### Accounts Receivable and Allowance for Bad Debts Calculation**Context:**Worldwide Marble Importers has provided balances as of December 31, 2024, prior to year-end adjustments. The task involves adjusting bad debts using the aging-of-receivables method.#### Requirements:1. **Journalize the Entry for Bad Debts:** - Record the necessary journal entries to account for bad debts expense for 2024.2. **Prepare a T-account:** - Compute the ending balance of the Allowance for Bad Debts.---### Requirement 1: Journalize the Entry for Bad Debts- **Accounts Affected:** - Use the aging-of-receivables method to record the bad debts. - Record debits first, then credits.#### Journal Entry Form:- **Date:** Dec 31 - **Account Titles:** [To be filled] - **Debit:** [To be filled] - **Credit:** [To be filled] - **Explanation:** [To be selected or written]---### Requirement 2: T-account for Allowance for Bad Debts- Prepare a T-account to assess the final balance for the Allowance for Bad Debts.#### T-account structure: - **Allowance for Bad Debts** - **Debits:** [To be filled] - **Credits:** [To be filled]---### Data Table Analysis**Age of Accounts Receivable:**- **0-60 Days:** - Receivables: $74,000 - Estimated Uncollectible: 2%- **Over 60 Days:** - Receivables: $6,000 - Estimated Uncollectible: 25%- **Total Receivables:** $80,000**Allowance for Bad Debts Calculation:**- Calculate the estimated uncollectible amounts using the provided percentages and sum them to find the total allowance.**Summary Data:**- **Accounts Receivable:** $80,000- **Allowance for Bad Debts:** $2,068These tables assist with understanding how the aging method estimates bad debts, ensuring businesses account accurately for potential financial losses.

The aging-of-receivables method is employed in the entities to ascertain the amount that an entity would not be able to receive from its customers. Different time buckets show the percentage of default payments.Date Accounts Debit Credit Dec. 31 Bad Debt Expense $912 Allowance for Bad Debts $912 (To record the bad debt expense) Note: Computation of the bad debt expense: Particulars Amount ($) Estimated bad debt expense (($74,000 x 2%)+($6,000 x 25%)) $2,980 Deduct: Allowance for bad debt $(2,068) Bad debt expense $912 Allowance for Bad Debts $2,068 Beginning balance Closing balance $2,980 $912 Bad debt expense $2,980 $2,980

Business

Accounting

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 Requirement 2. Prepare a T-account to compute the ending balance of Allowance for Bad Debts. Allowance for Bad Debts Data table Accounts Receivable Estimated percent uncollectible S 0-60 Days 74,000 * 2% Print Debit Age of Accounts Receivable Over 60 Days 6,000 * 25% $ Done Credit Total Receivables S 80,000 Data table Accounts Receivable 80,000 Print Allowance for Bad Debts 2.068 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 Dec. 31 Requirement 2. Prepare a T-account to compute the ending balance of Allowance for Bad Debts. Allowance for Bad Debts Data table Accounts Receivable Estimated percent uncollectible S 0-60 Days 74,000 * 2% Print Debit Age of Accounts Receivable Over 60 Days 6,000 * 25% $ Done Credit Total Receivables S 80,000 Data table Accounts Receivable 80,000 Print Allowance for Bad Debts 2.068 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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please answer within the format by providing formula the detailed workingPlease provide answer in text (Without image)Please provide answer in text (Without image)Please provide answer in text (Without image) On December 31, a company has outstanding accounts receivable of $69,000, and it estimates that 3% of its receivables will be uncollectible. Prepare the adjusting journal entry at year-end to record bad debts expense if the Allowance for Doubtful Accounts has a: $1,173 credit balance before the adjustment. $345 debit balance before the adjustment.
Spring Garden Flowers had the following balances at December 31, 2024, before the year-end adjustments: E (Click the icon to view the balances.) The aging of accounts receivable yields the following data: E (Click the icon to view the accounts receivable aging schedule.) Requirements Journalize Spring's entry to record bad debts expense for 2024 using the aging-of-receivables method. 1. 2. Prepare a T-account to compute the ending balance of Allowance for Bad Debts. Requirement 1. Journalize Spring'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 Credit Dec. 31 Data Table Accounts Receivable Allowance for Bad Debts 66,000 1,615 Requirement 2. Prepare a T-account to compute the ending balance of Allowance for Bad Debts. Allowance for Bad Debts Print Done Data Table Age of Accounts Receivable 0-60 Days Over 60 Days Total…