Bad Debt Expense: Aging Method Glencoe Supply had the following accounts receivable aging schedule at the end of a recent year. The balance in Glencoe’s allowance for doubtful accounts at the beginning of the year was $58,620 (credit). During the year, accounts in the total amount of $62,400 were written off. Required: 1. Determine bad debt expense. 2. Prepare the journal entry to record bad debt expense. 3. If Glencoe had written off $90,000 of receivables as uncollectible during the year, how much would bad debt expense reported on the income statement have changed?

Question

Want to see more full solutions like this?

Answer 1

Textbook Question

Chapter 5, Problem 68E

Bad Debt Expense: Aging Method

Glencoe Supply had the following accounts receivable aging schedule at the end of a recent year.

Chapter 5, Problem 68E, Bad Debt Expense: Aging Method Glencoe Supply had the following accounts receivable aging schedule

The balance in Glencoe’s allowance for doubtful accounts at the beginning of the year was $58,620 (credit). During the year, accounts in the total amount of $62,400 were written off.

Required:

1. Determine bad debt expense.

2. Prepare the journal entry to record bad debt expense.

3. If Glencoe had written off $90,000 of receivables as uncollectible during the year, how much would bad debt expense reported on the income statement have changed?

Expert Solution

To determine

(a)

Aging method:

This is a method in which the receivables are sorted according to their collectable estimation. This is done on the basis of their outstanding invoices period. Basically, aging means to check the how old an outstanding balance of receivable is present in the books.

The computation of bad debt expense.

Answer to Problem 68E

The amount of bad debt expense is $15,663.

Explanation of Solution

The Glencoe Supply accounts receivables and balance in allowance for doubtful accounts for the Glencoe Supply is as follows:

Accounts Receivables	Amount ($)	Proportion expected	Allowance required ($)
Current	3,10,500	0.005	1,553
1−30 days past due	47,500	0.01	475
31−45 days past due	25,000	0.13	3,250
46−90 days past due	12,800	0.20	2,560
91−135 days past due	6,100	0.25	1,525
Over 135 days past due	4,200	0.60	2,520
Total			11,883

The Glencoe Supply has an opening balance in the allowance for doubtful account of $58,620 credit balance. An amount of $62,400 is to be written off. This is given in the question.

The computation of bad debt expense for Glencoe Supply is as follows:

Allowance for doubtful accounts
Opening Balance	($58,620)
Add: Written off	$62,400
Add: Closing Balance (Given)	$11,883
Bad Debt Expense	$15,663

Expert Solution

To determine

(b)

Aging method:

This is a method in which the receivables are sorted according to their collectable estimation. This is done on the basis of their outstanding invoices period. Basically, aging means to check the how old an outstanding balance of receivable is present in the books.

The necessary adjusting journal entry for recording the bad debt.

Answer to Problem 68E

The necessary journal adjusting entry has been recorded properly.

Explanation of Solution

The Glencoe Supply has an opening balance in the allowance for doubtful account of $58,620 credit balance. An amount of $62,400 is to be written off. This is given in the question. The bad debt expense is $15,663.

The adjusting journal entry for the Glencoe Supply is as follows:

Date	Particulars	Debit ($)	Credit ($)
	Bad debt expense......... Allowance for Doubtful accounts.... (Record the adjusting entry for bad debt estimation)	$15,663	$15,663

Expert Solution

To determine

(a)

Aging method:

This is a method in which the receivables are sorted according to their collectable estimation. This is done on the basis of their outstanding invoices period. Basically, aging means to check the how old an outstanding balance of receivable is present in the books.

The computation of bad debt expense after changing in the written off amount.

Answer to Problem 68E

The amount of bad debt expense after the change in the written off amount is $43,263.

Explanation of Solution

The Glencoe Supply accounts receivables and balance in allowance for doubtful accounts for the Glencoe Supply is as follows:

Accounts Receivables	Amount ($)	Proportion expected	Allowance required ($)
Current	3,10,500	0.005	1,553
1−30 days past due	47,500	0.01	475
31−45 days past due	25,000	0.13	3,250
46−90 days past due	12,800	0.20	2,560
91−135 days past due	6,100	0.25	1,525
Over 135 days past due	4,200	0.60	2,520
Total			11,883

The Glencoe Supply has an opening balance in the allowance for doubtful account of $58,620 credit balance. An amount of $90,000 is to be written off. This is given in the question.

