The following summarizes the aging of accounts receivable for Johnston Supplies,

Question

The following summarizes the aging of accounts receivable for Johnston Supplies, Inc. as of July 31, 2016 Total Accounts Receivable $127,400 $90,100 $54,500 Historical % Uncollectible 3% 13% 19% Number of Days Unpaid Not yet due 1-30 days past due 31-60 days past due Over 60 days past due Required a. The unadjusted balance of the Allowance for Doubtful Accounts of Johnston Supplies, Inc. is a credit balance in the amount of $29,217 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.) View transaction list Journal entry worksheet Record the adjusting entry to record bad debt expense for the year July 31, 2016 Note: Enter debits before credits. Date General Journal Debit Credit July 31, 2016 Bad Debt Expense Allowance for Doubtful Accounts

Explanation / Answer

Notes: 1 CALCULATION OF PROVISION OF BAD DEBTS FOR THE YEAR END Age Group Amount %   Expense Value Not Yet Due $               1,27,400 3.0% $                                                                 3,822 1-30 Days $                  90,100 13.00% $                                                               11,713 91-120 Days $                  54,500 19.0% $                                                               10,355 Over 120 Days $                  32,700 33.0% $                                                               10,791 Total for Bad Debts Provision of Expenses $                                                               36,681 Notes: 2 Allowance for Doubtfull Debts (Opening Bal.) $                  29,217 Credit Balance as per Note 1 in Allowance for Doubtful Debts $                  36,681 Credit Need to be made the prvision for allowance $                     7,464 Credit Journal Entries Date Account Title and explanation Debit Credit Bade Debt Expenses $                     7,464 July 31, 2016      To Allowance for Doubtful Debts $                       7,464 (To Record the Bad Debt provision for the year ) Allowance for Doubtful Debts $                     3,171 August 31, 2016      To Account Receivable $                       3,171 (To Record the allowance for Doubtfull Debts for the year End) Answer = C = T Account for Allowance for Doubtul Accounts Allwance for Doubtfull Accounts Particulars Amount Debit Amount - Credit Particulars $                     29,217 Opening Balance August 31, 2016 Account Receivable $                     3,171 $                       7,464 July 31, 2016 = Bad Debt Expenses Closing Balance $                  33,510 TOTAL $                  36,681 $                     36,681

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