Question

HW 1: Central Texas Plumbing Supply had the following account balances as of Nov. 30, 2018: Accounts Receivable $85,000 and Allowance for Bad Debts had a credit balance of $4,200. On December 7, the company wrote off the following as uncollectible: JoJo Plumbers, $800 and HiWater Plumbing, $400. Requirement 1: Journalize the write off. General Journal Account Name Debit Credit Accounts Receivable - JoJo Plumbers Accounts Receivable - HiWater Plumbers (wrote off uncollectible accounts) During the month of December several additional sales on account took place and a number of payments on account came in to the company but no other accounts were written off as uncollectible. On December 31, an Aging of Accounts schedule was prepared in as part of process for recording year-end bad debts expense based on aging of accounts receiving method of estimation. A summary (no names listed) of the schedule used to identify the target balance follows: Requirement 2: calculate the target and journalize the adjusting entry Aging of Account Receivable as of December 31 Target Accounts Receivable 1-30 Days 31-60 Days 61-90 Days Over 90 Days $120,000 Total 70,000 30,000 15,000 5,000 Estimated % Uncollectible 4% 20% 25% Total Estimated Uncollectible $ 210 3,000 .3% The T account for Allowance for Bad Debt is used to analyze the activity and required entry in the account Allowance for Bad Debts Dec 7 1,2004,200 Nov 30 3,000 unadjusted Dec. 31 bal. adjusting entry below

6.

What is the amount of the adjusting entry?

7.

After making the adjusting entry, what is the Allowance for Bad Debts account balance as of Dec.31?

8.

What is the maturity value amount for Note #2?

9.

What day in January is note #3 due? (include only the day number)

10.

What is the account title of the account that should be credited?

Answer 1

Solution of one independent question Central Texas Plumbing Supply Journal Entry Allowance for doubtful debts 1200 AR - JOJO plumbers AR - Hiwater plumbers 800 400 1- 30 days 31 - 60 days 61-90 Over 90 days Aging schedule Totals Allowance % Allowance needed 70000 0.30% 210 30000 4% 1200 15000 20% 3000 5000 25% 1250 5660 Dec. 7 Allowance for doubtful debts 1200 4200 Nov.30 3000 Unadj. Dec. 31 bal. 2660 Adjustment 5660 Adjusted balance Adjusting entry Bad debt exp. Allowance for doubtful debts 2660 2660 Req. 3 Balance sheet partial) Current assets: AR Less:- Allowance Net real. Value 120000 5660 114340 Please ask other question separately as you are supposed to ask one question per post.