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Question 10 (7 points) Listen Assume that the year-end of Bridge Corporation is December 31st. Bridge Corporation uses the aging method to record and update
Question 10 (7 points) Listen Assume that the year-end of Bridge Corporation is December 31st. Bridge Corporation uses the aging method to record and update uncollectible accounts from credit sales. Below is the additional information for the year ended December 31, 2019 and all accounts are in normal balance: a. January 1, 2019 balance of accounts receivable was $68,000 and January 1, 2019 balance of allowance for doubtful accounts was $2,700. b. Total revenue, $369,000 and 72% of the total revenue was on credit (on account). C. Cash collections from credit sales totaled $280,000. d. Write-offs of uncollectible accounts receivable amounted to $3,520. e. Recovery of an account receivable that had been previously been written off was $1,638. f. Aging schedule of accounts receivable was: account) C. Cash collections from credit sales totaled $280,000. d. Write-offs of uncollectible accounts receivable amounted to $3,520. e. Recovery of an account receivable that had been previously been written off was $1,638. f. Aging schedule of accounts receivable was: Days Outstanding Outstanding Amount % Estimated to be Uncollectible Within 60 days $45,600 2.00% 61 to 90 days $13,100 9.00% > 90 days $2,280 15.00% Required: 1. Prepare the journal entry to record the recovery of accounts receivable (2 points). 2. Prepare the journal entry to record bad debt at the end of 2019. Show clear calculations (5 points)
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