### Accounts Receivable Information for Luxury Cruises#### Table: Aging of Accounts ReceivableThe table below provides details on the accounts receivable for Luxury Cruises based on the periods they are past due, alongside the percentage that is estimated to be uncollectible.| **Past-Due Category** | **Accounts Receivable Total** | **Percentage Uncollectible** ||-----------------------|-------------------------------|-----------------------------|| 0–30 days | $1,166,350 | 15% || 31–90 days | $577,870 | 33% || Over 90 days | $324,450 | 48% |#### InstructionsA. **Determine Uncollectible Bad Debt:** - Calculate the estimated uncollectible bad debt for Luxury Cruises in 2018 using the balance sheet aging method.B. **Record Year-End Adjustment:** - Make the necessary year-end 2018 adjusting journal entry for bad debt.C. **Adjust for Previous Debit Balance:** - Assume there was a previous debit balance in the Allowance for Doubtful Accounts of $187,450. Record the year-end entry for bad debt considering this balance.D. **Adjust for Previous Credit Balance:** - Assume there was a previous credit balance in the Allowance for Doubtful Accounts of $206,770. Record the year-end entry for bad debt considering this balance.E. **Account Identification:** - On January 24, 2019, Luxury Cruises recognizes that Landon Walker’s account is uncollectible in the amount of $4,650. Record the necessary entry for this identification.

A. Calculation of the uncollectible bad debts for the year 2018 : Past due category 0 - 30 days :…

PA5. LO 9.2 The following accounts receivable information pertains to Luxury Cruises. Past-Due Category Accounts Receivable Total Percentage Uncollectible 0-30 days 31-90 days Over 90 days $1,166,350 577,870 324,450 15% 33% 48% A. Determine the estimated uncollectible bad debt for Luxury Cruises in 2018 using the balance sheet aging of receivables method. B. Record the year-end 2018 adjusting journal entry for bad debt. C. Assume there was a previous debit balance in Allowance for Doubtful Accounts of $187,450; record the year-end entry for bad debt, taking this into consideration.

PA5. LO 9.2 The following accounts receivable information pertains to Luxury Cruises. Past-Due Category Accounts Receivable Total Percentage Uncollectible 0-30 days 31-90 days Over 90 days $1,166,350 577,870 324,450 15% 33% 48% A. Determine the estimated uncollectible bad debt for Luxury Cruises in 2018 using the balance sheet aging of receivables method. B. Record the year-end 2018 adjusting journal entry for bad debt. C. Assume there was a previous debit balance in Allowance for Doubtful Accounts of $187,450; record the year-end entry for bad debt, taking this into consideration.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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