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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

College Accounting, Chapters 1-27
College Accounting, Chapters 1-27
23rd Edition
ISBN:9781337794756
Author:HEINTZ, James A.
Publisher:HEINTZ, James A.
Chapter16: Accounting For Accounts Receivable
Section: Chapter Questions
Problem 3CP: At the end of 20-3, Martel Co. had 410,000 in Accounts Receivable and a credit balance of 300 in...
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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
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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