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The following information applies to the questions displayed below.) Jarden Company has credit sales of $2,900,000 for year 2


2. Prepare the adjusting entry to record bad debts expense at December 31, 2017 View transaction list Journal entry worksheet
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Answer #1
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)
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