Question 1 The firm is undecided about which base to use in estimating collectible accounts On December 31, the balance in Accounts Receivable 4,000 and et credit sales amounted to $ 2,000,000 during - An aging analysis of the accounts receivable indicated $ 20.000 that in accounts are expected to be uncollectible past experience has shown that about of net credit sales eventually are uncollectible. the year Prepare the adjusting entries to record estimated bad debts expense using the (1) percentage of sales method (2) the percentage of receivable basis under each of the following independent assumptions la Allowance for Doubtful Accounts has a credit balance $ 500 before adjustment Allowance for Doubtful Accounts has a debit balance $ 350 before adjustment Description Dr O R Date PC Chestion 2 Tech Ltd has a high rate of bad debts. End balance for the allowance for doubtful accounts will be based on the aging schedule shown Before the year end adjustments, the company's allowance for doubtful account $2,000 DR The year-end balance for the allowance for the allowance for doubtful accounts will be based on the aging schedule shown. Complete the table for the estimated amount of bad debt of each aging category Cated Balance timated Amount of Red Debt ss than 200 200 000 20-30 de $100,000 31. deya 20 $20000 51 SONO a) Prepare the journal entry to record bad debt expense at yearend December 31, 2010 Pepare the journal entry to record the write-off of Customer A's account On VS 250 Custom A returns and pay the account in full. Prepare the journal transactions to reverse the write off and record the payment Date DRO Question 3 opening A/R closing A/R net sales $ $ $ 75,000 65,000 300,000 $ $ $ 5,000 $ 68,000 4,000 $ 45,000 100,000 $ 1,000,000 ART DSO Question 4 Before the year end adjustments, Company L's allowance for doubtful accounts balance of $5,000 DR The year-end balance for the allowance for the allowance for doubtful accounts will be based on the aging schedule shown. Complete the table for the estimated amount of bad debt of each aging category Aging Category Bad Debt % Balance Estimated Amount of Bad Debt Less than 20 days 3.00% $100,000 20 - 30 days 10.00% $750,000 31-60 days 15.00% S50.000 61-90 days 22.00% $25,000 90-120 days 35.00% $10,000 120+ days 50.00% $50,000 a) Prepare the journal entry to record bad debt expense at year-end (December 31, 2015), using the balance sheet method. b) Prepare the journal entry to record the write-off of Customer A's account on March 31, 2016 of $ 8,750 c) Customer A returns and pays the account in full. Prepare the journal transactions to reverse the write-off and record the payment. Date Description OR CR YES Itd owes pe $2,500 on an outstanding account Enterprise 01-Jun he negotiates the signing of a note receivable to settle the account. | | 6 months Enterprise agrees to the note receivable i Enterprise has a year end 7% per year. 31-Jul a) record the conversion of a the account receivable to a note receivable b) accrue the interest at year end c) record the payment of note receivable on maturity description date DR CR description date DR CR description date DR CR
