Question
The following information was taken from the accounts receivable records ofBrambleCorporation as at December 31, 2020: Outstanding BalancePercentage Estimated to be Uncollectible 0 - 30
The following information was taken from the accounts receivable records ofBrambleCorporation as at December 31, 2020:
Outstanding
BalancePercentage Estimated
to be Uncollectible0 - 30 days outstanding$152,0000.5%31 - 60 days outstanding65,6002.5%61 - 90 days outstanding41,6004.0%91 - 120 days outstanding18,2006.5%Over 120 days outstanding4,20010.0%
(a)Prepare the year-end adjusting entry for bad debt expense, assuming allowance for doubtful accounts had a credit balance of $1,120prior to the adjustment.(Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.)
Account Titles and Explanation
Debit
Credit
(b)Prepare the year-end adjusting entry for bad debt expense, assuming allowance for doubtful accounts had a debit balance of $3,900prior to the adjustment.(Round answers to 0 decimal places, e.g. 8,971. Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.)
Account Titles and Explanation
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