The following is an accounts receivable ageing schedule for Chin Ltd. Lee Lu Sing Wong Others Customer Estimated percentage uncollectable Total estimated bad debts Total $ 22000 40 000 57 000 34 000 126 000 279 000 $ 37 450 Not yet due $ 40000 16 000 96 000 152 000 4% 6080 1-30 $10000 6000 16 000 32 000 7% 2240 Number of days past due 31-60 61-90 $12000 14000 26000 13% 3380 $35.000 35 000 25% $8750 At 31 December 2023, the unadjusted balance in Allowance for Doubtful Debts is a credit of $12000. Required (a) Journalise and post the adjusting entry for bad debts at 31 December 2023. (b) Journalise and post to the allowance account these 2024 events and transactions. (Use running-balance format.) 1. 31 March, a $500 customer balance originating in 2024 is determined to be uncollectable. Over 90 $34 000 34000 50% $17.000 2. 31 May, a deposit of $500 is received from the customer whose account was written off as uncollectable on 31 March. (c) Journalise the adjusting entry for bad debts at 31 December 2024, assuming that the unadjusted balance in allowance for doubtful debts is a debit of $800 and the ageing schedule indicates that total estimated bad debts will be $30 300. mothode LO8
The following is an accounts receivable ageing schedule for Chin Ltd. Lee Lu Sing Wong Others Customer Estimated percentage uncollectable Total estimated bad debts Total $ 22000 40 000 57 000 34 000 126 000 279 000 $ 37 450 Not yet due $ 40000 16 000 96 000 152 000 4% 6080 1-30 $10000 6000 16 000 32 000 7% 2240 Number of days past due 31-60 61-90 $12000 14000 26000 13% 3380 $35.000 35 000 25% $8750 At 31 December 2023, the unadjusted balance in Allowance for Doubtful Debts is a credit of $12000. Required (a) Journalise and post the adjusting entry for bad debts at 31 December 2023. (b) Journalise and post to the allowance account these 2024 events and transactions. (Use running-balance format.) 1. 31 March, a $500 customer balance originating in 2024 is determined to be uncollectable. Over 90 $34 000 34000 50% $17.000 2. 31 May, a deposit of $500 is received from the customer whose account was written off as uncollectable on 31 March. (c) Journalise the adjusting entry for bad debts at 31 December 2024, assuming that the unadjusted balance in allowance for doubtful debts is a debit of $800 and the ageing schedule indicates that total estimated bad debts will be $30 300. mothode LO8
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:The following is an accounts receivable ageing schedule for Chin Ltd.
Lee
Lu
Sing
Wong
Others
Customer
Estimated percentage
uncollectable
Total estimated bad debts
Total
$ 22000
40 000
57 000
34 000
126 000
279 000
$ 37 450
Not yet due
$ 40000
16 000
96 000
152 000
4%
6080
1-30
$10000
6000
16 000
32 000
7%
2240
Number of days past due
61-90
31-60
$12000
14000
26000
13%
3380
$35 000
35 000
25%
$8750
At 31 December 2023, the unadjusted balance in Allowance for Doubtful Debts is a credit of $12000.
Required
(a) Journalise and post the adjusting entry for bad debts at 31 December 2023.
(b) Journalise and post to the allowance account these 2024 events and transactions. (Use running-balance format.)
1. 31 March, a $500 customer balance originating in 2024 is determined to be uncollectable.
Over 90
$34 000
34000
50%
$17.000
2. 31 May, a deposit of $500 is received from the customer whose account was written off as uncollectable on 31 March.
(c) Journalise the adjusting entry for bad debts at 31 December 2024, assuming that the unadjusted balance in allowance for
doubtful debts is a debit of $800 and the ageing schedule indicates that total estimated bad debts will be $30 300.
anthode
LO8
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