The following accounts receivable information pertains to Luxury Cruises. Past-Due Category Accounts Receivable Total Percentage Uncollectible 0-30 days $1,166,350 15% 31-90 days $577,870 33% Over 90 days $324,450 48% Using the following accounts, complete all journal entries: Accounts Receivable: Walker Accounts Receivable: Luxury Cruises Allowance for Doubtful Accounts Bad Debt Expense Sales Discount Sales Revenue PLEASE NOTE: All dollar amounts will be with "$" and commas as needed and rounded to two decimal places (i.e. $12,345.67). The estimated uncollectible bad debt for Luxury Cruises in 2018 using the balance sheet aging of receivables method is . Record the year-end 2018 adjusting journal entry for bad debt. DR CR Assume there was a previous debit balance in Allowance for Doubtful Accounts of $187,450; record the year-end entry for bad debt. DR CR Assume there was a previous credit balance in Allowance for Doubtful Accounts of $206,770; record the year-end entry for bad debt. DR CR On January 24, 2019, Luxury Cruises identifies Landon Walker’s account as uncollectible in the amount of $4,650. Record the entry for identification. DR CR
The following accounts receivable information pertains to Luxury Cruises. Past-Due Category Accounts Receivable Total Percentage Uncollectible 0-30 days $1,166,350 15% 31-90 days $577,870 33% Over 90 days $324,450 48% Using the following accounts, complete all journal entries: Accounts Receivable: Walker Accounts Receivable: Luxury Cruises Allowance for Doubtful Accounts Bad Debt Expense Sales Discount Sales Revenue PLEASE NOTE: All dollar amounts will be with "$" and commas as needed and rounded to two decimal places (i.e. $12,345.67). The estimated uncollectible bad debt for Luxury Cruises in 2018 using the balance sheet aging of receivables method is . Record the year-end 2018 adjusting journal entry for bad debt. DR CR Assume there was a previous debit balance in Allowance for Doubtful Accounts of $187,450; record the year-end entry for bad debt. DR CR Assume there was a previous credit balance in Allowance for Doubtful Accounts of $206,770; record the year-end entry for bad debt. DR CR On January 24, 2019, Luxury Cruises identifies Landon Walker’s account as uncollectible in the amount of $4,650. Record the entry for identification. DR CR
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
100%
The following
| Past-Due Category | Accounts Receivable Total | Percentage Uncollectible |
| 0-30 days | $1,166,350 | 15% |
| 31-90 days | $577,870 | 33% |
| Over 90 days | $324,450 | 48% |
Using the following accounts, complete all journal entries:
| Accounts Receivable: Walker | Accounts Receivable: Luxury Cruises |
| Allowance for Doubtful Accounts | |
| Sales Discount | Sales Revenue |
PLEASE NOTE: All dollar amounts will be with "$" and commas as needed and rounded to two decimal places (i.e. $12,345.67).
- The estimated uncollectible bad debt for Luxury Cruises in 2018 using the
balance sheet aging of receivables method is . - Record the year-end 2018
adjusting journal entry for bad debt. -
DR CR - Assume there was a previous debit balance in Allowance for Doubtful Accounts of $187,450; record the year-end entry for bad debt.
-
DR CR - Assume there was a previous credit balance in Allowance for Doubtful Accounts of $206,770; record the year-end entry for bad debt.
-
DR CR - On January 24, 2019, Luxury Cruises identifies Landon Walker’s account as uncollectible in the amount of $4,650. Record the entry for identification.
-
DR CR
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Introduction to Accounts Receivable
VIEWEstimated Uncollectible Bad Debt
VIEWAdjusting Journal Entry for Bad Debt (2018).
VIEWJournal entry for Bad Debt when there is a debit balance of Allowance for Doubtful Accounts
VIEWJournal entry for Bad Debt when there is a credit balance of Allowance for Doubtful Accounts
VIEWJournal Entry to record uncollectible amount
VIEW
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