Kingbird Merchandising uses an aging schedule to determine its estimated uncollectible accounts at year end. The percentage estimates of bad debts are as follows: KINGBIRD MERCHANDISING Aged Schedule of Accounts Receivable No. of Days Outstanding 0-30 days 31-60 days 61-90 days Over 90 days (a) Number of Days Outstanding 0-30 days 31-60 days Amount $61,400 26,000 61-90 days 11,700 Using the information above for Kingbird Merchandising, prepare the adjusting entry to record bad debt expense for each of the following independent situations: Over 90 days 4,900 $104,000 The Allowance for Doubtful Accounts has an unadjusted $1,590 debit balance and the company uses the aging schedule to determine estimated uncollectible accounts. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts. List debit entry before credit entry. Round answers to 2 decimal places, e.g. 52.76.) Amount KINGBIRD MERCHANDISING Aged Schedule of Accounts Receivable $61,400 26,000 11,700 Estimated % Uncollectible 0.45% 6.40% 22.00% 4,900 52.00% $104,000 Date Account Titles Dec. 31 Estimated % Uncollectible 0.45% 6.40% 22.00% 52.00% $ $ Estimated Uncollectible Accounts Debit Credit
Kingbird Merchandising uses an aging schedule to determine its estimated uncollectible accounts at year end. The percentage estimates of bad debts are as follows: KINGBIRD MERCHANDISING Aged Schedule of Accounts Receivable No. of Days Outstanding 0-30 days 31-60 days 61-90 days Over 90 days (a) Number of Days Outstanding 0-30 days 31-60 days Amount $61,400 26,000 61-90 days 11,700 Using the information above for Kingbird Merchandising, prepare the adjusting entry to record bad debt expense for each of the following independent situations: Over 90 days 4,900 $104,000 The Allowance for Doubtful Accounts has an unadjusted $1,590 debit balance and the company uses the aging schedule to determine estimated uncollectible accounts. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts. List debit entry before credit entry. Round answers to 2 decimal places, e.g. 52.76.) Amount KINGBIRD MERCHANDISING Aged Schedule of Accounts Receivable $61,400 26,000 11,700 Estimated % Uncollectible 0.45% 6.40% 22.00% 4,900 52.00% $104,000 Date Account Titles Dec. 31 Estimated % Uncollectible 0.45% 6.40% 22.00% 52.00% $ $ Estimated Uncollectible Accounts Debit Credit
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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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
Transcribed Image Text:Kingbird Merchandising uses an aging schedule to determine its estimated uncollectible accounts at year end. The percentage
estimates of bad debts are as follows:
KINGBIRD MERCHANDISING
Aged Schedule of Accounts Receivable
No. of Days
Outstanding
0-30 days
31-60 days
61-90 days
Over 90 days
(a)
Number of
Days
Outstanding
0-30 days
31-60 days
Amount
$61,400
26,000
61-90 days
11,700
Using the information above for Kingbird Merchandising, prepare the adjusting entry to record bad debt expense for each of the
following independent situations:
Over 90 days
4,900
$104,000
The Allowance for Doubtful Accounts has an unadjusted $1,590 debit balance and the company uses the aging schedule to
determine estimated uncollectible accounts. (Credit account titles are automatically indented when the amount is entered. Do not
indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts. List debit entry before credit
entry. Round answers to 2 decimal places, e.g. 52.76.)
Amount
KINGBIRD MERCHANDISING
Aged Schedule of Accounts Receivable
$61,400
26,000
11,700
Estimated %
Uncollectible
0.45%
6.40%
22.00%
4,900
52.00%
$104,000
Date Account Titles
Dec.
31
Estimated %
Uncollectible
0.45%
6.40%
22.00%
52.00%
$
$
Estimated
Uncollectible
Accounts
Debit
Credit
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