Question
The following information was taken from the accounts receivable records of Blue Spruce Corporation as at December 31, 2020: Outstanding Balance Percentage Estimated to be
The following information was taken from the accounts receivable records of Blue Spruce Corporation as at December 31, 2020:
Outstanding Balance | Percentage Estimated to be Uncollectible | |||
0 30 days outstanding | $158,600 | 0.5% | ||
31 60 days outstanding | 65,000 | 2.5% | ||
61 90 days outstanding | 41,000 | 4.0% | ||
91 120 days outstanding | 18,200 | 6.5% | ||
Over 120 days outstanding | 4,100 | 10.0% |
(a) Prepare the year-end adjusting entry for bad debt expense, assuming allowance for doubtful accounts had a credit balance of $1,150 prior 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 $4,110 prior 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 | Debit | Credit |
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