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The following accounts receivable information pertains to Select Distributors. A. Determine the estimated uncollectible bad debt for Select Distributors 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 $233,180; record the year-end entry for bad debt, taking this into consideration. D. Assume there was a previous credit balance in Allowance for Doubtful Accounts of $199,440; record the year-end entry for bad debt, taking this into consideration. E. On March 21, 2019, Select Distributors identifies Aida Norman’s account as uncollectible in the amount of $10,890. Record the entry for identification.

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Principles of Accounting Volume 1

19th Edition
OpenStax
Publisher: OpenStax College
ISBN: 9781947172685

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FindFindarrow_forward

Principles of Accounting Volume 1

19th Edition
OpenStax
Publisher: OpenStax College
ISBN: 9781947172685
Chapter 9, Problem 5PB
Textbook Problem
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The following accounts receivable information pertains to Select Distributors.

Chapter 9, Problem 5PB, The following accounts receivable information pertains to Select Distributors. A. Determine the

A. Determine the estimated uncollectible bad debt for Select Distributors 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 $233,180; record the year-end entry for bad debt, taking this into consideration.

D. Assume there was a previous credit balance in Allowance for Doubtful Accounts of $199,440; record the year-end entry for bad debt, taking this into consideration.

E. On March 21, 2019, Select Distributors identifies Aida Norman’s account as uncollectible in the amount of $10,890. Record the entry for identification.

To determine

(a)

Introduction:

Journal entries record business transactions. These transactions have double effect on accounts such that total of all assets equate with liabilities and equities.

To compute:

Uncollectible percentage using the income statement method.

Explanation of Solution

Calculation of total estimated uncollectible bad debt using the balance sheet aging of receivables method.

TotalEstimatedUncollectible=$945,620×19%+$499,110×35%+$

To determine

(b)

Introduction:

Journal entries record business transactions. These transactions have double effect on accounts such that total of all assets equate with liabilities and equities.

To journalize:

Adjusting journal entry for bad debt.

To determine

(c)

Introduction:

Journal entries record business transactions. These transactions have double effect on accounts such that total of all assets equate with liabilities and equities.

To journalize:

Debit balance of Allowances for Doubtful Accounts using balance sheet method.

To determine

(d)

Introduction:

Journal entries record business transactions. These transactions have double effect on accounts such that total of all assets equate with liabilities and equities.

To journalize:

Credit balance of Allowance for Doubtful Accounts using the balance sheet method.

To determine

(e)

Introduction:

Journal entries record business transactions. These transactions have double effect on accounts such that total of all assets equate with liabilities and equities.

To journalize: Specific customer identified as an uncollectible account.

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Chapter 9 Solutions

Principles of Accounting Volume 1
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