Question
Use the following information and complete required items 1-3 The accounts receivable listing of FoxDen Inc. shows the following on December 31, 2020. The general
| Use the following information and complete required items 1-3 | ||||
| The accounts receivable listing of FoxDen Inc. shows the following on December 31, 2020. | ||||
| The general ledger showed a $250 credit balance in Allowance for Doubtful Accounts before adjustment | ||||
| Name of customer | Invoice date | Amount | ||
| Cycles Inc. | March 5, 2020 | $950 | ||
| First Corporation | August 12, 2020 | 500 | ||
| First Corporation | December 10, 2020 | 550 | ||
| Garron Inc. | December 15, 2020 | 200 | ||
| Heartwell Inc. | August 15, 2020 | 480 | ||
| Heartwell Inc. | July 5, 2020 | 915 | ||
| Leash Inc. | May 5, 2020 | 575 | ||
| Sign Corporation | December 15, 2020 | 825 | ||
| Spares Inc. | November 18, 2020 | 325 | ||
| Summer Corporation | October 10, 2020 | 650 | ||
| Required: | ||||
| 1. Prepare an aging of accounts receivable at December 31, 2020 | ||||
| 2. Compute estimated loss based on the following: | ||||
| Age (days) | Estimated Loss Percentage | |||
| 1-30 | 2% | |||
| 31-60 | 3% | |||
| 61-90 | 5% | |||
| 91-120 | 10% | |||
| 121-150 | 25% | |||
| Over 150 | 50% | |||
| 3. Pepare journal entry to record the bad debt expense for the year. | ||||
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Fundamental Accounting Principles
Authors: John J Wild, Ken Shaw
25th Edition
1260247988, 978-1260247985
