Question

Worldwide Marble Importers had the following balances at December 31, 2024, before the year-end adjustments: Click the icon to view the balances) The aging of accounts receivable yinlds the following dates Click the icon to view the accounts receivable aging schedule.) Requirements Requirement 1. Journalize Worldwide's entry to record bad debts expense for 2024 using the aging-of-receivables method. (Record debits first, then credits. Select the explanation on the last line of the journal entry table) Date Accounts Credit Dec Debit 31

Answer 1

1)
Date	Account titles and Explanations	Debit	Credit
Dec-31	Bad Debts expense	$ 44
	Allowance for Bad Debts		$ 44
	(To record the Bad debts expense )
	Workings:
	Estimated Bad Debt Expense      = ($ 65,000 x 2% ) + ( $ 3,000 x 20% )      =    $ 1,300 + $ 600	$ 1,900
	Less: Allowance for Bad Debts	($ 1,856 )
	Bad debt expense	$ 44
2)
	Allowance for Bad Debts
		$ 1,856	Beg. / Opening Balance
Closing Balance	$ 1,900	$ 44	Bad Debt Expense
	$ 1,900	$ 1,900