weatsubject-Accounting 2. Prepare the journal entry to record bad debt expense. If an amount box does not require an entry, leave it blank.Bad Debt ExpenseAllowance for Doubtful Accounts(Record adjusting entry for bad debt expense estimate)12,83512,8353. If Glencoe had written off $86,000 of receivables as uncollectible during the year, how much would bad debt expensereported on the income statement have changed?47,603 XPreviousNext Bad Debt Expense: Aging MethodGlencoe Supply had the following accounts receivable aging schedule at the end of a recent year.Proportion ExpectedAllowanceto DefaultRequired$1,553475AccountsReceivable AgeCurrent1-30 days past due31-45 days past due46-90 days past due91-135 days past dueOver 135 days past dueAmount$310,50047,50025,00012,8006,1004,2000.0050.010.130.200.250.603,2502,5601,5252,520$11,883The balance in Glencoe allowance for doubtful accounts at the beginning of the year was $50,280 (credit). During theyear, accounts in the total amount of $51,232 were written off.Required:1. Determine bad debt expense.12,835 ✓I2. Prepare the journal entry to record bad debt expense. If an amount box does not require an entry, leave it blank.Bad Debt Expense12,835 ✓Allowance for Doubtful Accounts12,835

The allowance for uncollectible accounts represents the accounts receivable that are not expected to…

Bad Debt Expense: Aging Method Glencoe Supply had the following accounts receivable aging schedule at the end of a recent year. Allowance Required $1,553 475 3,250 2,560 1,525 2,520 $11,883 The balance in Glencoe allowance for doubtful accounts at the beginning of the year was $50,280 (credit). During year, accounts in the total amount of $51,232 were written off. Required: Accounts Receivable Age Current 1-30 days past due 31-45 days past due 46-90 days past due 91-135 days past due Over 135 days past due Amount $310,500 47,500 25,000 12,800 6,100 4,200 1. Determine bad debt expense. 12,835 Proportion Expected to Default 0.005 0.01 0.13 0.20 0.25 0.60 2. Prepare the journal entry to record bad debt expense. If an amount box does not require an entry, leave it blank Bad Debt Expense Allowance for Doubtful Accounts 12,835 I 12,835

Bad Debt Expense: Aging Method Glencoe Supply had the following accounts receivable aging schedule at the end of a recent year. Allowance Required $1,553 475 3,250 2,560 1,525 2,520 $11,883 The balance in Glencoe allowance for doubtful accounts at the beginning of the year was $50,280 (credit). During year, accounts in the total amount of $51,232 were written off. Required: Accounts Receivable Age Current 1-30 days past due 31-45 days past due 46-90 days past due 91-135 days past due Over 135 days past due Amount $310,500 47,500 25,000 12,800 6,100 4,200 1. Determine bad debt expense. 12,835 Proportion Expected to Default 0.005 0.01 0.13 0.20 0.25 0.60 2. Prepare the journal entry to record bad debt expense. If an amount box does not require an entry, leave it blank Bad Debt Expense Allowance for Doubtful Accounts 12,835 I 12,835

Cornerstones of Financial Accounting

4th Edition

ISBN:9781337690881

Author:Jay Rich, Jeff Jones

Publisher:Jay Rich, Jeff Jones

Chapter5: Sales And Receivables

Section: Chapter Questions

Problem 68E: Bad Debt Expense: Aging Method Glencoe Supply had the following accounts receivable aging schedule...

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Concept explainers

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.

Question

weat

subject-Accounting

2. Prepare the journal entry to record bad debt expense. If an amount box does not require an entry, leave it blank.
Bad Debt Expense
Allowance for Doubtful Accounts
(Record adjusting entry for bad debt expense estimate)
12,835
12,835
3. If Glencoe had written off $86,000 of receivables as uncollectible during the year, how much would bad debt expense
reported on the income statement have changed?
47,603 X
Previous
Next

Bad Debt Expense: Aging Method
Glencoe Supply had the following accounts receivable aging schedule at the end of a recent year.
Proportion Expected
Allowance
to Default
Required
$1,553
475
Accounts
Receivable Age
Current
1-30 days past due
31-45 days past due
46-90 days past due
91-135 days past due
Over 135 days past due
Amount
$310,500
47,500
25,000
12,800
6,100
4,200
0.005
0.01
0.13
0.20
0.25
0.60
3,250
2,560
1,525
2,520
$11,883
The balance in Glencoe allowance for doubtful accounts at the beginning of the year was $50,280 (credit). During the
year, accounts in the total amount of $51,232 were written off.
Required:
1. Determine bad debt expense.
12,835 ✓
I
2. Prepare the journal entry to record bad debt expense. If an amount box does not require an entry, leave it blank.
Bad Debt Expense
12,835 ✓
Allowance for Doubtful Accounts
12,835

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Question Content Area Allowance for Doubtful Accounts has a credit balance of $1,065 at the end of the year (before adjustment), and an analysis of the receivables indicates uncollectible accounts of $11,265. Which of the following entries journalizes the proper adjustment for bad debt expense? a. debit Bad Debt Expense for $12,330; credit Allowance for Doubtful Accounts for $12,330 b. debit Bad Debt Expense for $10,200; credit Allowance for Doubtful Accounts for $10,200 c. debit Allowance for Doubtful Accounts for $12,330; credit Bad Debt Expense for $12,330 d. debit Allowance for Doubtful Accounts for $10,200; credit Bad Debt Expense for $10,200
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Aging Receivables and Bad Debt Expense Perkinson Corporation sells paper products to a large number of retailers. Perkinson's accountant has prepared the following aging schedule for its accounts receivable at the end of the year. Accounts Receivable Category Amount Proportion Expected to Default Within discount period $384,500 0.004 1–30 days past discount period 187,600 0.015 31–60 days past discount period 41,800 0.085 Over 60 days past discount period 21,400 0.200 Before adjusting entries are entered, the balance in the allowance for doubtful accounts is a debit of $7,456. Required: 1. Calculate the desired postadjustment balance in Perkinson's allowance for doubtful accounts.$fill in the blank 1 2. Determine bad debt expense for the year.$fill in the blank 2