The computation of bad debt expense for Glencoe Supply is as follows:

Allowance for doubtful accounts
Opening Balance	($58,620)
Add: Written off	$90,000
Add: Closing Balance (Given)	$11,883
Bad Debt Expense	$43,263

Want to see more full solutions like this?

Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Students have asked these similar questions

Glencoe Supply had the following accounts receivable aging schedule at the end of a recent year. The balance in Glencoe’s allowance for doubtful accounts at the beginning of the year was$58,620 (credit). During the year, accounts in the total amount of $62,400 were written off.Required:1. Determine bad debt expense.2. Prepare the journal entry to record bad debt expense.3. If Glencoe had written off $90,000 of receivables as uncollectible during the year, how muchwould bad debt expense reported on the income statement have changed?

At the end of the current year, using the aging of receivable method, management estimated that $24,750 of the accounts receivable balance would be uncollectible. Prior to any year-end adjustments, the Allowance for Doubtful Accounts had a credit balance of $465. What adjusting entry should the company make at the end of the current year to record its estimated bad debts expense?

Allowance for Doubtful Accounts has a debit balance of $988 at the end of the year (before adjustment), and an analysis of accounts in the customers ledger indicates uncollectible receivables of $15,286. Which of the following entries records the proper adjusting entry for bad debt expense? Select the correct answer. a-debit Allowance for Doubtful Accounts, $15,286 credit Bad Debt Expense, $15,286 b-debit Bad Debt Expense, $16,274 credit Allowance for Doubtful Accounts, $16,274 c-debit Bad Debt Expense, $14,298 credit Allowance for Doubtful Accounts, $14,298 d-debit Bad Debt Expense, $988 credit Allowance for Doubtful Accounts, $988

Answer 2

Textbook Question

Chapter 5, Problem 68E

Bad Debt Expense: Aging Method

Glencoe Supply had the following accounts receivable aging schedule at the end of a recent year.

Chapter 5, Problem 68E, Bad Debt Expense: Aging Method Glencoe Supply had the following accounts receivable aging schedule

The balance in Glencoe’s allowance for doubtful accounts at the beginning of the year was $58,620 (credit). During the year, accounts in the total amount of $62,400 were written off.

Required:

1. Determine bad debt expense.

2. Prepare the journal entry to record bad debt expense.

3. If Glencoe had written off $90,000 of receivables as uncollectible during the year, how much would bad debt expense reported on the income statement have changed?

Expert Solution

To determine

(a)

Aging method:

This is a method in which the receivables are sorted according to their collectable estimation. This is done on the basis of their outstanding invoices period. Basically, aging means to check the how old an outstanding balance of receivable is present in the books.

The computation of bad debt expense.

Answer to Problem 68E

The amount of bad debt expense is $15,663.

Explanation of Solution

The Glencoe Supply accounts receivables and balance in allowance for doubtful accounts for the Glencoe Supply is as follows:

Accounts Receivables	Amount ($)	Proportion expected	Allowance required ($)
Current	3,10,500	0.005	1,553
1−30 days past due	47,500	0.01	475
31−45 days past due	25,000	0.13	3,250
46−90 days past due	12,800	0.20	2,560
91−135 days past due	6,100	0.25	1,525
Over 135 days past due	4,200	0.60	2,520
Total			11,883

The Glencoe Supply has an opening balance in the allowance for doubtful account of $58,620 credit balance. An amount of $62,400 is to be written off. This is given in the question.

The computation of bad debt expense for Glencoe Supply is as follows:

Allowance for doubtful accounts
Opening Balance	($58,620)
Add: Written off	$62,400
Add: Closing Balance (Given)	$11,883
Bad Debt Expense	$15,663

Expert Solution

To determine

(b)

Aging method:

This is a method in which the receivables are sorted according to their collectable estimation. This is done on the basis of their outstanding invoices period. Basically, aging means to check the how old an outstanding balance of receivable is present in the books.

