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Problem 7-3A Aging accounts receivable and accounting for bad debts LO P2 [The following information applies to the questions displayed below.] Jarden Company has credit
Problem 7-3A Aging accounts receivable and accounting for bad debts LO P2 [The following information applies to the questions displayed below.] Jarden Company has credit sales of $2.20 million for year 2015. On December 31, 2015, the company's Allowance for Doubtful Accounts has an unadjusted credit balance of $16,040. Jarden prepares a schedule of its December 31, 2015, accounts receivable by age. On the basis of past experience, it estimates the percent of receivables in each age category that will become uncollectible. This information is summarized here Age of Accounts Receivable Expected Percent Uncollectible December 31, 2015 Accounts Receivable $ 440,000 Not yet due 1 to 30 days past due 31 to 60 days past due 61 to 90 days past due Over 90 days past due 1.35% 176,000 35,200 17,600 3,520 2.10 6.60 33.25 69.00 Problem 7-3A Part 1 Required: 1. Estimate the required balance of the Allowance for Doubtful Accounts at December 31, 2015, using the aging of accounts receivable method. Accounts Receivable Percent Uncollectible Estimated Uncollectible (###%) Not due: 1 to 30 31 to 60: 61 to 90: %= Over 90: $ Estimated balance of allowance for uncollectibles 0 Problem 7-3A Part 2 2. Prepare the adjusting entry to record bad debts expense at December 31, 2015. (Round your intermediate and final answers to the nearest whole dollar.) View transaction list Journal entry worksheet 1 Record the estimated bad debts. Note: Enter debits before credits. Date General Journal Debit Credit Dec 31 Record entry Clear entry View general journal
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