts expense on December 31 of the current year. d. Show how Accounts Receivable will appear on the current year-end balance sheet as of December 31Step by Step Solution
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