111 Sprint 4:40 PM Done 5 of 7 d. Give the adjusting journal entry to record the
ID: 2577051 • Letter: 1
Question
111 Sprint 4:40 PM Done 5 of 7 d. Give the adjusting journal entry to record the bad debt expense for this year if Johnson Company uses the aging of accounts receivable method to determine the amount of uncollectible, and the begineing balance in allowance for doubtful accounts is a $5,000 debit balance not a $38,000 credit balance Aging Aging Balance Prob of Non-cellect ible Current -60 days past ue 90,000 61- 120 days past due 121-180 days past due35,000 Over 180 days past due 20.000 10% 20% 30% 50% 55,000 Give the allowance for doubtfal accounts T-account under the percentage of acceunts receivable method if the bepinning debit balance is $5,000. e. Allowance for Doubtful Accounts Show how the accounts receivable would be presented on the balance Sheet under the aging evethod f. Aging C.Explanation / Answer
d.
Beginning debit balance in the allowance for doubtful accounts = 5,000
Ending balance in the allowance for doubtful accounts = 61,750
Allowance for uncollectible during the year = Beginning debit balance in the allowance for doubtful accounts + Ending balance in the allowance for doubtful accounts
= 5,000 + 61,750
= 66,750
Journal entry
e.
Allowance for doubtful accounts
f.
Accounts receivable on the Balance sheet under the aging method
Ageing Balance Prob. of Non-collectible Ageing Current 425,000 5% 21,250 1 - 60 days past due 90,000 10% 9,000 61 - 120 days past due 55,000 20% 11,000 121 - 180 daya past due 35,000 30% 10,500 Over 180 days past due 20,000 50% 10,000 Total 625,000 61,750Related Questions
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