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Surf and Sun had the following balances at December 31, 2018, before the year-en

ID: 2546629 • Letter: S

Question

Surf and Sun had the following balances at December 31, 2018, before the year-end adjustments EEB (Click the icon to view the balances and accounts receivable aging schedule.) 1. 2. Journalize Surf and Sun's entry to record bad debts expense for 2018 using the aging-of-receivables method. Prepare a T-account to compute the ending balance of Allowance for Bad Debts Requirement 1. Journalize Surf and Sun's entry to record bad debts expense for 2018 using the aging-of-receivables method. (Record debits first, then credits. Select the explanation on the last line of the journal entry table.) Date Accounts Debit Credit Data Table Dec. 31 Accounts Receivable Allowance for Bad Debts 81,000 2,063 The aging of accounts receivable yields the following data Age of Accounts Receivable 0.60 Days Over 60 Days 3,000 x 23% Total Receivables Accounts Receivable 78,000 S 81,000 Estimated percent uncollectible x 2% Print Done

Explanation / Answer

Estimated uncollectible account at end : [78000*.02]+[3000*.23]

                = 1560+ 690

                = 2250

Bad debt expense : 2250 -2063 credit balance in allowance account = 187

2)

Date Account Debit credit Dec 31 Bad Debt expense 187 Allowance for Bad debt 187 [being bad debt expense recorded]