Requirement a
Amount of adjustment = $25,900.
.
Requirement b
Ending balances
Accounts receivable | $ 775,000.00 |
Allowance for doubtful accounts | $ 32,900.00 |
Bad debts expense | $ 25,900.00 |
.
Requirement c
Cash (net) realizable value | $ 742,100.00 |
Working
Estimated balance of allowance for uncollectables | $ 32,900.00 | Cr |
Balance in Allowance for uncollectable account (Cr) | $ 7,000.00 | Cr |
Total bad debts to be recorded | $ 25,900.00 | Cr |
Entry to be recorded for adjustment of bad debts
Transaction | General Journal | Debit | Credit |
(a) | Bad debts expense | $ 25,900.00 | |
Allowance for doubtful accounts | $ 25,900.00 | ||
(To record bad debts expense) |
.
Accounts receivable | $ 775,000.00 |
Less: Allowance for doubtful accounts | $ 32,900.00 |
Cash (net) realizable value | $ 742,100.00 |
analysis of recievables method Analysis of Receivables Method At the end of the current year, Accounts...
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