All categories

3 years ago

Required information

Business

1 answer:

liberstina [14]3 years ago

7 0

Answer and Explanation:

The estimation of the required balances are as follows:

Age Balance Estimated Estimated Uncollectible amount

of Dec-31 Percentage

Accounts Uncollectible

Not yet due $620,000 0.85% $5,270.00

1–30 days $248,000 1.60% $3,968.00

31–60 days $49,600 6.10% $3,025.60

61–90 days $24,800 30.75% $7,626.00

Over 90 days $4,960 64.00% $3,174.40

Total $947,360 $23,064

Now the journal entry is

but before that following calculation is needed

Ending balance of allowance for doubtful account $23,064

Less: Opening balance in allowance for doubtful account -$19,564

Bad debt expense for the year $3,500

The journal entry is

Bad debt expense $ 3,500

To Allowance for doubtful accounts $ 3,500

(Being bad debt expense is recorded)

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Explanation:

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Answer:

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Answer:

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Explanation:

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Answer:

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