Question
please help me ASAP!! Molina Company had a $700 credit balance in Allowance for Doubtful Accounts at December 31, 2020, before the current year's provision
please help me ASAP!!
Molina Company had a $700 credit balance in Allowance for Doubtful Accounts at December 31, 2020, before the current year's provision for uncollectible accounts. An aging of the accounts receivable revealed the following:
Estimated Percentage Uncollectible | ||||||
Current Accounts | $120,000 | 1 | % | |||
130 days past due | 20,000 | 3 | % | |||
3160 days past due | 10,000 | 6 | % | |||
6190 days past due | 10,000 | 12 | % | |||
Over 90 days past due | 8,000 | 30 | % | |||
Total Accounts Receivable | $168,000 |
Prepare the adjusting entry on December 31, 2020, to recognize bad debts expense. (Credit account titles are automatically indented when the amount is entered. Do not indent manually.)
Account Titles and Explanation | Debit | Credit |
Assume the same facts as above except that the Allowance for Doubtful Accounts account had a $500 debit balance before the current year's provision for uncollectible accounts. Prepare the adjusting entry for the current year's provision for uncollectible accounts. (Credit account titles are automatically indented when the amount is entered. Do not indent manually.)
Account Titles and Explanation | Debit | Credit |
Assume that the company has a policy of providing for bad debts at the rate of 1% of sales, that sales for 2020 were $550,000, and that Allowance for Doubtful Accounts had a $650 credit balance before adjustment. Prepare the adjusting entry for the current year's provision for bad debts. (Credit account titles are automatically indented when the amount is entered. Do not indent manually.)
Account Titles and Explanation | Debit | Credit |
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