The following summarizes the aging of accounts receivable for Johnston Supplies,

Question

The following summarizes the aging of accounts receivable for Johnston Supplies, Inc. as of July 31, 2016 Number of Days Unpaid Not yet due 1-30 days past due 31-60 days past due Over 60 days past due Total Accounts Receivable $127,000 $89,700 $54,100 $32,300 Historical % Uncollectible 3% 13% 19% 35% Required a. The unadjusted balance of the Allowance for Doubtful Accounts of Johnston Supplies, Inc. is a credit balance in the amount of $29,097 on July 31, 2016. Prepare the required adjusting entry to record Bad Debt Expense for the year. (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field.) View transaction list View journal entry worksheet No Date General Journal Debit Credit 1July 31, 2016 No Transaction Recorded

Explanation / Answer

Days unpaid Accounts Receivable % uncollectible Amount uncollectible Not yet due 127000 3% 3810 1-30 days 89700 13% 11661 31-60 days 54100 19% 10279 Over 60 days 32300 35% 11305 Total 303100 37055 a Bad debts expense 7958 =37055-29097        Allowance for Doubtful accounts 7958 b Allowance for Doubtful accounts 3131        Accounts Receivable 3131 c Allowance for Doubtful accounts Aug-15-16 Write off 3131 29097 Jul-31-16 Beg bal. Aug-15-16 End. Balance 33924 7958 Jul-31-16 Bad debts expense 37055 37055

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