ABC Company's accountant had prepared the following schedule for its accounts receivable for its 2019 year-end: Accounts Receivable Amount Proportion expected to Category Default Not yet due $111,000 1% 1-30 days past due 45,000 3% 31-60 days past due 19,500 10% 61-90 days past due Over 90 days past due 4,500 20% 7,500 40% Before adjusting entries are entered, the pre-adjusted balance in the Allowance for Doubtful Accounts at December 31 (year-end date) showed a credit balance of $2,700. Based on the above information, the post adjustment balance in ABC's Allowance for Doubtful Accounts at December 31, 2019 should be Determine the bad debts expense for ABC for 2019 Assume that in January 2020, accounts receivable of $3,456 were written off as and an accounts receivable of $468 that was previously written off_in uncollectible December 2019, was collected. Give the necessary journal entries Debit Credit To write -off uncollectible accounts receivable To collect accounts receivable previously written off
ABC Company's accountant had prepared the following schedule for its accounts receivable for its 2019 year-end: Accounts Receivable Amount Proportion expected to Category Default Not yet due $111,000 1% 1-30 days past due 45,000 3% 31-60 days past due 19,500 10% 61-90 days past due Over 90 days past due 4,500 20% 7,500 40% Before adjusting entries are entered, the pre-adjusted balance in the Allowance for Doubtful Accounts at December 31 (year-end date) showed a credit balance of $2,700. Based on the above information, the post adjustment balance in ABC's Allowance for Doubtful Accounts at December 31, 2019 should be Determine the bad debts expense for ABC for 2019 Assume that in January 2020, accounts receivable of $3,456 were written off as and an accounts receivable of $468 that was previously written off_in uncollectible December 2019, was collected. Give the necessary journal entries Debit Credit To write -off uncollectible accounts receivable To collect accounts receivable previously written off
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:ABC Company's accountant had prepared the following schedule for its accounts receivable for
its 2019 year-end:
Accounts Receivable
Amount
Proportion expected to
Category
Default
Not yet due
$111,000
1%
1-30 days past due
45,000
3%
31-60 days past due
19,500
10%
61-90 days past due
4,500
20%
Over 90 days past due
7,500
40%
Before adjusting entries are entered, the pre-adjusted balance in the Allowance for Doubtful
Accounts at December 31 (year-end date) showed a credit balance of $2,700.
Based on the above information, the post adjustment balance in ABC's Allowance for
Doubtful Accounts at December 31, 2019 should be
Determine the bad debts expense for ABC for 2019
Assume that in January 2020, accounts receivable of $3,456 were written off as
and an accounts receivable of $468 that was previously written off_ in
uncollectible
December 2019, was collected. Give the necessary journal entries
Debit
Credit
To write -off uncollectible accounts receivable
To collect accounts receivable previously written off
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