The following summarizes the aging of accounts receivable for Johnston Supplies, Inc. as of July 31,...

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The following summarizes the aging of accounts receivable for Johnston Supplies, Inc. as of July 31, 2016 Total Accounts | Receivable $127,300 $90,000 $54,400 $32600 Historical % Uncollectible 296 1296 18% 34% Number of Days Unpaid Over 60 days past due Required: a. The unadjusted balance of the Allowance for Doubtful Accounts of Johnston Supplies, Inc. is a credit balance in the amount of $29,187 on July 31, 2016. Prepare the required adjusting entry to record Bad Debt Expense for the year (If no entry is required for a transaction/event, select No Journal Entry Required in the first account field.) View transaction list View journal entry worksheet No Date General Journal Debit Credit 1 July 31, 2016 Bad Debt Expense 6,537 Allowance for Doubtful Accounts 6,537 here to search

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Answer 1

Answer #1

Solution:

1 a) Preparing the Required Adjusting Entry to Record Bad Debt Expense for the Year:

Aging Schedule
	Amount	Allowance (%)	Allowance Needed
Not Yet Due	$127,300	2%	$2,546
1-30 Days	$90,000	12%	$10,800
31-60 Days	$54,400	18%	$9,792
Over 60 Days Past Due	$32,600	34%	$11,084
			$34,222

Date	General Journal	Debit	Credit
July 31, 2016	Bad Debt Expense ($34,222 - $29,187)	$5,035
	Allowance of Doubtful Accounts		$5,035
	(To Record the Bad Debt Expensefor the Year)

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Answer 2

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