Question

Crane Company was the w eathed to a colectible s wide. The united balance in Allowance for Dostlul Ar a d 14.000 The company produced the following from bewyearend Core the world that Esmated collectible Emcee the information determined in part(s) (Credit account colectible in art. The company co rea t res a l utomata ly ented when the mount n ditional $1.000. Record the jumaty Corne) restore the cours e and the e d Do not inde manually. If no by owned select Montry for the acco Caleed Collection of the $1.000 expected in the near future. Credi

Answer 1

Calculation of Allowance for Doubtful Accounts and Journal Entry for Recording

Total Accounts Receivable $ 6,20,000 Estimated % uncollectable Estimatted Uncollectable account $ 36,900 0-30 31-60 61-90 91-120 $ 3,70,000 $ 1,30,000 $ 90,000 $ 30,000 10% 30% $ 11,100 $ 7,800 $ 9,000$ 9,000 3% 6%

Credit Date Year End Debit $ 40,900 Particulars Bad Debts Expenses Allowance for Doubtful Accounts |(36900+4000) (To Record Estimate of uncollectable Accounts) $ 40,900 $ 17,000 Following Year Allowance for Doubtful Accounts Accounts Receivable To Record writeoff of accounts Receivable $ 17,000