At December 1, 2023, Imalda Inc. reported the following information on its statement of financial position:Accounts receivableAllowance for doubtfulaccounts$154,0004,500 (credit balance)The following transactions were completed during December 2023:December 5 Sold merchandise items for $67,000. An amount of $19,000 was received incash and the rest on account; terms 2/10, n/60. The total cost of saleswas $35,000.December 12 Collected amount due from customers for credit sales made on December 5.December 20 Collected $90,000 in cash from customers for credit sales made in November2023.December 26 One of Imalda's customers that owed $3,000 to the company experiencedfinancial problems and was forced to close its business in December. Thefull amount was considered uncollectible.TotalEstimated %uncollectibleThe company records sales revenue net of the sales discount. If a customer pays after the discount period, the salesdiscount that is forfeited is recorded in a separate account (sales discounts forfeited) and closed to sales revenue at theend of the accounting period.Aging of Accounts Receivable1-30 dayspast due past due$31,500$5,000Current$42,0001%2%31-60days10%Over 60dayspast due$6,50030% 2-a. Using the aging schedule, compute the bad debt expense for December 2023.Bad debtexpenseNo1$2-b. Prepare the journal entry to record bad debt expense for December 2023. (If no entry is required for atransaction/event, select "No journal entry required" in the first account field.)✓DateDec. 312,000General JournalBad debt expenseAllowance for doubtful accountsDebit2,000XCredit2,000X

A bad debt expense is recognized when a receivable is no longer collectible because a customer is…

2-a. Using the aging schedule, compute the bad debt expense for December 2023. Bad debt expense $ 2,000 2-b. Prepare the journal entry to record bad debt expense for December 2023. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)

2-a. Using the aging schedule, compute the bad debt expense for December 2023. Bad debt expense $ 2,000 2-b. Prepare the journal entry to record bad debt expense for December 2023. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Vishnu