The following is information related to the Accounts Receivable accounts of Gulistan AG during the current year 2019 1 An aging schedule of the accounts receivable as of December 31, 2019, is as follows The not 3,240 write off of receivables is related to the 91 to 120 day category 2 The Accounts R...

Bad Debt Expense 3240 Accounts Receivable 3240 To correct bad debt expense and write off accounts re ...

The following is information related to the Accounts Receivable accounts of Gulistan AG during the current year

Question:

The following is information related to the accounts of Gulistan AG during the current year 2019.
1. An of the as of December 31, 2019, is as follows.

% to Be Applied after Correction Is Made Net Debit Age Balance €172,342 Under 60 days 60-90 days 91-120 days 3% 136,49

* The ‚¬3,240 write-off of receivables is related to the 91-to-120 day category.
2. The Accounts Receivable account has a debit balance of ‚¬372,400 on December 31, 2019.
3. Two entries were made in the Bad Debt Expense account during the year: (1) a debit on December 31 for the amount credited to Allowance for Doubtful Accounts, and (2) a credit for ‚¬3,240 on November 3, 2019, and a debit to Allowance for Doubtful Accounts because of a bankruptcy.
4. Allowance for Doubtful Accounts is as follows for 2019.

Allowance for Doubtful Accounts Nov. 3 Uncollectible accounts written off Jan. 1 Beginning balance 8,750 3,240 Dec. 31 5

5. A credit balance exists in Accounts Receivable (60-90 days) of ‚¬4,840, which represents an advance on a sales contract.
Instructions
Assuming that the books have not been closed for 2019, make the necessary correcting entries.

Accounts Receivable
Accounts receivables are debts owed to your company, usually from sales on credit. Accounts receivable is business asset, the sum of the money owed to you by customers who haven’t paid.The standard procedure in business-to-business sales is that... Aging Schedule
Aging schedule is an accounting table that shows a company’s account receivables. It is an summarized presentation of accounts receivable into a separate time brackets that the rank received based upon the days due or the days past due. Generally...