Question

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 TEXT (b) Prepare the year-end adjusting journal entry to record the bad debts using the aged uncollectible accounts receivable determined in (a). Assume the current balance in Allowance for Doubtful Accounts is a $8,100 debit. (c) of the above accounts, $4,600 is determined to be specifically uncollectible. Prepare the journal entry to write off the uncollectible account. (d) The company collects $4,600 subsequently on a specific account that had previously been determined to be uncollectible in (c). Prepare the journal entries necessary to restore the account and record the cash collection. (Credit account titles are automatically indented when amount is entered. Do not indent manually.) No Account Titles and Explanation Debit Credit (b) 0 (d) (To reverse write-off.) (To record collection of write off.)

Answer 1

Answer Page No 0 @ Total estimated bad deblo Number of days outstanding I Total Accounts receivable 207,100 7490045600 40,000 25000 418600| % uncollectible 2% 5 % 217. 0-30 31-60 61-90 91-120 over 120 62 96 Estimated tod de 665 $12382 $1558 $2280*2400 $2259 $3885 wim SNC Gredit $20,482 $4600 Journal entries Particular Debit 6) Bad debts expense 20,482 Allowance for dobtful account (12382 +810 (Being allowance for doubtful accounts createdy Allowance for doubtful accounts $4600 Accounts receivable (To record the oncollectible amount a Accounts receivable $ 4600 Allowance for doubtful account (To reverse woite off Cash $4600 Accounts receivable (To record collection of write off $4600 $4600