Determining Bad Debt Expense Using the Aging Method At the beginning of the year, Tennyson Auto Parts had an accounts receivable balance of $31,800 and a balance in the allowance for doubtful accounts of $2,980 (credit). During the year, Tennyson had credit sales of $624,300, collected accounts receivable in the amount of $602,700, wrote off $18,600 of accounts receivable, and had the following data for accounts receivable at the end of the period: Required: 1. Determine the desired post adjustment balance in allowance for doubtful accounts. 2. Determine the balance in allowance for doubtful accounts before the bad debt expense adjusting entry is posted. 3. Compute bad debt expense. 4. Prepare the adjusting entry to record bad debt expense.

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Answer 1

Textbook Question

Chapter 5, Problem 85APSA

Determining Bad Debt Expense Using the Aging Method

At the beginning of the year, Tennyson Auto Parts had an accounts receivable balance of $31,800 and a balance in the allowance for doubtful accounts of $2,980 (credit). During the year, Tennyson had credit sales of $624,300, collected accounts receivable in the amount of $602,700, wrote off $18,600 of accounts receivable, and had the following data for accounts receivable at the end of the period:

Chapter 5, Problem 85APSA, Determining Bad Debt Expense Using the Aging Method At the beginning of the year, Tennyson Auto

Required:

1. Determine the desired post adjustment balance in allowance for doubtful accounts.

2. Determine the balance in allowance for doubtful accounts before the bad debt expense adjusting entry is posted.

3. Compute bad debt expense.

4. Prepare the adjusting entry to record bad debt expense.

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.

To calculate:

The post adjustment balance in allowance for doubtful accounts.

Answer to Problem 85APSA

The post adjustment balance in allowance for doubtful accounts is $1,818.

Explanation of Solution

The Tennyson Auto Parts accounts receivables indicate a total of $34,800 which is as follows:

Accounts Receivables

Amount ($)	Proportion expected
Current	20,400	0.01
1−15 days past due	5,300	0.02
16−45 days past due	3,100	0.08
46−90 days past due	3,600	0.15
Over 90 days past due	2,400	0.30

This is given in the question.

The post adjustment balance in allowance for doubtful accounts for the Tennyson Auto Parts is as follows:

Accounts Receivables

Amount ($)	Proportion expected	Allowance required ($)
Current	20,400	0.01	204
1−15 days past due	5,300	0.02	106
16−45 days past due	3,100	0.08	248
46−90 days past due	3,600	0.15	540
Over 90 days past due	2,400	0.30	720
Total			1,818

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.

To calculate:

The balance in allowance for doubtful accounts before the adjustment of bad debt.

Answer to Problem 85APSA

The balance in allowance for doubtful accounts before the adjustment of bad debt expense is $15,620.

Explanation of Solution

The Tennyson Auto Parts has an opening balance in the allowance for doubtful account of $2,980 credit balance. An amount of $18,600 is to be written off. This is given in the question.

The computation of allowance for doubtful account for Tennyson Auto Parts is as follows:

Allowance for Doubtful Account
Particulars	Amount ($)	Particulars	Amount ($)
Write off	18,600	Opening Balance	2,980
		Bad debts	17,438
Post adjustment balance	1,818

So, the balance in the account before adjusting the bad debt expense is $15,620($18,600−$2,980).

Expert Solution

To determine

(c)

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 85APSA

The amount of bad debt expense is $17,438.

Explanation of Solution

The Tennyson Auto Parts has an opening balance in the allowance for doubtful account of $2,980 credit balance. An amount of $18,600 is to be written off. This is given in the question.

The computation of bad debt expense for Tennyson Auto Parts is as follows:

Allowance for Doubtful Account
Particulars	Amount ($)	Particulars	Amount ($)
Write off	18,600	Opening Balance	2,980
		Bad debts	17,438
Post adjustment balance	1,818

Expert Solution

To determine

(d)

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 85APSA

The necessary journal adjusting entry has been recorded properly.

Explanation of Solution

The Tennyson Auto Parts has an opening balance in the allowance for doubtful account of $2,980 credit balance. An amount of $18,600 is to be written off. This is given in the question. The bad debt expense is $17,438.