The necessary adjusting journal entry for recording the bad debt.

Answer to Problem 68E

The necessary journal adjusting entry has been recorded properly.

Explanation of Solution

The Glencoe Supply has an opening balance in the allowance for doubtful account of $58,620 credit balance. An amount of $62,400 is to be written off. This is given in the question. The bad debt expense is $15,663.

The adjusting journal entry for the Glencoe Supply is as follows:

Date	Particulars	Debit ($)	Credit ($)
	Bad debt expense......... Allowance for Doubtful accounts.... (Record the adjusting entry for bad debt estimation)	$15,663	$15,663

Expert Solution

To determine

(a)

Aging method:

This is a method in which the receivables are sorted according to their collectable estimation. This is done on the basis of their outstanding invoices period. Basically, aging means to check the how old an outstanding balance of receivable is present in the books.

The computation of bad debt expense after changing in the written off amount.

Answer to Problem 68E

The amount of bad debt expense after the change in the written off amount is $43,263.

Explanation of Solution

The Glencoe Supply accounts receivables and balance in allowance for doubtful accounts for the Glencoe Supply is as follows:

Accounts Receivables	Amount ($)	Proportion expected	Allowance required ($)
Current	3,10,500	0.005	1,553
1−30 days past due	47,500	0.01	475
31−45 days past due	25,000	0.13	3,250
46−90 days past due	12,800	0.20	2,560
91−135 days past due	6,100	0.25	1,525
Over 135 days past due	4,200	0.60	2,520
Total			11,883

The Glencoe Supply has an opening balance in the allowance for doubtful account of $58,620 credit balance. An amount of $90,000 is to be written off. This is given in the question.

The computation of bad debt expense for Glencoe Supply is as follows:

Allowance for doubtful accounts
Opening Balance	($58,620)
Add: Written off	$90,000
Add: Closing Balance (Given)	$11,883
Bad Debt Expense	$43,263

Want to see more full solutions like this?

Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Answer 3

Textbook Question

Chapter 5, Problem 68E

Bad Debt Expense: Aging Method

Glencoe Supply had the following accounts receivable aging schedule at the end of a recent year.

Chapter 5, Problem 68E, Bad Debt Expense: Aging Method Glencoe Supply had the following accounts receivable aging schedule

The balance in Glencoe’s allowance for doubtful accounts at the beginning of the year was $58,620 (credit). During the year, accounts in the total amount of $62,400 were written off.

Required:

1. Determine bad debt expense.

2. Prepare the journal entry to record bad debt expense.

3. If Glencoe had written off $90,000 of receivables as uncollectible during the year, how much would bad debt expense reported on the income statement have changed?

Expert Solution

To determine

(a)

Aging method:

This is a method in which the receivables are sorted according to their collectable estimation. This is done on the basis of their outstanding invoices period. Basically, aging means to check the how old an outstanding balance of receivable is present in the books.

The computation of bad debt expense.

Answer to Problem 68E

The amount of bad debt expense is $15,663.

Explanation of Solution

The Glencoe Supply accounts receivables and balance in allowance for doubtful accounts for the Glencoe Supply is as follows:

Accounts Receivables	Amount ($)	Proportion expected	Allowance required ($)
Current	3,10,500	0.005	1,553
1−30 days past due	47,500	0.01	475
31−45 days past due	25,000	0.13	3,250
46−90 days past due	12,800	0.20	2,560
91−135 days past due	6,100	0.25	1,525
Over 135 days past due	4,200	0.60	2,520
Total			11,883

The Glencoe Supply has an opening balance in the allowance for doubtful account of $58,620 credit balance. An amount of $62,400 is to be written off. This is given in the question.

The computation of bad debt expense for Glencoe Supply is as follows:

Allowance for doubtful accounts
Opening Balance	($58,620)
Add: Written off	$62,400
Add: Closing Balance (Given)	$11,883
Bad Debt Expense	$15,663

Expert Solution

To determine

(b)

Aging method:

This is a method in which the receivables are sorted according to their collectable estimation. This is done on the basis of their outstanding invoices period. Basically, aging means to check the how old an outstanding balance of receivable is present in the books.

