WORKING NOTES: 1 | ||||||
CALCULATION OF ESTIMATED ALLOWANCE FOR DOUBTFULL ACCOUNTS AS ON DECEMBER 31, 2017 | ||||||
Age Group | Account Receivable | X | Percentage Uncollectable | = | Estimated Uncollectable | |
Not Yet Due | $ 5,80,000 | X | 1.25% | = | $ 7,250 | |
01 to 30 | $ 2,32,000 | X | 2.00% | = | $ 4,640 | |
31 to 60 | $ 46,400 | X | 6.50% | = | $ 3,016 | |
61 to 90 | $ 23,200 | X | 32.75% | = | $ 7,598 | |
Over 90 | $ 4,640 | X | 68.00% | = | $ 3,155 | |
Estimated Balance of Allowance for uncollectables | $ 25,659 | |||||
WORKING NOTES: 2 | ||||||
Allowance for Doubtfull Debts (Opening Bal.) | $ 21,359 | Credit | ||||
Provision for the Allowance of Bad debts = | $ 25,659 | Credit | ||||
Balance need to be provission for the year | $ 4,300 | Credit | ||||
So we can show the bad debts expenses for the year = | $ 4,300 | |||||
SOLUTION : | ||||||
Journal Entries | ||||||
Date | Account Title and explanation | Debit | Credit | |||
December, 31 | Bad Debt Expenses | $ 4,300 | ||||
To Allowance for Doubtful Debts | $ 4,300 | |||||
(Record the bad debt expenses of the year) | ||||||
The following information applies to the questions displayed below.) Jarden Company has credit sales of $2,900,000...
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