Question

he trial balance before adjustment of Windsor, Inc. shows the following balances: Dr. Cr. Accounts receivable $104,800 Allowance for doubtful accounts 1,970 Sales revenue (all on credit) $672,000 Sales returns and allowances 29,100

Give the entry for bad debt expense for the current year assuming the allowance should be 4% of gross accounts receivable. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.) Account Titles and Explanation Debit Credit enter an account title enter a debit amount enter a credit amount enter an account title enter a debit amount enter a credit amount SHOW LIST OF ACCOUNTS LINK TO TEXT

Give the entry for bad debt expense for the current year assuming historical records show that, based on accounts receivable aging, the following percentages will not be collected: (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.) Balance Percentage Estimated to Be Uncollectible 0–30 days outstanding $35,200 1% 31–60 days outstanding 47,900 5% 61–90 days outstanding 13,200 12% Over 90 days outstanding 8,500 18% Account Titles and Explanation Debit Credit enter an account title enter a debit amount enter a credit amount enter an account title enter a debit amount enter a credit amount SHOW LIST OF ACCOUNTS LINK TO TEXT

Give the entry for bad debt expense for the current year assuming allowance for doubtful accounts is $1,970 but it is a credit balance and the allowance should be 4% of gross accounts receivable. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.) Account Titles and Explanation Debit Credit enter an account title enter a debit amount enter a credit amount enter an account title enter a debit amount enter a credit amount SHOW LIST OF ACCOUNTS LINK TO TEXT

Give the entry for bad debt expense for the current year assuming allowance for doubtful accounts is $1,970 but it is a credit balance and historical records show that the following percentages will not be collected: (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.) Balance Percentage Estimated to Be Uncollectible 0–30 days outstanding $35,200 1% 31–60 days outstanding 47,900 5% 61–90 days outstanding 13,200 12% Over 90 days outstanding 8,500 18% Account Titles and Explanation Debit Credit enter an account title enter a debit amount enter a credit amount enter an account title enter a debit amount enter a credit amount

Answer 1

Allowance at 4% on Gross Accounts Receivable ($104,800*4/100)	$4,192
Add: Debit balance of allowance for doubtful accounts	$1,970
Bad Debt Expense	$6,162
Journal Entry:
Accounts Titles and Explanation	Debit	Credit
Bad Debt Expense	$6,162
Allowance for Doubtful Accounts		$6,162
(To record the bad debt expense)

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	Balance (a)	Percentage Estimated to be Uncollectible (b)	Total (a*b)
0-30 days outstanding	$35,200	1%	$352
31-60 days outstanding	$47,900	5%	$2,395
61-90 days outstanding	$13,200	12%	$1,584
Over 90 days outstanding	$8,500	18%	$1,530
	$104,800		$5,861
Add: Debit balance of allowance for doubtful accounts			$1,970
Bad Debt Expense			$7,831

Journal Entry:
Accounts Titles and Explanation	Debit	Credit
Bad Debt Expense	$7,831
Allowance for Doubtful Accounts		$7,831
(To record the bad debt expense)

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Allowance at 4% on Gross Accounts Receivable ($104,800*4/100)	$4,192
Less: Debit balance of allowance for doubtful accounts	($1,970)
Bad Debt Expense	$2,222

Journal Entry:
Accounts Titles and Explanation	Debit	Credit
Bad Debt Expense	$2,222
Allowance for Doubtful Accounts		$2,222
(To record the bad debt expense)

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	Balance (a)	Percentage Estimated to be Uncollectible (b)	Total (a*b)
0-30 days outstanding	$35,200	1%	$352
31-60 days outstanding	$47,900	5%	$2,395
61-90 days outstanding	$13,200	12%	$1,584
Over 90 days outstanding	$8,500	18%	$1,530
	$104,800		$5,861
Less: Credit balance of allowance for doubtful accounts			($1,970)
Bad Debt Expense			$3,891

Journal Entry:
Accounts Titles and Explanation	Debit	Credit
Bad Debt Expense	$3,891
Allowance for Doubtful Accounts		$3,891
(To record the bad debt expense)