The necessary adjusting journal entry for recording the bad debt.

Answer to Problem 68E

The necessary journal adjusting entry has been recorded properly.

Explanation of Solution

The Glencoe Supply has an opening balance in the allowance for doubtful account of $58,620 credit balance. An amount of $62,400 is to be written off. This is given in the question. The bad debt expense is $15,663.

The adjusting journal entry for the Glencoe Supply is as follows:

Date	Particulars	Debit ($)	Credit ($)
	Bad debt expense......... Allowance for Doubtful accounts.... (Record the adjusting entry for bad debt estimation)	$15,663	$15,663

Expert Solution

To determine

(a)

Aging method:

This is a method in which the receivables are sorted according to their collectable estimation. This is done on the basis of their outstanding invoices period. Basically, aging means to check the how old an outstanding balance of receivable is present in the books.

The computation of bad debt expense after changing in the written off amount.

Answer to Problem 68E

The amount of bad debt expense after the change in the written off amount is $43,263.

Explanation of Solution

The Glencoe Supply accounts receivables and balance in allowance for doubtful accounts for the Glencoe Supply is as follows:

Accounts Receivables	Amount ($)	Proportion expected	Allowance required ($)
Current	3,10,500	0.005	1,553
1−30 days past due	47,500	0.01	475
31−45 days past due	25,000	0.13	3,250
46−90 days past due	12,800	0.20	2,560
91−135 days past due	6,100	0.25	1,525
Over 135 days past due	4,200	0.60	2,520
Total			11,883

The Glencoe Supply has an opening balance in the allowance for doubtful account of $58,620 credit balance. An amount of $90,000 is to be written off. This is given in the question.

The computation of bad debt expense for Glencoe Supply is as follows:

Allowance for doubtful accounts
Opening Balance	($58,620)
Add: Written off	$90,000
Add: Closing Balance (Given)	$11,883
Bad Debt Expense	$43,263

Want to see more full solutions like this?

Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Answer 4

Textbook Question

Chapter 5, Problem 68E

Bad Debt Expense: Aging Method

Glencoe Supply had the following accounts receivable aging schedule at the end of a recent year.

Chapter 5, Problem 68E, Bad Debt Expense: Aging Method Glencoe Supply had the following accounts receivable aging schedule

The balance in Glencoe’s allowance for doubtful accounts at the beginning of the year was $58,620 (credit). During the year, accounts in the total amount of $62,400 were written off.

Required:

1. Determine bad debt expense.

2. Prepare the journal entry to record bad debt expense.

3. If Glencoe had written off $90,000 of receivables as uncollectible during the year, how much would bad debt expense reported on the income statement have changed?

Expert Solution

To determine

(a)

Aging method:

This is a method in which the receivables are sorted according to their collectable estimation. This is done on the basis of their outstanding invoices period. Basically, aging means to check the how old an outstanding balance of receivable is present in the books.

The computation of bad debt expense.

Answer to Problem 68E

The amount of bad debt expense is $15,663.

Explanation of Solution

The Glencoe Supply accounts receivables and balance in allowance for doubtful accounts for the Glencoe Supply is as follows:

Accounts Receivables	Amount ($)	Proportion expected	Allowance required ($)
Current	3,10,500	0.005	1,553
1−30 days past due	47,500	0.01	475
31−45 days past due	25,000	0.13	3,250
46−90 days past due	12,800	0.20	2,560
91−135 days past due	6,100	0.25	1,525
Over 135 days past due	4,200	0.60	2,520
Total			11,883

The Glencoe Supply has an opening balance in the allowance for doubtful account of $58,620 credit balance. An amount of $62,400 is to be written off. This is given in the question.

The computation of bad debt expense for Glencoe Supply is as follows:

Allowance for doubtful accounts
Opening Balance	($58,620)
Add: Written off	$62,400
Add: Closing Balance (Given)	$11,883
Bad Debt Expense	$15,663

Expert Solution

To determine

(b)

Aging method:

This is a method in which the receivables are sorted according to their collectable estimation. This is done on the basis of their outstanding invoices period. Basically, aging means to check the how old an outstanding balance of receivable is present in the books.

