Answered step by step
Verified Expert Solution
Question
1 Approved Answer
The trial balance before adjustment of Teal Mountain Inc. shows the following balances: Dr. Cr. Accounts receivable $106,200 Allowance for doubtful accounts 1.970 Sales revenue
The trial balance before adjustment of Teal Mountain Inc. shows the following balances: Dr. Cr. Accounts receivable $106,200 Allowance for doubtful accounts 1.970 Sales revenue (all on credit) $679,000 Sales returns and allowances 30,400 Give the entry for bad debt expense for the current year assuming the allowance should be 3% of gross accounts receivable. (Credit account titles are automatically indented when amount is entered. not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts.) Account Titles and Explanation Debit Credit Bad Debt Expense Give the entry for bad debt expense for the current year assuming historical records show that, based on accounts receivable aging, the following percentages will not be collected: (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 O for the amounts.) Percentage Estimated to Be Uncollectible Balance 0-30 days outstanding $37,900 1% 31-60 days outstanding 45,200 5% 61-90 days outstanding 14,000 12% Over 90 days outstanding 9,100 18% Account Titles and Explanation Debit Credit List of Accounts Give the entry for bad debt expense for the current year assuming allowance for doubtful accounts is $1,970 but it is a credit balance and the allowance should be 3% of gross accounts receivable. (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 O for the amounts.) Account Titles and Explanation Debit Credit List of Accounts Give the entry for bad debt expense for the current year assuming allowance for doubtful accounts is $1,970 but it is a credit balance and historical records show that the following percentages will not be collected: (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 O for the amounts.) Percentage Estimated to Be Uncollectible Balance 0-30 days outstanding $37,900 1% 31-60 days outstanding 45,200 5% 61-90 days outstanding 14,000 12% Over 90 days outstanding 9,100 18% Account Titles and Explanation Debit Credit
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access with AI-Powered Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started