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The following represents selected information taken from a company's aging of accounts receivable schedule to erestimate uncollectible accounts receivable at year-end Accounts Receivable % uncollectible Total 375,000 0-30 220,000 1% (a) Number of days outstanding 61 - 90 91 - 120 31-60 90,000 4% Instructions (a) Calculate the total estimated bad debts based on the above information. 40,000 5% Total Account Receivable $375,000 Percent Uncollectible Estimated Bad Debts 10,000 8% (b) Prepare the year-end adjusting journal entry to record the bad debt expense using the allowance method with an aged uncollectible accounts receivable amount of $11,600 Assume the current balance in Allowance for Doubtful Accounts is a $3,000 credit 0-30 $220,000 1% (c) $1,600 of the allowance is determined to be uncollectible. Prepare the journal entry write off the uncollectible accounts. Over (d) The company collects $700 of a previously written-off account. Prepare the journal entries required to (1) restore the account and (2) record the cash collection. 15, Number of Days Outstanding 61 - 90 91 - 120 31-60 $90,000 4% $10,000 $ 40,000 5% 8% 20 Add up these 5 columns to get the "total". Over $15- 20

The following represents selected information taken from a company's aging of accounts receivable schedule to erestimate uncollectible accounts receivable at year-end Accounts Receivable % uncollectible Total 375,000 0-30 220,000 1% (a) Number of days outstanding 61 - 90 91 - 120 31-60 90,000 4% Instructions (a) Calculate the total estimated bad debts based on the above information. 40,000 5% Total Account Receivable $375,000 Percent Uncollectible Estimated Bad Debts 10,000 8% (b) Prepare the year-end adjusting journal entry to record the bad debt expense using the allowance method with an aged uncollectible accounts receivable amount of $11,600 Assume the current balance in Allowance for Doubtful Accounts is a $3,000 credit 0-30 $220,000 1% (c) $1,600 of the allowance is determined to be uncollectible. Prepare the journal entry write off the uncollectible accounts. Over (d) The company collects $700 of a previously written-off account. Prepare the journal entries required to (1) restore the account and (2) record the cash collection. 15, Number of Days Outstanding 61 - 90 91 - 120 31-60 $90,000 4% $10,000 $ 40,000 5% 8% 20 Add up these 5 columns to get the "total". Over $15- 20

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Hi I'm practing on this exercise and I am confused on completing a, b, c ,d

The following represents selected information taken from a company's aging of accounts receivable schedule to erestimate uncollectible accounts receivable at year-end Accounts Receivable % uncollectible Total (a) 375,000 0 - 30 (b) 220,000 1% (c) Instructions (a) Calculate the total estimated bad debts based on the above information. (d) Number of days outstanding 61 - 90 31-60 91 - 120 Total Account Receivable $375,000 Percent Uncollectible Estimated Bad Debts 90,000 4% (b) Prepare the year-end adjusting journal entry to record the bad debt expense using the allowance method with an aged uncollectible accounts receivable amount of $11,600. Assume the current balance in Allowance for Doubtful Accounts is a $3,000 credit. 40,000 5% (c) $1,600 of the allowance is determined to be uncollectible. Prepare the journal entry to write off the uncollectible accounts. 10,000 8% (d) The company collects $700 of a previously written-off account. Prepare the journal entries required to (1) restore the account and (2) record the cash collection. 0 - 30 $220,000 1% Over 120 15,000 20% Number of Days Outstanding 31-60 $90,000 4% 61 - 90 91 - 120 $40,000 $10,000 5% 8% · Add up these 5 columns to get the "total". Over 120 $ 15,000 20%
Transcribed Image Text:The following represents selected information taken from a company's aging of accounts receivable schedule to erestimate uncollectible accounts receivable at year-end Accounts Receivable % uncollectible Total (a) 375,000 0 - 30 (b) 220,000 1% (c) Instructions (a) Calculate the total estimated bad debts based on the above information. (d) Number of days outstanding 61 - 90 31-60 91 - 120 Total Account Receivable $375,000 Percent Uncollectible Estimated Bad Debts 90,000 4% (b) Prepare the year-end adjusting journal entry to record the bad debt expense using the allowance method with an aged uncollectible accounts receivable amount of $11,600. Assume the current balance in Allowance for Doubtful Accounts is a $3,000 credit. 40,000 5% (c) $1,600 of the allowance is determined to be uncollectible. Prepare the journal entry to write off the uncollectible accounts. 10,000 8% (d) The company collects $700 of a previously written-off account. Prepare the journal entries required to (1) restore the account and (2) record the cash collection. 0 - 30 $220,000 1% Over 120 15,000 20% Number of Days Outstanding 31-60 $90,000 4% 61 - 90 91 - 120 $40,000 $10,000 5% 8% · Add up these 5 columns to get the "total". Over 120 $ 15,000 20%
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