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Number of Days Outstanding | ||||||
Total | 0-30 | 31-60 | 61-90 | 91-120 | Over 120 | |
Accounts receivable (a) | $409,000 | $246,000 | $84,000 | $43,000 | $23,000 | $13,000 |
% uncollectible (b) | 1% | 4% | 5% | 8% | 11% | |
Estimated bad debts (a x b) |
$11,240 [$2,460 + $3,360 + $2,150 + $1,840 + $1,430] |
$2,460 | $3,360 | $2,150 | $1,840 | $1,430 |
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The year-end adjusting journal entry to record the bad debts | ||
Account Titles and Explanation | Debit | Credit |
Bad Debt Expense [$11,240 + $3,900] | $15,140 | |
Allowance for Doubtful Accounts | $15,140 | |
(To record bad debt expense) |
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The journal entry to write off the uncollectible account | ||
Account Titles and Explanation | Debit | Credit |
Allowance for Doubtful Accounts | $4,700 | |
Accounts Receivable | $4,700 | |
(To write off uncollectible receivables ) |
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(c) The journal entries necessary to (1) restore the account and (2) record the cash collection | |||
No. | Account Titles and Explanation | Debit | Credit |
1 | Accounts Receivable | $4,700 | |
Allowance for Doubtful Accounts | $4,700 | ||
2 | Cash | $4,700 | |
Accounts Receivable | $4,700 |
Pearl Industries uses the allowance method of accounting for bad debts. The company produced the following...
CALCULATOR PRINTER VERSION BALK Problem B-1A Sarasota Corp. uses the allowance method of accounting for bad debts. The company produced the following aging of the accounts receivable Calculate the total estimated bad debts on the below information Number of Days Outstanding Total 0-3031-60 61-90 91-120 Over 120 Accounts Receivable $388,000 $234,000 $82,000 $39,000 $21,000 $12,000 We uncollectible Estimated bad debts EHXSLF ACCOUNTS Prepare the year-end adjusting journal entry to record the bad debts using the aged uncollectible accounts receivable determined...
Problem 9-04A a-d (Video) Windsor Inc. uses the allowance method to estimate uncollectible accounts receivable. The company produced the following aging of the accounts receivable at year-end. Calculate the total estimated bad debts based on the below information. Number of Days Outstanding Total 0-30 31-60 61-90 91-120 Accounts receivable 207,100 77,900 45,600 40,000 25,100 % uncollectible 2% 5% 6% 9% Estimated Bad debts $ $ $ $ $ Over 120 $18,500 21% $ $ SHOW LIST OF ACCOUNTS LINK TO...
Problem 9-04A a-d (Video) Whispering Inc. uses the allowance method to estimate uncollectible accounts receivable. The company produced the following aging of the accounts receivable at year-end. Calculate the total estimated bad debts based on the below information. Number of Days Outstanding Total 0–30 31–60 61–90 91–120 Over 120 Accounts receivable 276,800 92,000 60,700 53,300 38,600 $32,200 % uncollectible 1% 4% 5% 8% 20% Estimated Bad debts $ $ $ $ $ $ SHOW LIST OF ACCOUNTS LINK TO TEXT...
Wildhorse Co. uses the percentage-of-receivables basis to record bad debt expense and concludes that 3% of accounts receivable will become uncollectible. Accounts receivable are $382,600 at the end of the year, and the allowance for doubtful accounts has a credit balance of $2,613. (a) Prepare the adjusting journal entry to record bad debt expense for the year. (b) If the allowance for doubtful accounts had a debit balance of $903 instead of a credit balance of $2,613, prepare the adjusting...
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he trial balance before adjustment of Windsor, Inc. shows the following balances: Dr. Cr. Accounts receivable $104,800 Allowance for doubtful accounts 1,970 Sales revenue (all on credit) $672,000 Sales returns and allowances 29,100 Give the entry for bad debt expense for the current year assuming the allowance should be 4% of gross accounts receivable. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles...
On July 1, 2019, Crane Company purchased new equipment for $90,000. Its estimated useful life was 7 years with a $13,000 salvage value. On January 1, 2022, before making its depreciation entry for 2022, the company estimated the remaining useful life to be 10 years beyond December 31, 2022. The new salvage value is estimated to be $5,000. Prepare the journal entry to record depreciation on December 31, 2019. (Credit account titles are automatically indented when amount is entered. Do...
Journalize the adjusting entry for bad debts at December 31, 2021. Post the adjusting entry for bad debts at December 31, 2021. Journalize the 2022 transactions: (Credit account titles are automatically indented when amount is entered. Do not indent manually.) 1. March 1, a $570 customer balance originating in 2021 is judged uncollectible. 2. May 1, a check for $570 is received from the customer whose account was written off as uncollectible on March 1. Post to the allowance account...
The ledger of Marin Inc. at the end of the current year shows Accounts Receivable $86,000; Credit Sales $800,000; and Sales Returns and Allowances $44,000. (a) If Marin uses the direct write-off method to account for uncollectible accounts, journalize the adjusting entry at December 31, assuming Marin determines that Matisse’s $700 balance is uncollectible. (b) If Allowance for Doubtful Accounts has a credit balance of $1,300 in the trial balance, journalize the adjusting entry at December 31, assuming bad debts...