Allowance for Bad Debt | |||||
Date | Accounts | Debit Amount | Date | Accounts | Credit Amount |
Jan 1 2015 | Opening Balance | 15,000 | |||
Jan 31 2015 | Account Receivable | 2,000 | Jan 31 2015 | Allowance for Bad Debt Expenses | 2,400 |
Feb 28 2015 | Account Receivable | 1,000 | Feb 28 2015 | Allowance for Bad Debt Expenses | 3,000 |
Mar 31 2015 | Account Receivable | 500 | Mar 31 2015 | Allowance for Bad Debt Expenses | 2,800 |
Apr 30 2015 | Account Receivable | - | Apr 30 2015 | Allowance for Bad Debt Expenses | 2,700 |
May 31 2015 | Account Receivable | 1,300 | May 31 2015 | Allowance for Bad Debt Expenses | 3,100 |
Jun 30 2015 | Account Receivable | 2,500 | May 31 2015 | Account Receivable | 1,800 |
Jul 31 2015 | Account Receivable | 2,500 | Jun 30 2015 | Allowance for Bad Debt Expenses | 3,400 |
Aug 31 2015 | Account Receivable | 2,000 | Jul 31 2015 | Allowance for Bad Debt Expenses | 3,600 |
Sep 30 2015 | Account Receivable | - | Aug 31 2015 | Allowance for Bad Debt Expenses | 2,800 |
Oct 31 2015 | Account Receivable | 1,500 | Sep 30 2015 | Allowance for Bad Debt Expenses | 2,600 |
Nov 30 2015 | Account Receivable | 3,500 | Oct 31 2015 | Allowance for Bad Debt Expenses | 2,900 |
Dec 31 2015 | Account Receivable | 2,000 | Nov 30 2015 | Allowance for Bad Debt Expenses | 3,200 |
Dec 31 2015 | Account Receivable | 12,000 | Dec 31 2015 | Allowance for Bad Debt Expenses | 3,600 |
Dec 31 2015 | Allowance for Bad Debt Expenses | 7,080 | |||
Dec 31 2015 | Balance Carried Forward | 29,180 | |||
59,980 | 59,980 |
Aging | Amount of Receivable | % of allowance required | Amount of Allowance required |
Over 90 Days | 40,000 | 40% | 16,000 |
61-90 Days | 80,000 | 10% | 8,000 |
31-60 Days | 70,000 | 5% | 3,500 |
30 Days or less* | 168,000 | 1% | 1,680 |
Total Allowance Required | 29,180 | ||
Closing Balance of allowance for bad debt | 22,100 | ||
Additional Bad Debt to be created | 7,080 |
The closing balance of account receivable was 370,000 out of which 12,000 is written off. Hence balance 352,000 were there for which aging was required.
C : Total Bad debt expense for the year is 43,180 which is derived by totaling up credit side of Allowance for Bad-debt which has corresponding entry of "Allowance for Bad Debt Expenses"
Week 4 Pre-assignment: Black River Wholesalers Guidance comes from pages 7 and 8 of notebook Black...
Problem 7-4 (Part Level Submission)
From inception of operations to December 31, 2017, Skysong
Corporation provided for uncollectible accounts receivable under
the allowance method. The provisions are recorded, based on
analyses of customers with different risk characteristics. Bad
debts written off were charged to the allowance account; recoveries
of bad debts previously written off were credited to the allowance
account, and no year-end adjustments to the allowance account were
made. Skysong’s usual credit terms are net 30 days.
The balance...
Problem 7-4 (Part Level Submission) From inception of operations
to December 31, 2017, Skysong Corporation provided for
uncollectible accounts receivable under the allowance method. The
provisions are recorded, based on analyses of customers with
different risk characteristics. Bad debts written off were charged
to the allowance account; recoveries of bad debts previously
written off were credited to the allowance account, and no year-end
adjustments to the allowance account were made. Skysong’s usual
credit terms are net 30 days. The balance...
Problem 7-4 (Part Level Submission) From inception of operations to December 31, 2017, Indigo Corporation provided for uncollectible accounts receivable under the allowance method. The provisions are recorded, based on analyses of customers with different risk characteristics. Bad debts written off were charged to the allowance account; recoveries of bad debts previously written off were credited to the allowance account, and no year-end adjustments to the allowance account were made. Indigo's usual credit terms are net 30 days. The balance...
Analysis of Allowance for Bad Debts Boulder View Corporation accounts for uncollectible accounts receivable using the allowance method. As of December 31, 2016, the credit balance in Allowance for Bad Debts was $110,000. During 2017, credit sales totaled $10,000,000, $80,000 of accounts receivable were written off as uncollectible, and recoveries of accounts previously written off amounted to $14,000. An aging of accounts receivable at December 31, 2017, showed the following: Accounts Receivable Balance As of Percentage Estimated Classification of Receivable...
Question 3. Calcuate your answer to the question. (10 points) 5) The following information is from the 2017 records of Albert Book Shop: Accounts receivable, December 31, 2017 Allowance for Bad Debts, December 31, 2017 prior to adjustment Net credit sales for 2017 Accounts written off as uncollectible during 2017 Cash sales during 2017 $47,000 (debit) 1,900 (debit) 180,000 17,000 28,000 Bad debts expense is estimated by the aging-of-receivables method. Management estimates that $5.500 of accounts receivable will be uncollectible....
Problem 7-4 Uncollectible accounts [LO7-5, 7-6] Raintree Cosmetic Company sells its products to customers on a credit basis. An adjusting entry for bad debt expense is recorded only at December 31, the company’s fiscal year-end. The 2017 balance sheet disclosed the following: Current assets: Receivables, net of allowance for uncollectible accounts of $30,000 $432,000 During 2018, credit sales were $1,750,000, cash collections from customers $1,830,000, and $35,000 in accounts receivable were written off. In addition, $3,000 was collected from a...
(1c) $27,000 2 Show how Accounts Receivable and the Allowance for Doubtful Accounts appear on its December 31 3. Show how Accounts Receivable and the Allowance for Doubtful Accounts appear on its December 31 At December 31, Hovak Co.'s Allowance for Doubtful Accounts has an unadjusted debit balance of s past-due c. An aging analysis estimates that 6% of year-end accounts receivable are uncollectible. prg 4 balance sheet given the facts in part la halance sheet given the facts in...
A summary of Klugman Company's December 31, 2018, accounts receivable aging schedule is presented below along with the estimated percent uncollectible for each age group: Age Group 0-60 days 61-90 days 91-120 days Over 120 days Amount $55,000 "19,500 2.500 1.000 5 1.0 10.0 50.0 The allowance for uncollectible accounts had a balance of $1,350 on January 1, 2018. During the year, bad debts of $700 were written off. aces Required: Prepare all journal entries for 2018 with respect to...
3)At December 31, 2010, the trial balance of Worcester Company contained the following amounts before adjustment Debits $385,000 Credits Accounts receivable Allowance for doubtful accounts Sales $2,000 950,000 Based on the information given, which method of accounting for bad debts is Worcester Company using-the direct write-off method or the allowance method? Prepare the adjusting entry at December 31, 2010, for bad debts expense under each of the following independent assumptions (1) An aging schedule indicates that $11.750 of accounts receivable...
$2.400 before write-offs and of 2017, the allowance for doubt adjustments. Morse evaluates its receivable. Morse then prep Morse Company uses the aging method to estimate bad debts. At the allowance for doubtful accounts has a credit balance of $2.400 bet se evaluates its past due accounts and decides to write off $4,000 of a terse then prepares the following aging schedule as of December 31, 2017 counts written oll are not included in the aging schedule that the accounts...