Question

Solutions to problems in photos?

ESSAY. Write your answer in the space provided or on a separate sheet of paper. 22) Prepare the adjusting journal entry of Bad Debts Expense from the following information using the income statement approach. Net Sales for the year Balance in the allowance account Estimated percentage of sales uncollectible Estimated uncollectible accounts-aging $300,000 500 credit 1% $2,000 23) Prepare the adjusting journal entry for Bad Debts Expense from the following information using the balanoe sheet approach. Net Sales for the year Balance in the allowance account Estimated percentage of sales uncollectible $250,000 500 credit 1% 3,000 nated uncollectible accounts-aging

Answer 1

22)	Bad debts expense (300000*1%)	3000
	Allowance for uncollectible accounts		3000
23)	Bad debts expense (3000-500)	2500
	Allowance for uncollectible accounts		2500
24)
Dec-31	Bad debts expense	1000
	Allowance for uncollectible accounts		1000
Jan-03	Allowance for uncollectible accounts	50
	Accounts receivable-B.Tom		50
Mar-04	Allowance for uncollectible accounts	75
	Accounts receivable-A.Green		75
Jul-05	Accounts receivable-A.Green	40
	Allowance for uncollectible accounts		40
	Cash	40
	Accounts receivable-A.Green		40
Aug-19	Allowance for uncollectible accounts	130
	Accounts receivable-M.Moss		130
Nov-07	Accounts receivable-B.Tom	25
	Allowance for uncollectible accounts		25
	Cash	25
	Accounts receivable-B.Tom		25
25)
Mar-13	Bad debts expense	180
	Accounts receivable-P.Book		180
Apr-17	Bad debts expense	75
	Accounts receivable-C.Catron		75
Jul-05	Accounts receivable-C.Catron	1400
	Bad debts recovered		1400
	Cash	1400
	Accounts receivable-B.Tom		1400
Jan-09	Accounts receivable-P.Book	180
	Bad debts recovered		180
	Cash	180
	Accounts receivable-P.Book		180
26)	BALANCE SHEET (PARTIAL)
	Current Assets:
	Cash		10000
	Accounts receivable	6000
	Less: Allowance for doubtful accounts	200	5800
	Inventory		200	16000