The September30,2017,records of Perfecto Communications include these accounts:
ID: 2575099 • Letter: T
Question
The September30,2017,records of Perfecto Communications include these accounts:
Accounts Receivable . . . . . . . . . . . . . . . . . . . . . . . . . . .
$250,000
Allowance for Doubtful Accounts . . . . . . . . . . . . . . . . . . .
(8,300)
During the year,
Perfecto Communications estimates doubtful-account expense at 1% of credit sales. At year-end (December 31), the company ages its receivables and adjusts the balance in the Allowance for Doubtful Accounts to correspond to the aging schedule. During the last quarter of 2017, the company completed the following selected transactions:
Nov 30
Wrote off as uncollectible the $1,300 account receivable from Brown Carpets and the $400 account
receivable from Priceless Antiques.
Dec 31
Adjusted the Allowance for Doubtful Accounts and recorded doubtful-account expense at year-end,
based on the aging of receivables.
Age of Accounts
Accounts Receivable
1-30 Days
31-60 Days
61-90 Days
Over 90 Days
$236,000
$135,000
$55,000
$10,000
$36,000
Estimated percent uncollectible
0.2%
2%
15%
35%
Requirement 1. Record the transactions for the last quarter of 2017 in the journal. Explanations are not required. (Record debits first, then credits. Exclude explanations from any journal entries.)
Wrote off as uncollectible the $1,300 account receivable from Brown Carpets and the $400 account receivable from Priceless Antiques
.
Journal Entry
Date
Accounts
Debit
Credit
Nov
30
Adjusted the Allowance for Doubtful Accounts and recorded doubtful-account expense at year-end, based on the aging of receivables.
Journal Entry
Date
Accounts
Debit
Credit
Dec
31
Requirement 2. Prepare a T-account for Allowance for Doubtful Accounts with the appropriate beginning balances. Post the entries from Requirement 1 to that account.
Open the T-account by posting the beginning balance. Then post the entries to the Allowance for Doubtful Accounts T-account and calculate the ending balance.
Allowance for Doubtful Accounts
2016
2017
.
December
2016
,
$ 213 comma 000
,
$ 4 comma 700
.
Perfecto Communications
Comparative Balance Sheet (partial)
December 31, 2017 and 2016
2017
Less:
2016
Choose from any list or enter any number in the input fields and then continue to the next question.
Accounts Receivable . . . . . . . . . . . . . . . . . . . . . . . . . . .
$250,000
Allowance for Doubtful Accounts . . . . . . . . . . . . . . . . . . .
(8,300)
Explanation / Answer
Journal Entries :
Doubtful accounts as per Aging of Receivables:
Journal Entry:
T-Account :
Allowance for Doubtful Accounts A/c :
Partial Balance Sheet :
Abstract of Assets :
Date Accounts Titles Debit $ Credit $ Nov 30 Allowance for Doubtful Accounts 1300 Accounts Receivable 1300 Nov 30 Allowance for Doubtful Accounts 400 Accounts Receivable 400Related Questions
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