The necessary adjusting journal entry for recording the bad debt.

Answer to Problem 68E

The necessary journal adjusting entry has been recorded properly.

Explanation of Solution

The Glencoe Supply has an opening balance in the allowance for doubtful account of $58,620 credit balance. An amount of $62,400 is to be written off. This is given in the question. The bad debt expense is $15,663.

The adjusting journal entry for the Glencoe Supply is as follows:

Date	Particulars	Debit ($)	Credit ($)
	Bad debt expense......... Allowance for Doubtful accounts.... (Record the adjusting entry for bad debt estimation)	$15,663	$15,663

Expert Solution

To determine

(a)

Aging method:

This is a method in which the receivables are sorted according to their collectable estimation. This is done on the basis of their outstanding invoices period. Basically, aging means to check the how old an outstanding balance of receivable is present in the books.

The computation of bad debt expense after changing in the written off amount.

Answer to Problem 68E

The amount of bad debt expense after the change in the written off amount is $43,263.

Explanation of Solution

The Glencoe Supply accounts receivables and balance in allowance for doubtful accounts for the Glencoe Supply is as follows:

Accounts Receivables	Amount ($)	Proportion expected	Allowance required ($)
Current	3,10,500	0.005	1,553
1−30 days past due	47,500	0.01	475
31−45 days past due	25,000	0.13	3,250
46−90 days past due	12,800	0.20	2,560
91−135 days past due	6,100	0.25	1,525
Over 135 days past due	4,200	0.60	2,520
Total			11,883

The Glencoe Supply has an opening balance in the allowance for doubtful account of $58,620 credit balance. An amount of $90,000 is to be written off. This is given in the question.

The computation of bad debt expense for Glencoe Supply is as follows:

Allowance for doubtful accounts
Opening Balance	($58,620)
Add: Written off	$90,000
Add: Closing Balance (Given)	$11,883
Bad Debt Expense	$43,263

Want to see more full solutions like this?

Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Answer 5

Textbook Question

Answer 6

Textbook Question

Answer 7

Expert Solution

To determine

(a)

Aging method:

This is a method in which the receivables are sorted according to their collectable estimation. This is done on the basis of their outstanding invoices period. Basically, aging means to check the how old an outstanding balance of receivable is present in the books.

The computation of bad debt expense.

Answer to Problem 68E

The amount of bad debt expense is $15,663.

Explanation of Solution

The Glencoe Supply accounts receivables and balance in allowance for doubtful accounts for the Glencoe Supply is as follows:

Accounts Receivables	Amount ($)	Proportion expected	Allowance required ($)
Current	3,10,500	0.005	1,553
1−30 days past due	47,500	0.01	475
31−45 days past due	25,000	0.13	3,250
46−90 days past due	12,800	0.20	2,560
91−135 days past due	6,100	0.25	1,525
Over 135 days past due	4,200	0.60	2,520
Total			11,883

The Glencoe Supply has an opening balance in the allowance for doubtful account of $58,620 credit balance. An amount of $62,400 is to be written off. This is given in the question.

The computation of bad debt expense for Glencoe Supply is as follows:

Allowance for doubtful accounts
Opening Balance	($58,620)
Add: Written off	$62,400
Add: Closing Balance (Given)	$11,883
Bad Debt Expense	$15,663

Expert Solution

To determine

(b)

Aging method:

This is a method in which the receivables are sorted according to their collectable estimation. This is done on the basis of their outstanding invoices period. Basically, aging means to check the how old an outstanding balance of receivable is present in the books.

The necessary adjusting journal entry for recording the bad debt.

Answer to Problem 68E

The necessary journal adjusting entry has been recorded properly.

Explanation of Solution

The Glencoe Supply has an opening balance in the allowance for doubtful account of $58,620 credit balance. An amount of $62,400 is to be written off. This is given in the question. The bad debt expense is $15,663.

The adjusting journal entry for the Glencoe Supply is as follows:

Date	Particulars	Debit ($)	Credit ($)
	Bad debt expense......... Allowance for Doubtful accounts.... (Record the adjusting entry for bad debt estimation)	$15,663	$15,663

Expert Solution

To determine

(a)

Aging method:

This is a method in which the receivables are sorted according to their collectable estimation. This is done on the basis of their outstanding invoices period. Basically, aging means to check the how old an outstanding balance of receivable is present in the books.

