Adjustment for Uncollectible Accounts Below is the aging of receivables schedule for Evers Industries. Aging-of-Receivables Schedule November 30 Customer Balance Not Past Due 1-30 Days Past Due 31-60 Days Past Due 61-90 Days Past Due Over 90 Days Past Due Subtotals 667,400 393,800 146,800 60,100 33,400 33,300 Boyd Industries 11,000 11,000 Hodges Company 16,300 16,300 Kent Creek Inc. 10,100 10,100 Lockwood Company 9,300 9,300 Van Epps Company 31,100 31,100 Totals 745,200 424,900 156,100 70,200 49,700 44,300 Percentage uncollectible 2% 6% 25% 35% 50% Allowance for Doubtful Accounts 74,959 8,498 9,366 17,550 17,395 22,150 Assume that the allowance for doubtful accounts for Evers Industries has a credit balance of $ 15,740 before adjustment on November 30. Journalize the adjusting entry for uncollectible accounts as of November 30. Nov 30 fill in the blank 2 fill in the blank 4
Bad Debts
At the end of the accounting period, a financial statement is prepared by every company, then at that time while preparing the financial statement, the company determines among its total receivable amount how much portion of receivables is collected by the company during that accounting period.
Accounts Receivable
The word “account receivable” means the payment is yet to be made for the work that is already done. Generally, each and every business sells its goods and services either in cash or in credit. So, when the goods are sold on credit account receivable arise which means the company is going to get the payment from its customer to whom the goods are sold on credit. Usually, the credit period may be for a very short period of time and in some rare cases it takes a year.
Adjustment for Uncollectible Accounts
Below is the aging of receivables schedule for Evers Industries.
| Aging-of-Receivables Schedule November 30 |
||||||
|---|---|---|---|---|---|---|
| Customer | Balance | Not Past Due | 1-30 Days Past Due |
31-60 Days Past Due |
61-90 Days Past Due |
Over 90 Days Past Due |
| Subtotals | 667,400 | 393,800 | 146,800 | 60,100 | 33,400 | 33,300 |
| Boyd Industries | 11,000 | 11,000 | ||||
| Hodges Company | 16,300 | 16,300 | ||||
| Kent Creek Inc. | 10,100 | 10,100 | ||||
| Lockwood Company | 9,300 | 9,300 | ||||
| Van Epps Company | 31,100 | 31,100 | ||||
| Totals | 745,200 | 424,900 | 156,100 | 70,200 | 49,700 | 44,300 |
| Percentage uncollectible | 2% | 6% | 25% | 35% | 50% | |
| Allowance for Doubtful Accounts | 74,959 | 8,498 | 9,366 | 17,550 | 17,395 | 22,150 |
Assume that the allowance for doubtful accounts for Evers Industries has a credit balance of $ 15,740 before adjustment on November 30.
Journalize the
| Nov 30 | fill in the blank 2 | ||
| fill in the blank 4 |
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