PA5. LO 9.2 The following accounts receivable information pertains to Luxury Cruises. Past-Due Category Accounts Receivable Total Percentage Uncollectible 0-30 days 31-90 days Over 90 days $1,166,350 577,870 324,450 15% 33% 48% A. Determine the estimated uncollectible bad debt for Luxury Cruises in 2018 using the balance sheet aging of receivables method. B. Record the year-end 2018 adjusting journal entry for bad debt. C. Assume there was a previous debit balance in Allowance for Doubtful Accounts of $187,450; record the year-end entry for bad debt, taking this into consideration.
PA5. LO 9.2 The following accounts receivable information pertains to Luxury Cruises. Past-Due Category Accounts Receivable Total Percentage Uncollectible 0-30 days 31-90 days Over 90 days $1,166,350 577,870 324,450 15% 33% 48% A. Determine the estimated uncollectible bad debt for Luxury Cruises in 2018 using the balance sheet aging of receivables method. B. Record the year-end 2018 adjusting journal entry for bad debt. C. Assume there was a previous debit balance in Allowance for Doubtful Accounts of $187,450; record the year-end entry for bad debt, taking this into consideration.
Chapter9: Accounting For Receivables
Section: Chapter Questions
Problem 6PA: Funnel Direct recorded $1,345,780 in credit sales for the year and $695,455 in accounts receivable....
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