This question can be copied directly into your Word document. Your typing will be minimal. Part a. Complete the form below to age the accounts receivable. Provide the necessary end-of-year journal entry. You need to fill in the “Totals” row, the “Dollar amount” row, and prepare the journal entry. Aging of accounts receivable (also called the balance sheet method) Age 1-30 days 31-60 days 61-90 days Over 90 days Totals Smith 60,000 Jones 20,000 10,000 White 10,000 Brown 40,000 Green 30,000 LeBlanc 50,000 Pelletier 10,000 Totals 230,000 Estimated uncollectible 1% 2% 10% 50% Dollar amount The Allowance for doubtful accounts currently has a credit balance of $800. Journal entry to adjust for bad debts: Dec. 31 Part b. Percentage of sales method (also called the income statement method) Net credit sales are $5,000,000 Estimated bad debts are .2% of net credit sales. Calculate the estimate and enter your answer in the box below. $ Journal entry to adjust for bad debts: Dec. 31 Part c. In the following year, on January 30, we wrote off the account of Pelletier. On March 18, Pelletier won the lottery and repaid us. Prepare the journal entries. Jan. 30 Mar. 18 18
Question 4.
This question can be copied directly into your Word document. Your typing will be minimal.
Part a. Complete the form below to age the
Aging of accounts receivable (also called the
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Age |
1-30 days |
31-60 days |
61-90 days |
Over 90 days |
Totals |
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Smith |
60,000 |
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Jones |
20,000 |
10,000 |
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White |
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10,000 |
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Brown |
40,000 |
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Green |
30,000 |
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LeBlanc |
50,000 |
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Pelletier |
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10,000 |
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Totals |
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230,000 |
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Estimated uncollectible |
1% |
2% |
10% |
50% |
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Dollar amount |
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The Allowance for doubtful accounts currently has a credit balance of $800.
Journal entry to adjust for
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Dec. 31 |
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Part b. Percentage of sales method (also called the income statement method)
Net credit sales are $5,000,000
Estimated bad debts are .2% of net credit sales.
Calculate the estimate and enter your answer in the box below.
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$ |
Journal entry to adjust for bad debts:
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Dec. 31 |
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Part c. In the following year, on January 30, we wrote off the account of Pelletier.
On March 18, Pelletier won the lottery and repaid us. Prepare the journal entries.
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Jan. 30 |
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Mar. 18 |
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18 |
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