Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Winfrey Designs had an unadjusted credit balance in its Allowance for Doubtful Accounts at December 31, 2017, of $1,800. Required: a. Prepare the adjusting entry

Winfrey Designs had an unadjusted credit balance in its Allowance for Doubtful Accounts at December 31, 2017, of $1,800.

Required: a. Prepare the adjusting entry assuming that Winfrey estimates uncollectible accounts based on an aging analysis as follows. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)

December 31, 2017 Accounts Receivable Age of Accounts Receivable Expected Percentage Uncollectible $ 120,000 Not due (under 30 days) 0.75 % 35,000 1 to 30 days past due 4 % 8,000 31 to 60 days past due 10 % 2,000 Over 60 days past due 60 % b. During 2018, credit sales were $1,200,000; sales discounts taken were $22,000; accounts receivable collected were $995,000; and accounts written off during the year totalled $24,000. Prepare the adjusting entry required on December 31, 2018, to estimate uncollectible receivables assuming it is based on the following aging analysis. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) December 31, 2018 Accounts Receivable Age of Accounts Receivable Expected Percentage Uncollectible $ 240,000 Not due (under 30 days) 0.75 % 75,000 1 to 30 days past due 4 % 20,000 31 to 60 days past due 10 % 11,000 Over 60 days past due 60 % c. Show how accounts receivable would appear on the December 31, 2018, balance sheet.

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Financial Accounting International Edition

Authors: Jerry J. Weygandt, Donald E. Kieso, Paul D. Kimmel

6th Edition

978-0470623275

More Books

Students also viewed these Accounting questions