Question-2: Presented below is an aging schedule for Garry Owen Company Number of Days Past Due Not 61-90 Over 90 Customer Total Yet Due 1-30 31-60 $ 26,000 $11,500 $14,500 4 Alma $ 45,000 5 Browne 6 Conlon 7 Dalton 8 Others 45,000 75,000 22,500 7,500 $45,000 57,000 $57,000 138,000 22,500 19,500 $34,000 $45,000 $66,000 189,000 9,000 $392,000 $205,500 $41,500 Estimated 10 percentage uncollectible 2% 6% 10% 25% SO% Total estimated 11 bad debts $ 54,250 $ 4,110 $ 2,490 $ 3,400 $11,250 $33,000 At December 31, 2014, the unadjusted balance in Allowance for Doubtful Accounts is a credit of Tk. 14,000. Instructions (a) Journalize and post the adjusting entry for bad debts at December 31, 2014. (b) Journalize and post to the allowance account the following events and transactions in the year 2015. (1) March 1, a Tk.1.900 customer balance originating in 2014 is judged uncollectible. (2) May 1, a check for Tk.1,900 is received from the customer whose account was written off as uncollectible on March 1. (c) Journalize the adjusting entry for bad debts on December 31, 2015. Assume that the unadjusted balance in Allowance for Doubtful Accounts is a debit of Tk.3,400, and the aging schedule indicates that total estimated bad debts will be Tk.42,300.
Question-2: Presented below is an aging schedule for Garry Owen Company Number of Days Past Due Not 61-90 Over 90 Customer Total Yet Due 1-30 31-60 $ 26,000 $11,500 $14,500 4 Alma $ 45,000 5 Browne 6 Conlon 7 Dalton 8 Others 45,000 75,000 22,500 7,500 $45,000 57,000 $57,000 138,000 22,500 19,500 $34,000 $45,000 $66,000 189,000 9,000 $392,000 $205,500 $41,500 Estimated 10 percentage uncollectible 2% 6% 10% 25% SO% Total estimated 11 bad debts $ 54,250 $ 4,110 $ 2,490 $ 3,400 $11,250 $33,000 At December 31, 2014, the unadjusted balance in Allowance for Doubtful Accounts is a credit of Tk. 14,000. Instructions (a) Journalize and post the adjusting entry for bad debts at December 31, 2014. (b) Journalize and post to the allowance account the following events and transactions in the year 2015. (1) March 1, a Tk.1.900 customer balance originating in 2014 is judged uncollectible. (2) May 1, a check for Tk.1,900 is received from the customer whose account was written off as uncollectible on March 1. (c) Journalize the adjusting entry for bad debts on December 31, 2015. Assume that the unadjusted balance in Allowance for Doubtful Accounts is a debit of Tk.3,400, and the aging schedule indicates that total estimated bad debts will be Tk.42,300.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Accounts. Post the entries to the two accounts (use T-accounts), and determine the
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(c) Prepare the journal entry to record bad debt expense for 2014, assuming that an aging
of accounts receivable indicates that estimated bad debts are Tk.22,000.
(d) Compute the accounts receivable turnover ratio for the year 2014, assuming the expected
bad debt information presented in (c).
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Question-2: Presented below is an aging schedule for Garry Owen Company
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1
Number of Days Past Due
2
Not
3
Customer
Total
Yet Due
1-30
31-60
61-90
Over 90
$ 26,000
Export PDF
4 Alma
$11,500 $14,500
5 Browne
45,000
$ 45,000
6
Conlon
75,000
22,500
7,500
$45,000
Comment
7
Dalton
57,000
$57,000
8 Others
189,000
138,000
22,500
19,500
9,000
F0 Organize Pages
$392,000
$205,500
$41,500
$34,000
$45,000 $66,000
Estimated
10
percentage
uncollectible
2%
6%
10%
25%
50%
Scan & OCR
Total estimated
11
bad debts
$ 54,250
$ 4,110
$ 2,490 $ 3,400
$11,250 $33,000
O Protect
At December 31, 2014, the unadjusted balance in Allowance for Doubtful Accounts is a
credit of Tk.14,000.
Instructions
(a) Journalize and post the adjusting entry for bad debts at December 31, 2014.
(b) Journalize and post to the allowance account the following events and transactions in
the year 2015.
A. Fill & Sign
Prepare Form
(1) March 1, a Tk.1,900 customer balance originating in 2014 is judged uncollectible.
(2) May 1, a check for Tk.1,900 is received from the customer whose account was written off
as uncollectible on March 1.
(c) Journalize the adjusting entry for bad debts on December 31, 2015. Assume that the
unadjusted balance in Allowance for Doubtful Accounts is a debit of Tk.3,400, and the
aging schedule indicates that total estimated bad debts will be Tk.42.300.
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