Question

inchado $300 credit balance in Allowance for Doubtful Accounts at December 31, 2022, before the current year's provision for collectible accounts. An aging of the accounts receivable revealed the following Estimated Percentage Uncollectible Current Accounts $160,000 1-30 days past de 16,000 31-60 days paste 11.500 61-90 days past due 7.600 Over 90 days past due 10,000 Total Accounts Receivable $205.100 Your a wer is partially correct Prepare the adjusting entry on December 31, 2022, to recognize bad debts expense. Credit accounts are automatically Indented when the amount is entered Do not indent manually Account Titles and Explanation Debit Credit ad Debt Expense Allowance for Doubtful Accounts

Answer 1

Journal Entry for estimated Bad Debts Expense if there is Credit Balance of $300 in Allowance for Doubtful Accounts

Calculation of Amount of Estimated Bad Debts Expense: Estimated Percentage 1% 3% 5% 20% 32% Estimated Amount $160,000.00 $16,000.00 $11,500.00 $7,600.00 $10,000.00 $205,100.00 Amount $1,600.00 $480.00 $575.00 Current Accounts 1 - 30 days past due 31 - 60 days past due 61 - 90 days past due Over 90 days past due $1,520.00 $3,200.00 $7,375.00 Total Accounts Receivable

Journal Entries Account Title and Explaination Date Post. Debit Credit Ref. S Bad Debts Expense ($7375-$300) 7,075.00 7,075.00 Allowance for Doubtful Accounts $ (To record adjusting entry to recognize bad debts expense)

Journal Entry for estimated Bad Debts Expense if there is $300 Debit Balance in Allowance for Doubtful Accounts

Bad Debts Expense ($7375+$300) 7,675.00 $ Allowance for Doubtful Accounts 7,675.00 (To record adjusting entry to recognize bad debts expense)