Question

o receivable for the company is presented below specific couss in 2020 and the scene was 58.000 in 2021 Pesses inc reas ing 400 000 and 15.100.000 for the years anded December 31, 2000 and 2021, espectively t Cick the icon to wow the amounts) The bace these for our counts as of January 1, 2000, was $5.000 into your company we Required Determine the bad dus pense for 2000 Det the mount of written o n 2001 Protheum cord the bad o 2000 D Amount Days outstanding from becedate Begbyge the end of 200 Days out ing w on Current 400000 0 100 0 00 cour t recevabe Over o 10000 % 0.000 40.000 150.000 100 000 10000 000 10000 000 2021 50000 Newslede en the 200 A Choose from arystor enter any number in the input feds and then come to the

Answer 1

a	Determine total Bad Debts expensefor 2020
	Days Outstanding	Current	30-60	61-90	over 90	Total
	Amount	400,000	150000	40000	10000	600,000
	% Not collectible	0.50%	1%	2%	5%
	Estimated Amount uncollectible	2,000.00	1,500.00	800.00	500.00	4,800.00
	Particulars	Amt in $ (2020)
a.	Opening Alowance for Bad debts	5000
	Add : Prov for Bad Debts	4,800.00
	Add :Written off Accounts	6500
	Closing Bad Debts as on 31st Dec 2020	16,300.00
b	Select the formula and compute total recievable writen off during 2021
		Days Outstanding from Invoice date
	Particulars	Current	30-60	61-90	over 90	Total
	Balance in AR a/c as on Dec 31 2020	400000	150000	40000	10000	600000
	Balance in AR a/c as on Dec 31 2021	440000	160000	30000	20000	650000
	% of recievables estimated to be uncollectible	0.50%	1%	2%	5%
	Incremental uncollectible during 2021	40000	10000	-10000	10000	50000
	Writen off during 2021	200	100	-200	500	600
	Journal Entry to record for Bad Debt Expense for 2020
C	General Journal	Debit	Credit
	Bad Debts	4800
	To Provision for Bad Debts		4800
	Being amount uncolectible for Year 2020
	Bad Debts	6500
	To Sundry Debtors		6500
	Being amount of Accounts written off