Davis Company had a $700 credit balance in Allowance forDoubtful Accounts at December 31, 2015, before the current yearâsprovision for uncollectible accounts. An aging of the accountsreceivable reveled the following:
Estimated % Uncollectible
CurrentAccounts $120,000 1%
1-30 days pastdue 20,000 3%
31-60 days pastdue 10,000................................ 6%
61-90 days past due10,000...................................12%
Over 90 days past due8,000.....................................30%
Total Accounts Receivable 168,000
Determine the amount to recognize as bad debt expense onDecember 31, 2015.
Assume the same facts as above except that the Allowance forDoubtful Accounts account had a $500 debit balance before thecurrent yearâs provision for uncollectible accounts. What is theamount of bad debt expense to recognize for the year.
What is the amount that is reported as the net balance forAccounts Receivable as of December 31, 2015?
Davis Company had a $700 credit balance in Allowance forDoubtful Accounts at December 31, 2015, before the current yearâsprovision for uncollectible accounts. An aging of the accountsreceivable reveled the following:
Estimated % Uncollectible
CurrentAccounts $120,000 1%
1-30 days pastdue 20,000 3%
31-60 days pastdue 10,000................................ 6%
61-90 days past due10,000...................................12%
Over 90 days past due8,000.....................................30%
Total Accounts Receivable 168,000
Determine the amount to recognize as bad debt expense onDecember 31, 2015.
Assume the same facts as above except that the Allowance forDoubtful Accounts account had a $500 debit balance before thecurrent yearâs provision for uncollectible accounts. What is theamount of bad debt expense to recognize for the year.
What is the amount that is reported as the net balance forAccounts Receivable as of December 31, 2015?
Related questions
Kiley Company had a $900 credit balance in Allowance for Doubtful Accounts at December 31, 2005, before the current year's provision for uncollectible accounts. An aging of the accounts receivable revealed the following:
| Estimated Percentage | ||
| Uncollectible | ||
| Current Accounts | $120,000 | 1% |
| 1-30 days past due | 12,000 | 3% |
| 31-60 days past due | 10,000 | 6% |
| 61-90 days past due | 5,000 | 12% |
| Over 90 days past due | 8,000 | 30% |
| Total Accounts Receivable | $155,000 | |
Instructions
Please identify each of your answers with the letter of the transactions you are journalizing.
(a)Prepare the adjusting entry on December 31, 2005, to recognize bad debts expense.
(b)Assume the same facts as above except that the Allowance for Doubtful Accounts account had a $700 debit balance before the current year's provision for uncollectible accounts. Prepare the adjusting entry for the current year's provision for uncollectible accounts.
(c)Assume that the company has a policy of providing for bad debts at the rate of 1% of sales, that sales for 2005 were $500,000, and that Allowance for Doubtful Accounts had a $550 credit balance before adjustment. Prepare the adjusting entry for the current year's provision for bad debts.
