Casilda Company uses the aging approach to estimate bad debt expense. The ending balance of each account receivable is aged on the basis of three time periods as follows: (1) not yet due, $50,100; (2) up to 180 days past due, $15,300; and (3) more than 180 days past due, $4,500. Experience has shown that for each age group, the average loss rate on the amount of the receivables at year-end due to uncollectibility is (1) 4 percent, (2) 12 percent, and (3) 30 percent, respectively. At December 31, the end of the current year, the Allowance for Doubtful Accounts balance is $400 (credit) before the end-of-period adjusting entry is made. Required: 1. Prepare the appropriate bad debt expense adjusting entry for the current year. 2. Show how the various accounts related to accounts receivable should be shown on the December 31, current year, balance sheet Complete this question by entering your answers in the tabs below. Journal entry worksheet < 1 Record the adjusting journal entry for bad debt expense. Note: Enter debits before credits. Credit Date General Journal Debit No journal entry required December 31 Record entry View general journal Clear entry
Casilda Company uses the aging approach to estimate bad debt expense. The ending balance of each account receivable is aged on the basis of three time periods as follows: (1) not yet due, $50,100; (2) up to 180 days past due, $15,300; and (3) more than 180 days past due, $4,500. Experience has shown that for each age group, the average loss rate on the amount of the receivables at year-end due to uncollectibility is (1) 4 percent, (2) 12 percent, and (3) 30 percent, respectively. At December 31, the end of the current year, the Allowance for Doubtful Accounts balance is $400 (credit) before the end-of-period adjusting entry is made. Required: 1. Prepare the appropriate bad debt expense adjusting entry for the current year. 2. Show how the various accounts related to accounts receivable should be shown on the December 31, current year, balance sheet Complete this question by entering your answers in the tabs below. Journal entry worksheet < 1 Record the adjusting journal entry for bad debt expense. Note: Enter debits before credits. Credit Date General Journal Debit No journal entry required December 31 Record entry View general journal Clear entry
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 85APSA: Determining Bad Debt Expense Using the Aging Method At the beginning of the year, Tennyson Auto...
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![Casilda Company uses the aging approach to estimate bad debt expense. The ending balance of each account receivable is aged on
the basis of three time periods as follows: (1) not yet due, $50,100; (2) up to 180 days past due, $15,300; and (3) more than 180 days
past due, $4,500. Experience has shown that for each age group, the average loss rate on the amount of the receivables at year-end
due to uncollectibility is (1) 4 percent, (2) 12 percent, and (3) 30 percent, respectively. At December 31, the end of the current year, the
Allowance for Doubtful Accounts balance is $400 (credit) before the end-of-period adjusting entry is made.
Required:
1. Prepare the appropriate bad debt expense adjusting entry for the current year.
2. Show how the various accounts related to accounts receivable should be shown on the December 31, current year, balance sheet
Complete this question by entering your answers in the tabs below.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F0b424a93-0b2e-44d0-8d13-43076b7db66c%2F8635f23e-7459-4044-a1ca-cbd75af126f8%2Flo2mhyk.png&w=3840&q=75)
Transcribed Image Text:Casilda Company uses the aging approach to estimate bad debt expense. The ending balance of each account receivable is aged on
the basis of three time periods as follows: (1) not yet due, $50,100; (2) up to 180 days past due, $15,300; and (3) more than 180 days
past due, $4,500. Experience has shown that for each age group, the average loss rate on the amount of the receivables at year-end
due to uncollectibility is (1) 4 percent, (2) 12 percent, and (3) 30 percent, respectively. At December 31, the end of the current year, the
Allowance for Doubtful Accounts balance is $400 (credit) before the end-of-period adjusting entry is made.
Required:
1. Prepare the appropriate bad debt expense adjusting entry for the current year.
2. Show how the various accounts related to accounts receivable should be shown on the December 31, current year, balance sheet
Complete this question by entering your answers in the tabs below.
![Journal entry worksheet
<
1
Record the adjusting journal entry for bad debt expense.
Note: Enter debits before credits.
Credit
Date
General Journal
Debit
No journal entry required
December 31
Record entry
View general journal
Clear entry](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F0b424a93-0b2e-44d0-8d13-43076b7db66c%2F8635f23e-7459-4044-a1ca-cbd75af126f8%2Feq4nctj.png&w=3840&q=75)
Transcribed Image Text:Journal entry worksheet
<
1
Record the adjusting journal entry for bad debt expense.
Note: Enter debits before credits.
Credit
Date
General Journal
Debit
No journal entry required
December 31
Record entry
View general journal
Clear entry
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