The following summarizes the aging of accounts receivable for Johnston Supplies,
ID: 2593890 • Letter: T
Question
The following summarizes the aging of accounts receivable for Johnston Supplies, Inc. as of July 31, 2016: Number of Days Unpaid Total Accounts Receivable Historical % Uncollectible Not yet due $127,600 5% 1-30 days past due $90,300 10% 31-60 days past due $54,700 16% Over 60 days past due $32,900 36% Required:
A. The unadjusted balance of the Allowance for Doubtful Accounts of Johnston Supplies, Inc. is a credit balance in the amount of $29,277 on July 31, 2016. Prepare the required adjusting entry to record Bad Debt Expense for the year. (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field.)
B. Johnston Supplies, Inc. writes off $3,191 of uncollectible accounts on August 15, 2016. Prepare the required adjusting entry to record the write-off. (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field.)
C. Use a T-account to determine the account balance in the Allowance for Doubtful Accounts on August 15, 2016.
B. Johnston Supplies, Inc. writes off $3,191 of uncollectible accounts on August 15, 2016. Prepare the required adjusting entry to record the write-off. (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field.)
C. Use a T-account to determine the account balance in the Allowance for Doubtful Accounts on August 15, 2016.
Explanation / Answer
a.
Amount of closing balance in allowance account at year end:
Amount of adjustment:
Entry:
B.
C.
Particulars Amount Rate of allowance Amount of allownace a b c=a*b Not yet due 127,600 5% 6,380 1-30 days past due 90,300 10% 9,030 31-60 days past due 54,700 16% 8,752 Over 60days past due 32,900 36% 11,844 36,006Related Questions
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