The computation of bad debt expense after changing in the written off amount.

Answer to Problem 68E

The amount of bad debt expense after the change in the written off amount is $43,263.

Explanation of Solution

The Glencoe Supply accounts receivables and balance in allowance for doubtful accounts for the Glencoe Supply is as follows:

Accounts Receivables	Amount ($)	Proportion expected	Allowance required ($)
Current	3,10,500	0.005	1,553
1−30 days past due	47,500	0.01	475
31−45 days past due	25,000	0.13	3,250
46−90 days past due	12,800	0.20	2,560
91−135 days past due	6,100	0.25	1,525
Over 135 days past due	4,200	0.60	2,520
Total			11,883

The Glencoe Supply has an opening balance in the allowance for doubtful account of $58,620 credit balance. An amount of $90,000 is to be written off. This is given in the question.

The computation of bad debt expense for Glencoe Supply is as follows:

Allowance for doubtful accounts
Opening Balance	($58,620)
Add: Written off	$90,000
Add: Closing Balance (Given)	$11,883
Bad Debt Expense	$43,263

Answer 8

Expert Solution

To determine

(a)

Aging method:

This is a method in which the receivables are sorted according to their collectable estimation. This is done on the basis of their outstanding invoices period. Basically, aging means to check the how old an outstanding balance of receivable is present in the books.

The computation of bad debt expense.

Answer to Problem 68E

The amount of bad debt expense is $15,663.

Explanation of Solution

The Glencoe Supply accounts receivables and balance in allowance for doubtful accounts for the Glencoe Supply is as follows:

Accounts Receivables	Amount ($)	Proportion expected	Allowance required ($)
Current	3,10,500	0.005	1,553
1−30 days past due	47,500	0.01	475
31−45 days past due	25,000	0.13	3,250
46−90 days past due	12,800	0.20	2,560
91−135 days past due	6,100	0.25	1,525
Over 135 days past due	4,200	0.60	2,520
Total			11,883

The Glencoe Supply has an opening balance in the allowance for doubtful account of $58,620 credit balance. An amount of $62,400 is to be written off. This is given in the question.

The computation of bad debt expense for Glencoe Supply is as follows:

Allowance for doubtful accounts
Opening Balance	($58,620)
Add: Written off	$62,400
Add: Closing Balance (Given)	$11,883
Bad Debt Expense	$15,663

Answer 9

Expert Solution

Answer 10

Expert Solution

Answer 11

Expert Solution

Answer 12

To determine

(a)

Aging method:

This is a method in which the receivables are sorted according to their collectable estimation. This is done on the basis of their outstanding invoices period. Basically, aging means to check the how old an outstanding balance of receivable is present in the books.

The computation of bad debt expense.

Answer 13

Answer to Problem 68E

The amount of bad debt expense is $15,663.

Answer 14

Explanation of Solution

The Glencoe Supply accounts receivables and balance in allowance for doubtful accounts for the Glencoe Supply is as follows:

Accounts Receivables	Amount ($)	Proportion expected	Allowance required ($)
Current	3,10,500	0.005	1,553
1−30 days past due	47,500	0.01	475
31−45 days past due	25,000	0.13	3,250
46−90 days past due	12,800	0.20	2,560
91−135 days past due	6,100	0.25	1,525
Over 135 days past due	4,200	0.60	2,520
Total			11,883

The Glencoe Supply has an opening balance in the allowance for doubtful account of $58,620 credit balance. An amount of $62,400 is to be written off. This is given in the question.

The computation of bad debt expense for Glencoe Supply is as follows:

Allowance for doubtful accounts
Opening Balance	($58,620)
Add: Written off	$62,400
Add: Closing Balance (Given)	$11,883
Bad Debt Expense	$15,663

Answer 15

Expert Solution

To determine

(b)

Aging method:

This is a method in which the receivables are sorted according to their collectable estimation. This is done on the basis of their outstanding invoices period. Basically, aging means to check the how old an outstanding balance of receivable is present in the books.