The adjusting journal entry for the Tennyson Auto Parts is as follows:

Date	Particulars	Debit ($)	Credit ($)
	Bad debt expense…………………………… Allowance for Doubtful accounts….……(Record the adjusting entry for bad debt estimation)	17,438	17,438

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Students have asked these similar questions

Determining Bad Debt Expense Using the Aging Method At the beginning of the year, Lennon Electronics had an accounts receivable balance of $29,800 and a balance in the allowance for doubtful accounts of $2,425 (credit). During the year, Lennon had credit sales of $752,693, collected accounts receivable in the amount of $653,800, wrote off $20,400 of accounts receivable, and had the following data for accounts receivable at the end of the period: Accounts Receivable Proportion Expected Category Amount to Default Current $22,700 0.01 1-15 days past due 8,600 0.04 16-45 days past due 4,900 0.09 46-90 days days past due 3,200 0.17 Over 90 days past due 2,100 0.30 $41,500 Lennon has a December 31 year-end. Required: 1. Determine the desired postadjustment balance in allowance for doubtful accounts. Round amounts to nearest dollar for each aging category. 2. Determine the preadjustment balance in allowance for doubtful accounts before the bad debt expense adjusting entry is posted. 3.…

During the current year, Sun Electronics, Incorporated, recorded credit sales of $760,000. Based on prior experience, it estimates a 1 percent bad debt rate on credit sales. a. On November 13 of the current year, an account receivable for $430 from a prior year was determined to be uncollectible and was written off. b. At year-end, the appropriate bad debt expense adjustment was recorded for the current year. Required: Indicate the effects of the transactions in the following table. Indicate the accounts affected and enter decreases to account categories with a minus sign. Transaction a. a. b. b. Assets Liabilities Stockholders' Equity

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Answer 2

Textbook Question

Chapter 5, Problem 85APSA

Determining Bad Debt Expense Using the Aging Method

At the beginning of the year, Tennyson Auto Parts had an accounts receivable balance of $31,800 and a balance in the allowance for doubtful accounts of $2,980 (credit). During the year, Tennyson had credit sales of $624,300, collected accounts receivable in the amount of $602,700, wrote off $18,600 of accounts receivable, and had the following data for accounts receivable at the end of the period:

Chapter 5, Problem 85APSA, Determining Bad Debt Expense Using the Aging Method At the beginning of the year, Tennyson Auto

Required:

1. Determine the desired post adjustment balance in allowance for doubtful accounts.

2. Determine the balance in allowance for doubtful accounts before the bad debt expense adjusting entry is posted.

3. Compute bad debt expense.

4. Prepare the adjusting entry to record bad debt expense.

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.

To calculate:

The post adjustment balance in allowance for doubtful accounts.

Answer to Problem 85APSA

The post adjustment balance in allowance for doubtful accounts is $1,818.

Explanation of Solution

The Tennyson Auto Parts accounts receivables indicate a total of $34,800 which is as follows:

Accounts Receivables

Amount ($)	Proportion expected
Current	20,400	0.01
1−15 days past due	5,300	0.02
16−45 days past due	3,100	0.08
46−90 days past due	3,600	0.15
Over 90 days past due	2,400	0.30

This is given in the question.

The post adjustment balance in allowance for doubtful accounts for the Tennyson Auto Parts is as follows:

Accounts Receivables

Amount ($)	Proportion expected	Allowance required ($)
Current	20,400	0.01	204
1−15 days past due	5,300	0.02	106
16−45 days past due	3,100	0.08	248
46−90 days past due	3,600	0.15	540
Over 90 days past due	2,400	0.30	720
Total			1,818

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.

To calculate:

The balance in allowance for doubtful accounts before the adjustment of bad debt.

Answer to Problem 85APSA

The balance in allowance for doubtful accounts before the adjustment of bad debt expense is $15,620.

Explanation of Solution

The Tennyson Auto Parts has an opening balance in the allowance for doubtful account of $2,980 credit balance. An amount of $18,600 is to be written off. This is given in the question.

The computation of allowance for doubtful account for Tennyson Auto Parts is as follows:

Allowance for Doubtful Account
Particulars	Amount ($)	Particulars	Amount ($)
Write off	18,600	Opening Balance	2,980
		Bad debts	17,438
Post adjustment balance	1,818

So, the balance in the account before adjusting the bad debt expense is $15,620($18,600−$2,980).

Expert Solution

To determine

(c)

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 85APSA

The amount of bad debt expense is $17,438.

Explanation of Solution

The Tennyson Auto Parts has an opening balance in the allowance for doubtful account of $2,980 credit balance. An amount of $18,600 is to be written off. This is given in the question.

