Chapter 7 (TBC)-Accounts Receivable The December 31, 20x4, balance sheet of Braz

Question

Chapter 7 (TBC)-Accounts Receivable The December 31, 20x4, balance sheet of Brazos Rubber Products reports the following: Accounts Receivable Allowance for Doubtful Accounts (CR balance) $141,000 3,200 At the end of each quarter, Brazos estimates doubtful accounts expense to be 1 ½% of credit sales. At the end of the year, the company ages its receivable and adjusts the balance in Alowance for Doubtful correspond to the aging schedule. During 20X5 Brazos completes the following accounts selected transactions: Jan. 16 Wrote off as uncollectible the $403 account receivable from DePaul, Inc., and the $1,719 account receivable from Frank Shoes Company Mar. 31 Recorded doubtful account expense based on credit sales of $100,000 Apr. 15 Received $300 from Frank Shoe Company after prolonged negotiations with Frank Shoe Company's attomey. Brazos has no hope of collecting the remainder May 13 Wrote off as uncollectible the $2,980 account receivable from M. E. Cate. June 30 Recorded doubtful account expense based on credit sales of $114,000 Aug. 9 Made a compound entry to write off the following uncollectible accounts: Clifford, Inc, $235; Matz Co., $188; and Lew Norris, $1,006 Sept. 30 Recorded doubtful account expense based on credit sales of $130,000 Oct. 18 Wrote off as uncollectible the 5767 account receivable from Bliss Co and the $430 Dec. 31 Recorded doubtful account expense based on the following summary of the aging account receivable from Micro Data. of accounts receivable. Age of Accounts Receivable Total $127,400 $74,600 $31,100 $12,000 Estimated $9,700 5 0% -300% 31 Made the closing entry for Doubtful Accounts Expense for the entire year Dec. Problem requires journal paper. - Recend into qenen ourna oud pot ees tu thet accowct keep a rwnn

Explanation / Answer

Date Account titles Debit Credit Jan 16. Allowance for dubtful accounts (403+1719) 2122 Accounts receivable 2122 (Write-off accounts receivable as Doubtful account) Mar 31. Doubtful account expense 1500 Allowance for dubtful accounts 1500 (100000*1.5%) (Estimated Doubtful account expense) Apr 15. Accounts receivable 300 Allowance for dubtful accounts 300 (Recovered Doubtful account written off) Cash 300 Accounts receivable 300 (Recovered Doubtful account written off) May 13. Allowance for dubtful accounts 2980 Accounts receivable 2980 (Write-off accounts receivable as Doubtful account) June 30. Doubtful account expense 1710 Allowance for dubtful accounts 1710 (114000*1.5%) (Estimated Doubtful account expense) Aug 9. Allowance for dubtful accounts 1429 Accounts receivable 1429 (235+188+1006) (Write-off accounts receivable as Doubtful account) Sept 30. Doubtful account expense 1950 Allowance for dubtful accounts 1950 (130000*1.5%) (Estimated Doubtful account expense) Oct 18. Allowance for dubtful accounts 1197 Accounts receivable 1197 (767+430) (Write-off accounts receivable as Doubtful account) Dec 31. Doubtful account expense 2777 Allowance for dubtful accounts 2777 (Note:1) (Estimated Doubtful account expense) Dec 31. Income summary 7937 Doubtful account expense 7937 (1500+1710+1950+2777) (Closing entry for doubtful account expense) Notes: 1. Aging of accounts receivable: 1-30 days 31-60 days 61-90 days Over 90 days Total Accounts receivable 74600 31100 12000 9700 Estimated % uncollectible 0.10% 0.40% 5% 30% Allowance 74.6 124.4 600 2910 3709 Closing balance of allowance gor doubtful accounts=3709 (Credit) Current balance=3200-2122+1500+300-2980+1710-1429+1950-1197=932 (Credit) Additional credit to be given=3709-932=2777 Allowance for doubtful accounts Date Account titles Debit Date Account titles Credit lk Jan 16. Accounts receivable 2122 Jan 1. Balance 3200 May 13. Accounts receivable 2980 Mar 31. Doubtful account expense 1500 Aug 9. Accounts receivable 1429 Apr 15. Accounts receivable 300 Oct 18. Accounts receivable 1197 June 30. Doubtful account expense 1710 Sep 30. Doubtful account expense 1950 Dec 31. Doubtful account expense 2777 Dec 31. Balance 3709 11437 11437

Related Questions

Navigate

• Browse (All)
• Browse C
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.