The necessary adjusting journal entry for recording the bad debt.

Answer to Problem 68E

The necessary journal adjusting entry has been recorded properly.

Explanation of Solution

The Glencoe Supply has an opening balance in the allowance for doubtful account of $58,620 credit balance. An amount of $62,400 is to be written off. This is given in the question. The bad debt expense is $15,663.

The adjusting journal entry for the Glencoe Supply is as follows:

Date	Particulars	Debit ($)	Credit ($)
	Bad debt expense......... Allowance for Doubtful accounts.... (Record the adjusting entry for bad debt estimation)	$15,663	$15,663

Answer 16

Expert Solution

Answer 17

Expert Solution

Answer 18

Expert Solution

Answer 19

To determine

(b)

Aging method:

This is a method in which the receivables are sorted according to their collectable estimation. This is done on the basis of their outstanding invoices period. Basically, aging means to check the how old an outstanding balance of receivable is present in the books.

The necessary adjusting journal entry for recording the bad debt.

Answer 20

Answer to Problem 68E

The necessary journal adjusting entry has been recorded properly.

Answer 21

Explanation of Solution

The Glencoe Supply has an opening balance in the allowance for doubtful account of $58,620 credit balance. An amount of $62,400 is to be written off. This is given in the question. The bad debt expense is $15,663.

The adjusting journal entry for the Glencoe Supply is as follows:

Date	Particulars	Debit ($)	Credit ($)
	Bad debt expense......... Allowance for Doubtful accounts.... (Record the adjusting entry for bad debt estimation)	$15,663	$15,663

Answer 22

Expert Solution

To determine

(a)

Aging method:

This is a method in which the receivables are sorted according to their collectable estimation. This is done on the basis of their outstanding invoices period. Basically, aging means to check the how old an outstanding balance of receivable is present in the books.

The computation of bad debt expense after changing in the written off amount.

Answer to Problem 68E

The amount of bad debt expense after the change in the written off amount is $43,263.

Explanation of Solution

The Glencoe Supply accounts receivables and balance in allowance for doubtful accounts for the Glencoe Supply is as follows:

Accounts Receivables	Amount ($)	Proportion expected	Allowance required ($)
Current	3,10,500	0.005	1,553
1−30 days past due	47,500	0.01	475
31−45 days past due	25,000	0.13	3,250
46−90 days past due	12,800	0.20	2,560
91−135 days past due	6,100	0.25	1,525
Over 135 days past due	4,200	0.60	2,520
Total			11,883

The Glencoe Supply has an opening balance in the allowance for doubtful account of $58,620 credit balance. An amount of $90,000 is to be written off. This is given in the question.

The computation of bad debt expense for Glencoe Supply is as follows:

Allowance for doubtful accounts
Opening Balance	($58,620)
Add: Written off	$90,000
Add: Closing Balance (Given)	$11,883
Bad Debt Expense	$43,263

Answer 23

Expert Solution

Answer 24

Expert Solution

Answer 25

Expert Solution

Answer 26

To determine

(a)

Aging method:

This is a method in which the receivables are sorted according to their collectable estimation. This is done on the basis of their outstanding invoices period. Basically, aging means to check the how old an outstanding balance of receivable is present in the books.

The computation of bad debt expense after changing in the written off amount.

Answer 27

Answer to Problem 68E

The amount of bad debt expense after the change in the written off amount is $43,263.

Answer 28

Explanation of Solution

The Glencoe Supply accounts receivables and balance in allowance for doubtful accounts for the Glencoe Supply is as follows:

Accounts Receivables	Amount ($)	Proportion expected	Allowance required ($)
Current	3,10,500	0.005	1,553
1−30 days past due	47,500	0.01	475
31−45 days past due	25,000	0.13	3,250
46−90 days past due	12,800	0.20	2,560
91−135 days past due	6,100	0.25	1,525
Over 135 days past due	4,200	0.60	2,520
Total			11,883

The Glencoe Supply has an opening balance in the allowance for doubtful account of $58,620 credit balance. An amount of $90,000 is to be written off. This is given in the question.

The computation of bad debt expense for Glencoe Supply is as follows: