THE QUESTION HAVE FOUR PARTS ALREADY COMPLETED PART 1 Kingbird Merchandising use
ID: 2560403 • Letter: T
Question
THE QUESTION HAVE FOUR PARTS ALREADY COMPLETED PART 1
Kingbird Merchandising uses an aging schedule to determine its estimated uncollectible accounts at year end, and uses a single account for Allowance for Doubtful Accounts. An incomplete schedule is as follows:
(a)
Record the entry for bad debt expense for the current year assuming they use the table to determine the estimated uncollectible accounts. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. Round answers to 2 decimal places, e.g. 52.76.)
Date
Account Titles and Explanation
Debit
Credit
SHOW LIST OF ACCOUNTS
LINK TO TEXT
(b)
Record the entry for bad debt expense for the current year assuming Allowance for Doubtful Accounts has the same amount but the allowance should be 4% of accounts receivable. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. Round answers to 2 decimal places, e.g. 52.76.)
Date
Account Titles and Explanation
Debit
Credit
SHOW LIST OF ACCOUNTS
LINK TO TEXT
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SUBMIT ANSWER
(c)
The parts of this question must be completed in order. This part will be available when you complete the part above.
(d)
The parts of this question must be completed in order. This part will be available when you complete the part above.
THE QUESTION HAVE FOUR PARTS ALREADY COMPLETED PART 1
Kingbird Merchandising uses an aging schedule to determine its estimated uncollectible accounts at year end, and uses a single account for Allowance for Doubtful Accounts. An incomplete schedule is as follows:
KINGBIRD MERCHANDISINGAged Schedule of Accounts Receivable No. of Days
Outstanding Amount Estimated %
Uncollectible 0–30 days $61,000 0.40% 31–60 days 26,000 4.50% 61–90 days 11,500 18.00% Over 90 days 4,500 48.00% $103,000
On December 31, the trial balance before adjustments shows the following balances:
Debit Credit Accounts Receivable $103,000 Allowance for Doubtful Accounts 1,450
Explanation / Answer
(a) Record the entry for bad debt expense for the current year assuming they use the table to determine the estimated uncollectible accounts
(b) Record the entry for bad debt expense for the current year assuming Allowance for Doubtful Accounts has the same amount but the allowance should be 4% of accounts receivable.
(c) and (d) infomation not available
KINGBIRD MERCHANDISING Aged Schedule Of Accounts Receivable Number of Days Outstanding Amount Estimated % Uncollectible Estimated Uncollectible Accounts 0-30 Days $61,000 0.40% $244.00 31-60 Days $26,000 4.50% $1,170.00 61-90 Days $11,500 18% $2,070.00 Over 90 Days $4,500 48% $2,160.00 $103,000 $5,644.00Related Questions
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