Worldwide Marble Importers had the following balances at December 31, 2024, before the year-end adjustments: (Click the icon to view the balances.) The aging of accounts receivable yields the following data: (Click the icon to view the accounts receivable aging schedule.) Requirements 1. Journalize Worldwide's entry to record bad debts expense for 2024 using the aging-of-receivables method. 2. Prepare a T-account to compute the ending balance of Allowance for Bad Debts. Requirement 1. Journalize Worldwide's entry to record bad debts expense for 2024 using the aging-of-receivables method. (Record debits first, then credits. Select the explanation on the last line of the journal entry table.) Date Accounts Debit Dec. 31 Data table Accounts Receivable Estimated percent uncollectible $ 0.60 Days 71,000 x 4% Print Age of Accounts Receivable Over 60 Days 4,000 x 25% $ Done Credit Total Receivables $ 75,000 Data table Accounts eceivable 75,000 Print Allowance for Bad Deb 1,978 Done

Worldwide Marble Importers had the following balances at December 31, 2024, before the year-end adjustments: (Click the icon to view the balances.) The aging of accounts receivable yields the following data: (Click the icon to view the accounts receivable aging schedule.) Requirements 1. Journalize Worldwide's entry to record bad debts expense for 2024 using the aging-of-receivables method. 2. Prepare a T-account to compute the ending balance of Allowance for Bad Debts. Requirement 1. Journalize Worldwide's entry to record bad debts expense for 2024 using the aging-of-receivables method. (Record debits first, then credits. Select the explanation on the last line of the journal entry table.) Date Accounts Debit Dec. 31 Data table Accounts Receivable Estimated percent uncollectible $ 0.60 Days 71,000 x 4% Print Age of Accounts Receivable Over 60 Days 4,000 x 25% $ Done Credit Total Receivables $ 75,000 Data table Accounts eceivable 75,000 Print Allowance for Bad Deb 1,978 Done

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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Concept explainers

Bad Debts

At the end of the accounting period, a financial statement is prepared by every company, then at that time while preparing the financial statement, the company determines among its total receivable amount how much portion of receivables is collected by the company during that accounting period.

Accounts Receivable

The word “account receivable” means the payment is yet to be made for the work that is already done. Generally, each and every business sells its goods and services either in cash or in credit. So, when the goods are sold on credit account receivable arise which means the company is going to get the payment from its customer to whom the goods are sold on credit. Usually, the credit period may be for a very short period of time and in some rare cases it takes a year.

Question

Worldwide Marble Importers had the following balances at December 31, 2024, before the year-end adjustments:
(Click the icon to view the balances.)
The aging of accounts receivable yields the following data:
(Click the icon to view the accounts receivable aging schedule.)
Requirements
1. Journalize Worldwide's entry to record bad debts expense for 2024 using the aging-of-receivables method.
2. Prepare a T-account to compute the ending balance of Allowance for Bad Debts.
Requirement 1. Journalize Worldwide's entry to record bad debts expense for 2024 using the aging-of-receivables method. (Record debits first, then credits. Select the explanation on the last line of the journal entry table.)
Date
Accounts
Dec.
31
Data table
Accounts Receivable
Estimated percent uncollectible
$
0-60 Days
71,000
x 4%
Print
Age of Accounts Receivable
Over 60 Days
4,000
x 25%
$
Done
Debit
$
Credit
C
Total Receivables
75,000
Data table
Accounts Receivable
75,000
Print
Allowance for Bad Debts
1,978
Done
X

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