BE7-5 (L03) Wilton, Inc. had net sales in 2017 of $1,400,000. At December 31, 20
ID: 2571152 • Letter: B
Question
BE7-5 (L03) Wilton, Inc. had net sales in 2017 of $1,400,000. At December 31, 2017, before adjusting entries, the balances in selected accounts were Accounts Receivable $250,000 debit, and Allowance for Doubtful Accounts $2,400 credit. If Wilton esti- mates that 8% of its receivables will prove to be uncollectible, prepare the December 31, 2017 journal entry to record bad debt expense BE7-6 (L03) Use the information presented in BE7-5 for Wilton, Inc Instead of an All van e for Dubtful Accounts Balance of$2400credit the balance was S100 debit. Assume that l0% of accounts receivable will prove to be uncollectible. Prepare the entry to record bad debt expense (a) (b) Instead of estimating uncollectibles based on a percentage of receivables, assume Wilton prepares an aging schedule that estimates total uncollectible accounts at $24,600. (Assume an allowance of $2,400 credit.) Prepare the entry to re- cord bad debtExplanation / Answer
7-5)bad debt expnese(db) 8%*1400000=112000
allowance for doubtful accounts(cr) 112000
7-6)
a)
bad debt expnese(db) 22600
allowance for doubtful accounts(cr) =(10%*250000)-2400=22600
b)bad debt expnese(db) 8%*1400000=22200
allowance for doubtful accounts(cr) 24600-2400=22200
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