Journalize the adjusting entry for the bad expenses - picture attattached to show the format Also prepare the journal entry for the transaction for 2024 using the allowance method Transactions for 2024 1-Sales revenue on account, $113,600 (ignore Cost of Goods Sold). 2-Collections on account, $92,895 3-Write-offs of uncollectibles, $760. 4- The Company accepted a 90-day, 9%, $13,500 note receivable from a customer in exchange for 4 his account receivable. a Journalize the issuance of the note. b Journalize the collection of the principal and interest at maturity. (use 360 days) 5 Bad debts expense of $?? was recorded. (Refer to requirement 3)(about the write off) The image attached also has the data and imformation.

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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Journalize the adjusting entry for the bad expenses - picture attattached to show the format Also prepare the journal entry for the transaction for 2024 using the allowance method Transactions for 2024 1-Sales revenue on account, $113,600 (ignore Cost of Goods Sold). 2-Collections on account, $92,895 3-Write-offs of uncollectibles, $760. 4- The Company accepted a 90-day, 9%, $13,500 note receivable from a customer in exchange for 4 his account receivable. a Journalize the issuance of the note. b Journalize the collection of the principal and interest at maturity. (use 360 days) 5 Bad debts expense of $?? was recorded. (Refer to requirement 3)(about the write off) The image attached also has the data and imformation.
### Minimum Days, Maximum Days, % Uncollectible

| Minimum Days | Maximum Days | % Uncollectible |
|--------------|--------------|-----------------|
| 1            | 30           | 0.0             |
| 31           | 60           | 0.1             |
| 61           | 90           | 0.2             |
| 91           | 365          | 0.7             |

### Data Table

| Customer Name | Amount | Today's Date | Invoice Date | Days Outstanding | Uncollectible % |
|---------------|--------|--------------|--------------|------------------|-----------------|
| Bonneville    | $80    | 7/31/2024    | 5/26/2024    | 66               | 12.0%           |
| Chinook       | $1,010 | 7/31/2024    | 5/30/2024    | 61               | 3.5%            |
| Duwamish      | $150   | 7/31/2024    | 7/12/2024    | 19               | 1.5%            |
| Fors          | $3,145 | 7/31/2024    | 4/15/2024    | 107              | 70.0%           |
| Nisqually     | $710   | 7/31/2024    | 6/18/2024    | 43               | 0.0%            |
| Worden        | $350   | 7/31/2024    | 5/10/2024    | 82               | 12.0%           |

### Schedule of Accounts Receivable

| Customer Name | 1-30 Days | 31-60 Days | 61-90 Days | 91-365 Days | Total Balance |
|---------------|-----------|------------|------------|-------------|---------------|
| Bonneville    |           |            | 980        |             | 980           |
| Chinook       |           | 1,010      |            |             | 1,010         |
| Duwamish      | 150       |            |            |             | 150           |
| Fors          |           |            |            | 3,145       | 3,145         |
|
Transcribed Image Text:### Minimum Days, Maximum Days, % Uncollectible | Minimum Days | Maximum Days | % Uncollectible | |--------------|--------------|-----------------| | 1 | 30 | 0.0 | | 31 | 60 | 0.1 | | 61 | 90 | 0.2 | | 91 | 365 | 0.7 | ### Data Table | Customer Name | Amount | Today's Date | Invoice Date | Days Outstanding | Uncollectible % | |---------------|--------|--------------|--------------|------------------|-----------------| | Bonneville | $80 | 7/31/2024 | 5/26/2024 | 66 | 12.0% | | Chinook | $1,010 | 7/31/2024 | 5/30/2024 | 61 | 3.5% | | Duwamish | $150 | 7/31/2024 | 7/12/2024 | 19 | 1.5% | | Fors | $3,145 | 7/31/2024 | 4/15/2024 | 107 | 70.0% | | Nisqually | $710 | 7/31/2024 | 6/18/2024 | 43 | 0.0% | | Worden | $350 | 7/31/2024 | 5/10/2024 | 82 | 12.0% | ### Schedule of Accounts Receivable | Customer Name | 1-30 Days | 31-60 Days | 61-90 Days | 91-365 Days | Total Balance | |---------------|-----------|------------|------------|-------------|---------------| | Bonneville | | | 980 | | 980 | | Chinook | | 1,010 | | | 1,010 | | Duwamish | 150 | | | | 150 | | Fors | | | | 3,145 | 3,145 | |
The image shows a spreadsheet template, likely used for accounting or ledger purposes. Here's a description suitable for an educational website:

---

**Spreadsheet Template for Accounting Ledger**

This spreadsheet is designed to help users manage financial transactions effectively. Below is a breakdown of its layout:

- **Columns**:
  - **Date**: This column is meant for recording the date of each transaction.
  - **Account and Explanation**: This column allows users to list the account involved and provide a brief description of the transaction.
  - **DR (Debit)**: This column is used to record amounts that increase asset or expense accounts.
  - **CR (Credit)**: This column is used to record amounts that increase liability, equity, or income accounts.
  
- **Rows**:
  - Multiple rows are provided for entering daily transactions, with each row allowing for a separate entry.

- **Formatting**:
  - The sheet has alternating shaded rows, which can help in visually distinguishing between different transactions.

This template can serve as a basic structure for students or professionals learning about bookkeeping and financial recordkeeping.

--- 

Ensure that learners understand how to input data accurately in each column to maintain a clear and effective accounting record.
Transcribed Image Text:The image shows a spreadsheet template, likely used for accounting or ledger purposes. Here's a description suitable for an educational website: --- **Spreadsheet Template for Accounting Ledger** This spreadsheet is designed to help users manage financial transactions effectively. Below is a breakdown of its layout: - **Columns**: - **Date**: This column is meant for recording the date of each transaction. - **Account and Explanation**: This column allows users to list the account involved and provide a brief description of the transaction. - **DR (Debit)**: This column is used to record amounts that increase asset or expense accounts. - **CR (Credit)**: This column is used to record amounts that increase liability, equity, or income accounts. - **Rows**: - Multiple rows are provided for entering daily transactions, with each row allowing for a separate entry. - **Formatting**: - The sheet has alternating shaded rows, which can help in visually distinguishing between different transactions. This template can serve as a basic structure for students or professionals learning about bookkeeping and financial recordkeeping. --- Ensure that learners understand how to input data accurately in each column to maintain a clear and effective accounting record.
Expert Solution
Step 1: Define Uncollectible Accounts

The amount for uncollectible accounts is estimated using management experience and the current paying ability of a debtor. This is recorded as an expense under the conservatism principle of accounting.

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