The computation of bad debt expense for Tennyson Auto Parts is as follows:

Allowance for Doubtful Account
Particulars	Amount ($)	Particulars	Amount ($)
Write off	18,600	Opening Balance	2,980
		Bad debts	17,438
Post adjustment balance	1,818

Expert Solution

To determine

(d)

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 85APSA

The necessary journal adjusting entry has been recorded properly.

Explanation of Solution

The Tennyson Auto Parts has an opening balance in the allowance for doubtful account of $2,980 credit balance. An amount of $18,600 is to be written off. This is given in the question. The bad debt expense is $17,438.

The adjusting journal entry for the Tennyson Auto Parts is as follows:

Date	Particulars	Debit ($)	Credit ($)
	Bad debt expense…………………………… Allowance for Doubtful accounts….……(Record the adjusting entry for bad debt estimation)	17,438	17,438

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Answer 3

Textbook Question

Chapter 5, Problem 85APSA

Determining Bad Debt Expense Using the Aging Method

At the beginning of the year, Tennyson Auto Parts had an accounts receivable balance of $31,800 and a balance in the allowance for doubtful accounts of $2,980 (credit). During the year, Tennyson had credit sales of $624,300, collected accounts receivable in the amount of $602,700, wrote off $18,600 of accounts receivable, and had the following data for accounts receivable at the end of the period:

Chapter 5, Problem 85APSA, Determining Bad Debt Expense Using the Aging Method At the beginning of the year, Tennyson Auto

Required:

1. Determine the desired post adjustment balance in allowance for doubtful accounts.

2. Determine the balance in allowance for doubtful accounts before the bad debt expense adjusting entry is posted.

3. Compute bad debt expense.

4. Prepare the adjusting entry to record bad debt expense.

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.

To calculate:

The post adjustment balance in allowance for doubtful accounts.

Answer to Problem 85APSA

The post adjustment balance in allowance for doubtful accounts is $1,818.

Explanation of Solution

The Tennyson Auto Parts accounts receivables indicate a total of $34,800 which is as follows:

Accounts Receivables

Amount ($)	Proportion expected
Current	20,400	0.01
1−15 days past due	5,300	0.02
16−45 days past due	3,100	0.08
46−90 days past due	3,600	0.15
Over 90 days past due	2,400	0.30

This is given in the question.

The post adjustment balance in allowance for doubtful accounts for the Tennyson Auto Parts is as follows:

Accounts Receivables

Amount ($)	Proportion expected	Allowance required ($)
Current	20,400	0.01	204
1−15 days past due	5,300	0.02	106
16−45 days past due	3,100	0.08	248
46−90 days past due	3,600	0.15	540
Over 90 days past due	2,400	0.30	720
Total			1,818

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.

To calculate:

The balance in allowance for doubtful accounts before the adjustment of bad debt.

Answer to Problem 85APSA

The balance in allowance for doubtful accounts before the adjustment of bad debt expense is $15,620.

Explanation of Solution

The Tennyson Auto Parts has an opening balance in the allowance for doubtful account of $2,980 credit balance. An amount of $18,600 is to be written off. This is given in the question.

The computation of allowance for doubtful account for Tennyson Auto Parts is as follows:

Allowance for Doubtful Account
Particulars	Amount ($)	Particulars	Amount ($)
Write off	18,600	Opening Balance	2,980
		Bad debts	17,438
Post adjustment balance	1,818

So, the balance in the account before adjusting the bad debt expense is $15,620($18,600−$2,980).

Expert Solution

To determine

(c)

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 85APSA

The amount of bad debt expense is $17,438.

Explanation of Solution

The Tennyson Auto Parts has an opening balance in the allowance for doubtful account of $2,980 credit balance. An amount of $18,600 is to be written off. This is given in the question.

The computation of bad debt expense for Tennyson Auto Parts is as follows:

Allowance for Doubtful Account
Particulars	Amount ($)	Particulars	Amount ($)
Write off	18,600	Opening Balance	2,980
		Bad debts	17,438
Post adjustment balance	1,818

Expert Solution

To determine

(d)

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 85APSA

The necessary journal adjusting entry has been recorded properly.

Explanation of Solution

The Tennyson Auto Parts has an opening balance in the allowance for doubtful account of $2,980 credit balance. An amount of $18,600 is to be written off. This is given in the question. The bad debt expense is $17,438.

