Zen desk incorporated uses the aging approach to estimate bad debt expense. The balance of account receivable on Dec 31st 2017, was $72,000 and is aged on the basis of three-time periods as follows: (1) not yet due, $48,000, (2) up to 120 days past due, $16,500, and (3) more than 120 days past due, $7,500. Experience has shown that for each age group, the average loss rate on the amount of the receivables at year-end due to uncollectability is (1) 2 percent, (2) 14 percent, and (3) 35 percent, respectively. The opening balance of Allowance for Doubtful Accounts balance is $2,700 (credit) on Jan 1st 2017. What is the journal entry for recording bad debt expense for the year 2017.

Zen desk incorporated uses the aging approach to estimate bad debt expense. The balance of account receivable on Dec 31st 2017, was $72,000 and is aged on the basis of three-time periods as follows: (1) not yet due, $48,000, (2) up to 120 days past due, $16,500, and (3) more than 120 days past due, $7,500. Experience has shown that for each age group, the average loss rate on the amount of the receivables at year-end due to uncollectability is (1) 2 percent, (2) 14 percent, and (3) 35 percent, respectively. The opening balance of Allowance for Doubtful Accounts balance is $2,700 (credit) on Jan 1st 2017. What is the journal entry for recording bad debt expense for the year 2017.

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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