Question

AalBbCcDd AaBbCcDd AaBE AaBbC AaBbC AaBbC AaBbCcDd Aaßb- A A Aa A 7 AEB L 2 FIFO. LIFO. AVERAGE COST I BONUS QUESTION: At 1/1/2019 the allowance had a debit balance of 5600. Jackson Inc. wrote off $23,000 of customer accounts on Jun5, 2019. Customers repaid Johnson $18,500 of the accounts that were written off on August 20, 2019. At 12/31/2019 AR was 250,000 and estimated amount uncollectible was 15 %. Jackson uses the allowance method for write offs. (3 points total) Given the above answer the following questions 1. What was the balance in the allowance account before adjustment( debit or credit) 2. What is bad debt expense at 12/31/2019? 3. What is the ending balance in the allowance account at 12/31/2019

Answer 1

ALLOWANCE ACCOUNT

DEBIT SIDE    CREDIT SIDE

TO BALANCE B/D $80 BY JONSHAN $23000

TO CUSTOMER $18500 BY BALANCE C/D $3884

TO BAD DEBTS $536

ASSUMPTION : I M ASSUMING THAT THAT THE DOLLAR TO RUPEES CONVERSION RATE IS RS 70 PER DOLLAR , AND WHEREVER AMOUNT IS NOT WITH DOLLAR AMOUNT ASSUMING AMOUNT SHOWN IN RUPEES.

1. BALANCE OF ALLOWANCE ACCOUNT BEFORE ANY ADJUSTMENT IS $80.

2. BAD DEBT ON 12/31/2019 $536.

3. BALANCE OF ALLOWANCE ACCOUNT AFTER ALL ADJUSTMENT IS $3884 .