The adjusting journal entry for the Tennyson Auto Parts is as follows:

Date	Particulars	Debit ($)	Credit ($)
	Bad debt expense…………………………… Allowance for Doubtful accounts….……(Record the adjusting entry for bad debt estimation)	17,438	17,438

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Answer 4

Textbook Question

Chapter 5, Problem 85APSA

Determining Bad Debt Expense Using the Aging Method

At the beginning of the year, Tennyson Auto Parts had an accounts receivable balance of $31,800 and a balance in the allowance for doubtful accounts of $2,980 (credit). During the year, Tennyson had credit sales of $624,300, collected accounts receivable in the amount of $602,700, wrote off $18,600 of accounts receivable, and had the following data for accounts receivable at the end of the period:

Chapter 5, Problem 85APSA, Determining Bad Debt Expense Using the Aging Method At the beginning of the year, Tennyson Auto

Required:

1. Determine the desired post adjustment balance in allowance for doubtful accounts.

2. Determine the balance in allowance for doubtful accounts before the bad debt expense adjusting entry is posted.

3. Compute bad debt expense.

4. Prepare the adjusting entry to record bad debt expense.

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.

To calculate:

The post adjustment balance in allowance for doubtful accounts.

Answer to Problem 85APSA

The post adjustment balance in allowance for doubtful accounts is $1,818.

Explanation of Solution

The Tennyson Auto Parts accounts receivables indicate a total of $34,800 which is as follows:

Accounts Receivables

Amount ($)	Proportion expected
Current	20,400	0.01
1−15 days past due	5,300	0.02
16−45 days past due	3,100	0.08
46−90 days past due	3,600	0.15
Over 90 days past due	2,400	0.30

This is given in the question.

The post adjustment balance in allowance for doubtful accounts for the Tennyson Auto Parts is as follows:

Accounts Receivables

Amount ($)	Proportion expected	Allowance required ($)
Current	20,400	0.01	204
1−15 days past due	5,300	0.02	106
16−45 days past due	3,100	0.08	248
46−90 days past due	3,600	0.15	540
Over 90 days past due	2,400	0.30	720
Total			1,818

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.

To calculate:

The balance in allowance for doubtful accounts before the adjustment of bad debt.

Answer to Problem 85APSA

The balance in allowance for doubtful accounts before the adjustment of bad debt expense is $15,620.

Explanation of Solution

The Tennyson Auto Parts has an opening balance in the allowance for doubtful account of $2,980 credit balance. An amount of $18,600 is to be written off. This is given in the question.

The computation of allowance for doubtful account for Tennyson Auto Parts is as follows:

Allowance for Doubtful Account
Particulars	Amount ($)	Particulars	Amount ($)
Write off	18,600	Opening Balance	2,980
		Bad debts	17,438
Post adjustment balance	1,818

So, the balance in the account before adjusting the bad debt expense is $15,620($18,600−$2,980).

Expert Solution

To determine

(c)

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 85APSA

The amount of bad debt expense is $17,438.

Explanation of Solution

The Tennyson Auto Parts has an opening balance in the allowance for doubtful account of $2,980 credit balance. An amount of $18,600 is to be written off. This is given in the question.

The computation of bad debt expense for Tennyson Auto Parts is as follows:

Allowance for Doubtful Account
Particulars	Amount ($)	Particulars	Amount ($)
Write off	18,600	Opening Balance	2,980
		Bad debts	17,438
Post adjustment balance	1,818

Expert Solution

To determine

(d)

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 85APSA

The necessary journal adjusting entry has been recorded properly.

Explanation of Solution

The Tennyson Auto Parts has an opening balance in the allowance for doubtful account of $2,980 credit balance. An amount of $18,600 is to be written off. This is given in the question. The bad debt expense is $17,438.

The adjusting journal entry for the Tennyson Auto Parts is as follows:

Date	Particulars	Debit ($)	Credit ($)
	Bad debt expense…………………………… Allowance for Doubtful accounts….……(Record the adjusting entry for bad debt estimation)	17,438	17,438

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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.

To calculate:

The post adjustment balance in allowance for doubtful accounts.

Answer to Problem 85APSA

The post adjustment balance in allowance for doubtful accounts is $1,818.

