Question

Chapter 7 Problems i Saved [The following information applies to the questions displayed below.] On December 31, Jarden Co.'s Allowance for Doubtful Accounts has an unadjusted credit balance of $16.000. Jarden prepares a schedule of its December 31 accounts receivable by age. Part 2 of 2 Accounts Receivable $ 900,000 360,000 72,000 36,000 14,400 2.5 points Age of Accounts Receivable Not yet due 1 to 30 days past due 31 to 60 days past due 61 to 90 days past due Over 90 days past due Expected Percent Uncollectible 1.15% 1.90 6.40 32.25 67.00 Skipped 2. Prepare the adjusting entry to record bad debts expense at December 31. (Round percentage answers to nearest whole percent. Do not round intermediate calculations.) eBook Print View transaction list Journal entry worksheet Record the estimated bad debts. Note: Enter debits before credits. General Journal Debit Credit Date Dec 31 Record entry Clear entry View general journal

Answer 1

Ans. 2	No.	General Journal	Debit	Credit
		Bad debt expense	$27,056
		Allowance for doubtful accounts		$27,056
		(To record bad debts expenses)
	*Bad debts expense = Estimated balance of allowance for un collectibles - Un adjusted credit balance
		$43,056 - $16,000
		$27,056
	*Working Note:
	Age group	Accounts receivables	Percent un collectible	Amount uncollectible
	Not due	$900,000	1.15%	$10,350
	1 to 30	$360,000	1.90%	$6,840
	31 to 60	$72,000	6.40%	$4,608
	61 to 90	$36,000	32.25%	$11,610
	Over 90	$14,400	67.00%	$9,648
	Estimated balance of allowance for un collectibles			$43,056
	*Amount un collectible = Accounts receivable * Percentage un collectibles