The following is information taken from the June 30, 2020, balance sheet of Tippleton Company Accounts receivable Less: Allowance for doubtful $410,000 17,600 592, 40 accounts Part 1 During July. Tippleton Company recorded totel sales of $1.093,000, all on credit. There were $39.000 of sales returns and allowances. Collections during July were S1199.000. Total recelvables idensfied as being uncollectiole and written off during July were $24.000. Tippleton estimates bad debts as of net credit sales Required: Prepare the adjusting entry to record estmated bed debts for July Vew transacton Journal entry worksheet Record the estimated uncollectible accounts. Nt Ente det eleit Date General Journal Debit Credit Ju 31 Record entry Clear entry View general ouma Part 2 Durng August, totel sales ol S1.M9000 were recrded, all on crestit Seles retuns and allowens tatallert $Z1000 Callectons during the month were $1169,000, which Included the recovery of 52.000 from a customer account written off in a previous month. No accounts were wrdlen oll turing August Tippleton Compeny changed es method of estmating bad detts to the belance sheet approach because the new accountant sald it more accurately reflected uncollectible accounts. The resulting aging analysis determned total estamated uncollectible nccounts August 31 to be 15.000 Required: Prepare the August 31 adpnting entry to record estimated bad debts for August Vew transaction st Journal entry worksheet Record the estimate for uncollectible accounts. Nota Enter daita before cedita Date General Journal Debit Credit Aug 31
The following is information taken from the June 30, 2020, balance sheet of Tippleton Company Accounts receivable Less: Allowance for doubtful $410,000 17,600 592, 40 accounts Part 1 During July. Tippleton Company recorded totel sales of $1.093,000, all on credit. There were $39.000 of sales returns and allowances. Collections during July were S1199.000. Total recelvables idensfied as being uncollectiole and written off during July were $24.000. Tippleton estimates bad debts as of net credit sales Required: Prepare the adjusting entry to record estmated bed debts for July Vew transacton Journal entry worksheet Record the estimated uncollectible accounts. Nt Ente det eleit Date General Journal Debit Credit Ju 31 Record entry Clear entry View general ouma Part 2 Durng August, totel sales ol S1.M9000 were recrded, all on crestit Seles retuns and allowens tatallert $Z1000 Callectons during the month were $1169,000, which Included the recovery of 52.000 from a customer account written off in a previous month. No accounts were wrdlen oll turing August Tippleton Compeny changed es method of estmating bad detts to the belance sheet approach because the new accountant sald it more accurately reflected uncollectible accounts. The resulting aging analysis determned total estamated uncollectible nccounts August 31 to be 15.000 Required: Prepare the August 31 adpnting entry to record estimated bad debts for August Vew transaction st Journal entry worksheet Record the estimate for uncollectible accounts. Nota Enter daita before cedita Date General Journal Debit Credit Aug 31
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
complete part 2
Transcribed Image Text:The following is information taken from the June 30, 2020, balence sheet of Tippleton Company:
Accounts receivable
Less: Allouance for doubtful
$410, 000
17,509 $392, 480
accounts
Part 1
During July. Tippleton Company recorded totel sales of $1.093,000, all on credit. There were $39.000 of sales returns and allowances.
Collections during July were S1199.000. Total recelvables idensfied as being uncollectible and writen off during July were $24,000.
Tippleton estimates bad debts as 16 of net credit sales
Required:
Prepare the adjusting entry to record estmated bad debts for July
View transaction ist
Journal entry worksheet
Record the estimated uncollectible accounts.
Note Enter debits belue edits.
Date
General Journal
Debit
Credit
Jul 31
Record entry
Clear entry
View general joumal
Part 2
During August, tolal sales ol $119000 were recardeed, all on crestil Sales retuns and sillowencs tolallest $23.000 Callections
during the month were $1,169,000, which Included the recovery of $2.000 from a customer account wiritten off in a previous month. No
accounits were wrillen oll during August Tipplelon Compeny chenged s methad ol estimeling bad detbts lo the belarıce sheet
approach because the new accountont sald it more accurately refiected uncollectible accounts. The resulting aging analysis
cdetermined tolal estimated uncollectible accourts l August 31 to be $15.000
Required:
Prepare the August 31 adjusting entry to record estimated bad debts for August
Vlew transaction st
Journal entry worksheet
Record the estimate for uncollectible accounts.
Nota: Enter daita bafore cedita
Date
General Journal
Debit
Credit
Aug 31
Expert Solution
Step 1
Allowance has a balance of $17,600 on June 30. On August 31, it should have a balance of $15,000 as per the question.
During July, Bad debt expense was $10,540, and accounts written of were $24,000.
So the balance on July 31 is $4,140 (10,540 + 17,600 - 24,000)
In August, Accounts recovered were $2,000.
So the balance becomes $6,140 (4,140 + 2,000)
Ending balance should be $15,000
Therefore, the Bad debt is $8,860 (15,000 - 6,140)
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