Question

The Allowance for Doubtful Accounts balance on 1/1/X& is $ 528.00 for the Farrior Hotel. The aged accounts receivables listing as of 12/31/x8 is as follows: CURRENT 30 DAYS 160 DAYS 90 DAYS 120 DAYS Adert 300 200 100|| Bortz 200 250 Carl piker S00 2001 Ebbert 300 1 300 others 26,2005,2002,450 1,600 1,500 The estimated percentage of bad debts is as follows: Current 2% 30 Days 4% 60 Days 10% 90 Days 120 Days 40% 20% Required a) Using the Allowance Method-Aged Accounts Receivable, calculate the balance of the allowance for doubtful accounts as of 12/31/X8. b) Prepare the appropriate journal entry. CURRENT Adert Bort 30 DAYS 60 DAYS 90 DAYS 120 DAYS 300 200 100 200 250 300 500 2001 3001 300 26.200 5 ,200 2,450 1,600 1,500 Diker Ebbert Others Totals BD% Est BD Tol, BD New Allowance Beginning Balance Ending Balance $528 (S528) Journal Entry Date Account Title Debit Credit

Answer 1

	Current	30 days	60 days	90 days	120 days	Total
Adert		300		200	100
Bortz		200	250
Carl	300
Diker	500			200
Ebbert			300		300
Others	26200	5200	2450	1600	1500
Total	27000	5700	3000	2000	1900
% bad debts	2%	4%	10%	20%	40%
$ estimated bad debts	540	228	300	400	760	2228

New allowance	1700
Beginning balance	528
Ending balance	2228

Date	Journal entry	Debit	Credit
12/31/X8	Bad debt expense	1700
	Allowance for doubtful accounts		1700