Empire Bridal Boutique has a credit balance of $620 in its allowance for bad debts account as of December 31, 20--. An analysis of the accounts receivable of Empire Bridal Boutique as of the same date, reveals the following: Age Interval Balance Est. Percentage Uncollectible Not due $63,000 2% 1–30 days past due 7,100 5% 31–60 days past due 6,300 11% Over 60 days past due 2,900 40% $79,300 Required: 1. Prepare an aging schedule as of December 31, 20--. Age Interval Est. Amount Uncollectible Not due $fill in the blank 73118eff5feef82_1 1–30 days past due fill in the blank 73118eff5feef82_2 31–60 days past due fill in the blank 73118eff5feef82_3 Over 60 days past due fill in the blank 73118eff5feef82_4 $fill in the blank 73118eff5feef82_5 2. Prepare the adjusting entry to record the Bad Debt Expense at the end of the year. If an amount box does not require an entry, leave it blank. Page: 1 DATE DESCRIPTION POST. REF. DEBIT CREDIT 1 Dec. 31 Bad Debt Expense fill in the blank da390901b06a02e_2 fill in the blank da390901b06a02e_3 1 2 Allowance for Bad Debts fill in the blank da390901b06a02e_5 fill in the blank da390901b06a02e_6 2 3. Determine the net accounts receivables at December 31, 20--. Net accounts receivable $fill in the blank 02c022fc8fbffd6_1
Bad Debts
At the end of the accounting period, a financial statement is prepared by every company, then at that time while preparing the financial statement, the company determines among its total receivable amount how much portion of receivables is collected by the company during that accounting period.
Accounts Receivable
The word “account receivable” means the payment is yet to be made for the work that is already done. Generally, each and every business sells its goods and services either in cash or in credit. So, when the goods are sold on credit account receivable arise which means the company is going to get the payment from its customer to whom the goods are sold on credit. Usually, the credit period may be for a very short period of time and in some rare cases it takes a year.
Empire Bridal Boutique has a credit balance of $620 in its allowance for
| Age Interval | Balance | Est. Percentage Uncollectible |
| Not due | $63,000 | 2% |
| 1–30 days past due | 7,100 | 5% |
| 31–60 days past due | 6,300 | 11% |
| Over 60 days past due | 2,900 | 40% |
| $79,300 |
Required:
1. Prepare an aging schedule as of December 31, 20--.
| Age Interval | Est. Amount Uncollectible |
| Not due | $fill in the blank 73118eff5feef82_1 |
| 1–30 days past due | fill in the blank 73118eff5feef82_2 |
| 31–60 days past due | fill in the blank 73118eff5feef82_3 |
| Over 60 days past due | fill in the blank 73118eff5feef82_4 |
| $fill in the blank 73118eff5feef82_5 |
2. Prepare the
| DATE | DESCRIPTION | POST. REF. |
DEBIT | CREDIT | ||
|---|---|---|---|---|---|---|
| 1 | Dec. 31 | Bad Debt Expense | fill in the blank da390901b06a02e_2 | fill in the blank da390901b06a02e_3 | 1 | |
| 2 | Allowance for Bad Debts | fill in the blank da390901b06a02e_5 | fill in the blank da390901b06a02e_6 | 2 |
3. Determine the net accounts receivables at December 31, 20--.
| Net accounts receivable | $fill in the blank 02c022fc8fbffd6_1 |
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