Question

The following summarizes the aging of accounts receivable for Johnston Supplies, Inc. as of July 31, 2019: Historical Uncollectible Number of Days Unpaid Not yet due 1-30 days past due 31-60 days past due Over 60 days past due Total Accounts Receivable $127, 100 89,800 54,200 32,400 113 178 Required: a. The unadjusted balance of the Allowance for Doubtful Accounts of Johnston Supplies, Inc. is a credit balance in the amount of $29,127 on July 31, 2019. Prepare the required adjusting entry to record Bad Debt Expense for the year. b. Johnston Supplies, Inc. writes off $3,141 of uncollectible accounts on August 15, 2019. Prepare the required adjusting entry to record the write-off. c. Use a T-account to determine the account balance in the Allowance for Doubtful Accounts on August 15, 2019. Complete this question by entering your answers in the tabs below. Required A Required B Required C Use a T-account to determine the account balance in the Allowance for Doubtful Accounts on August 15, 2019. Allowance for Doubtful Accounts 29,127 Unadjusted Balance at 7/31/19 3.141 6,613 35,740 3.141

Answer 1

B A C a. 2 Estimated uncollectible amount: 3 Not vet due 4 1-30 days past due 531-60 days past due 6 Over 60 days past đue 7 Total estimated uncollectible amount Less: Credit balance in allowance for 8 doubtful account 9 Bad debt expense $5,084 $9,878 $9,214 $11,664 $35,840 $29,127 $6.713 10 Account Titles and Explanation Credit 11 Debit 12 Bad debt expense $6,713 Allowance for doubtful 14 (To record bad debt expense) $6,713 13 account 15 16 b Account Titles and Explanation 17 Debit Credit 18 Allowance for doubtful Accounts receivable 20 (To record accounts written off) $3,141 accounts 19 $3,141 21 22 c. Allowance for Doubtful accounts 23 $29,127 Unadjusted balance at 7/31/19 $6,713 Bad debt expense 24 Accounts written off $3,141 25 26 $32,699 Closing balance 27

Calculations are shown below A D a. 2 Estimated uncollectible amount 3 Not yet due 4 1-30 days past đue 5 31-60 days past due 6 Over 60 days past due 7 Total estimated uncollectible amount Less: Credit balance in allowance for 8 doubtful account - 127100 4% - 89800 11% -54200*17% - 32400 36% -SUM(B3B6) 29127 =B7-B8 Bad debt expense 9 10 Account Titles and Explanation 12 Bad debt expense Debit Credit 11 =B9 =B12 13 Allowance for doubtful account 14 (To record bad debt expense) 15 16 b Account Titles and Explanation 18 Allowance for doubtful accounts Accounts receivable 20 (To record accounts written off) 17 Debit Credit 3141 =B18 19 21 22 c 23 Allowance for Doubtful accounts Unadjusted balance at 7/31/19 Bad debt expense 24 Accounts written off =B18 29127 -C13 25 26 C24+C25-B24 Closing balance 27