Explanation of Solution

The Tennyson Auto Parts accounts receivables indicate a total of $34,800 which is as follows:

Accounts Receivables

Amount ($)	Proportion expected
Current	20,400	0.01
1−15 days past due	5,300	0.02
16−45 days past due	3,100	0.08
46−90 days past due	3,600	0.15
Over 90 days past due	2,400	0.30

This is given in the question.

The post adjustment balance in allowance for doubtful accounts for the Tennyson Auto Parts is as follows:

Accounts Receivables

Amount ($)	Proportion expected	Allowance required ($)
Current	20,400	0.01	204
1−15 days past due	5,300	0.02	106
16−45 days past due	3,100	0.08	248
46−90 days past due	3,600	0.15	540
Over 90 days past due	2,400	0.30	720
Total			1,818

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.

To calculate:

The balance in allowance for doubtful accounts before the adjustment of bad debt.

Answer to Problem 85APSA

The balance in allowance for doubtful accounts before the adjustment of bad debt expense is $15,620.

Explanation of Solution

The Tennyson Auto Parts has an opening balance in the allowance for doubtful account of $2,980 credit balance. An amount of $18,600 is to be written off. This is given in the question.

The computation of allowance for doubtful account for Tennyson Auto Parts is as follows:

Allowance for Doubtful Account
Particulars	Amount ($)	Particulars	Amount ($)
Write off	18,600	Opening Balance	2,980
		Bad debts	17,438
Post adjustment balance	1,818

So, the balance in the account before adjusting the bad debt expense is $15,620($18,600−$2,980).

Expert Solution

To determine

(c)

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 85APSA

The amount of bad debt expense is $17,438.

Explanation of Solution

The Tennyson Auto Parts has an opening balance in the allowance for doubtful account of $2,980 credit balance. An amount of $18,600 is to be written off. This is given in the question.

The computation of bad debt expense for Tennyson Auto Parts is as follows:

Allowance for Doubtful Account
Particulars	Amount ($)	Particulars	Amount ($)
Write off	18,600	Opening Balance	2,980
		Bad debts	17,438
Post adjustment balance	1,818

Expert Solution

To determine

(d)

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 85APSA

The necessary journal adjusting entry has been recorded properly.

Explanation of Solution

The Tennyson Auto Parts has an opening balance in the allowance for doubtful account of $2,980 credit balance. An amount of $18,600 is to be written off. This is given in the question. The bad debt expense is $17,438.

The adjusting journal entry for the Tennyson Auto Parts is as follows:

Date	Particulars	Debit ($)	Credit ($)
	Bad debt expense…………………………… Allowance for Doubtful accounts….……(Record the adjusting entry for bad debt estimation)	17,438	17,438

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.

To calculate:

The post adjustment balance in allowance for doubtful accounts.

Answer to Problem 85APSA

The post adjustment balance in allowance for doubtful accounts is $1,818.

Explanation of Solution

The Tennyson Auto Parts accounts receivables indicate a total of $34,800 which is as follows:

Accounts Receivables

Amount ($)	Proportion expected
Current	20,400	0.01
1−15 days past due	5,300	0.02
16−45 days past due	3,100	0.08
46−90 days past due	3,600	0.15
Over 90 days past due	2,400	0.30

This is given in the question.

The post adjustment balance in allowance for doubtful accounts for the Tennyson Auto Parts is as follows:

Accounts Receivables

Amount ($)	Proportion expected	Allowance required ($)
Current	20,400	0.01	204
1−15 days past due	5,300	0.02	106
16−45 days past due	3,100	0.08	248
46−90 days past due	3,600	0.15	540
Over 90 days past due	2,400	0.30	720
Total			1,818

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.

To calculate:

The post adjustment balance in allowance for doubtful accounts.

Answer 13

Answer to Problem 85APSA

The post adjustment balance in allowance for doubtful accounts is $1,818.

Answer 14

Explanation of Solution

The Tennyson Auto Parts accounts receivables indicate a total of $34,800 which is as follows:

Accounts Receivables

Amount ($)	Proportion expected
Current	20,400	0.01
1−15 days past due	5,300	0.02
16−45 days past due	3,100	0.08
46−90 days past due	3,600	0.15
Over 90 days past due	2,400	0.30

This is given in the question.

The post adjustment balance in allowance for doubtful accounts for the Tennyson Auto Parts is as follows:

Accounts Receivables

Amount ($)	Proportion expected	Allowance required ($)
Current	20,400	0.01	204
1−15 days past due	5,300	0.02	106
16−45 days past due	3,100	0.08	248
46−90 days past due	3,600	0.15	540
Over 90 days past due	2,400	0.30	720
Total			1,818

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.

To calculate:

The balance in allowance for doubtful accounts before the adjustment of bad debt.

Answer to Problem 85APSA

The balance in allowance for doubtful accounts before the adjustment of bad debt expense is $15,620.

Explanation of Solution

The Tennyson Auto Parts has an opening balance in the allowance for doubtful account of $2,980 credit balance. An amount of $18,600 is to be written off. This is given in the question.

The computation of allowance for doubtful account for Tennyson Auto Parts is as follows:

Allowance for Doubtful Account
Particulars	Amount ($)	Particulars	Amount ($)
Write off	18,600	Opening Balance	2,980
		Bad debts	17,438
Post adjustment balance	1,818

So, the balance in the account before adjusting the bad debt expense is $15,620($18,600−$2,980).

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.

To calculate:

The balance in allowance for doubtful accounts before the adjustment of bad debt.

Answer 20

Answer to Problem 85APSA

The balance in allowance for doubtful accounts before the adjustment of bad debt expense is $15,620.

Answer 21

Explanation of Solution

The Tennyson Auto Parts has an opening balance in the allowance for doubtful account of $2,980 credit balance. An amount of $18,600 is to be written off. This is given in the question.

The computation of allowance for doubtful account for Tennyson Auto Parts is as follows:

Allowance for Doubtful Account
Particulars	Amount ($)	Particulars	Amount ($)
Write off	18,600	Opening Balance	2,980
		Bad debts	17,438
Post adjustment balance	1,818

So, the balance in the account before adjusting the bad debt expense is $15,620($18,600−$2,980).

Answer 22

Expert Solution

To determine

(c)

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 85APSA

The amount of bad debt expense is $17,438.

Explanation of Solution

The Tennyson Auto Parts has an opening balance in the allowance for doubtful account of $2,980 credit balance. An amount of $18,600 is to be written off. This is given in the question.

The computation of bad debt expense for Tennyson Auto Parts is as follows:

Allowance for Doubtful Account
Particulars	Amount ($)	Particulars	Amount ($)
Write off	18,600	Opening Balance	2,980
		Bad debts	17,438
Post adjustment balance	1,818

Answer 23

Expert Solution

Answer 24

Expert Solution

Answer 25

Expert Solution

Answer 26

To determine

(c)

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 27

Answer to Problem 85APSA

The amount of bad debt expense is $17,438.

Answer 28

Explanation of Solution

The Tennyson Auto Parts has an opening balance in the allowance for doubtful account of $2,980 credit balance. An amount of $18,600 is to be written off. This is given in the question.

The computation of bad debt expense for Tennyson Auto Parts is as follows:

Allowance for Doubtful Account
Particulars	Amount ($)	Particulars	Amount ($)
Write off	18,600	Opening Balance	2,980
		Bad debts	17,438
Post adjustment balance	1,818

Answer 29

Expert Solution

To determine

(d)

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 85APSA

The necessary journal adjusting entry has been recorded properly.

Explanation of Solution

The Tennyson Auto Parts has an opening balance in the allowance for doubtful account of $2,980 credit balance. An amount of $18,600 is to be written off. This is given in the question. The bad debt expense is $17,438.

The adjusting journal entry for the Tennyson Auto Parts is as follows:

Date	Particulars	Debit ($)	Credit ($)
	Bad debt expense…………………………… Allowance for Doubtful accounts….……(Record the adjusting entry for bad debt estimation)	17,438	17,438

Answer 30

Expert Solution

Answer 31

Expert Solution

Answer 32

Expert Solution

Answer 33

To determine

(d)

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 34

Answer to Problem 85APSA

The necessary journal adjusting entry has been recorded properly.

Answer 35

Explanation of Solution

The Tennyson Auto Parts has an opening balance in the allowance for doubtful account of $2,980 credit balance. An amount of $18,600 is to be written off. This is given in the question. The bad debt expense is $17,438.

The adjusting journal entry for the Tennyson Auto Parts is as follows:

Date	Particulars	Debit ($)	Credit ($)
	Bad debt expense…………………………… Allowance for Doubtful accounts….……(Record the adjusting entry for bad debt estimation)	17,438	17,438