Intermediate Accounting (2nd Edition)
2nd Edition
ISBN: 9780134730370
Author: Elizabeth A. Gordon, Jana S. Raedy, Alexander J. Sannella
Publisher: PEARSON
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Chapter 9, Problem 9.7E
Bad Debt Expense, Aging of Accounts Receivable,
| Aging Category | Ending Balance | Percent Estimated Uncollectible |
| Current | $300,000 | 0% |
| 1-30 days past due | 620,000 | 12 |
| 31-60 days past due | 122,000 | 25 |
| 61-90 days past due | 173,500 | 70 |
| Ovor 90 days past duo | 63,000 | 90 |
The allowance for uncollectible accounts had a credit balance of $260,400 at the beginning of the year. During the year the company wrote off
Required
- a. Prepare all journal entries required to record the bad debt provision for the current year.
- b. Repeat part (a) assuming that the allowance for uncollectible accounts had a debit beginning balance of $23,545.
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Students have asked these similar questions
1)
Sustainable Supplies prepares the following aging of receivables analysis:
Accounts
receivable
Percent
uncollectible
$840.
Total
Days Past Due
Current 1 to 30
$
$
$
57,600 40,000 9,000
1%
3%
31 to 61 to Over 90
60
90
$
3,600
5%
$
2,000
8%
$
3,000
Prepare the adjusting entry to record bad debts expense assuming the unadjusted balance in the
Allowance for Doubtful Accounts is a $500 credit.
11%
A) Debit Bad Debts Expense $840; credit Allowance for Doubtful Accounts
B) Debit Allowance for Doubtful Accounts $840; credit Bad Debts Expense $840.
C) Debit Bad Debts Expense $1,840; credit Allowance for Doubtful Accounts $1,840.
D) Debit Allowance for Doubtful Accounts $1,840; credit Bad Debts Expense $1,840.
E) Debit Bad Debts Expense $1,340; credit Allowance for Doubtful Accounts $1,340.
An aging of a company's accounts receivable indicates that the estimate of uncollectible receivables totals $4,269. If Allowance for
Doubtful Accounts has a $1,349 credit balance, the adjustment to record the bad debt expense for the period will require a
Oa. debit to Bad Debt Expense for $4,269.
Ob. debit to Bad Debt Expense for $2,920.
Oc. debit to Bad Debt Expense for $5,618.
Od. credit to Allowance for Doubtful Accounts for $1,349.
d) Golden Music Company uses the allowance method to estimate uncollectible accounts
receivable. An aging of the accounts receivable revealed the following:
Estimated Percentage
Uncollectible
Current Accounts
$17,000
$1,500
$1,200
$500
$900
$21,100
1%
1-30 days past due
31–60 days past due
61–90 days past due
Over 90 days past due
Total Accounts Receivable
3%
6%
12%
25%
On 31 December 2021, the company has found out that a customer went bankrupt and
management agreed that the accounts receivable of $900 included above which is past due
for over 90 days can be written off.
i) Compute the total estimated uncollectible accounts receivable as at 31 December
2021.
ii) Prepare the journal entry year-end to write off the accounts receivable of $900 and
the adjusting journal entry to record the bad debts for the year ended 31 December
2021.
Chapter 9 Solutions
Intermediate Accounting (2nd Edition)
Ch. 9 - Prob. 9.1QCh. 9 - Do companies always classify cash as a current...Ch. 9 - Prob. 9.3QCh. 9 - Do accountants typically measure accounts...Ch. 9 - Under the allowance method, will the actual...Ch. 9 - How does an entity record a subsequent recovery of...Ch. 9 - Does the aging of accounts receivable method of...Ch. 9 - What is the difference between pledging accounts...Ch. 9 - How do companies account for receivables that are...Ch. 9 - Is the face value of a note receivable exchanged...
Ch. 9 - What do firms use to record the sales value of a...Ch. 9 - Explain why a company must have highly effective...Ch. 9 - The following are held by YRT Corporation at...Ch. 9 - Fernandez Company had an accounts receivable...Ch. 9 - On its December 31, Year 2, balance sheet, Red...Ch. 9 - Stanberry Company sold 500,000 of net accounts...Ch. 9 - On November 30, Year 1, Derin Corporation agreed...Ch. 9 - Which of the following disclosures about accounts...Ch. 9 - Prob. 9.1BECh. 9 - Prob. 9.2BECh. 9 - Prob. 9.3BECh. 9 - Prob. 9.4BECh. 9 - Prob. 9.5BECh. 9 - Sales Discounts, Most-Likely-Amount Method. On...Ch. 9 - Allowance for Uncollectible Accounts, Write-Off....Ch. 9 - Allowance for Uncollectible Accounts, Write-Off....Ch. 9 - Allowance for Uncollectible Accounts, Recovery....Ch. 9 - Bad Debt Expense, Journal Entry. Paul Anchor...Ch. 9 - Bad Debt Expense. Journal Entry. Paul Anchor,...Ch. 9 - Bad Debt Expense, Aging of Accounts Receivable,...Ch. 9 - Bad Debt Expense, Aging of Accounts Receivable,...Ch. 9 - Prob. 9.14BECh. 9 - Prob. 9.15BECh. 9 - Assigned Receivables. Using the information...Ch. 9 - Factoring Receivables without Recourse. Nicks...Ch. 9 - Prob. 9.18BECh. 9 - Notes Receivable. Welk Associates sold a piece of...Ch. 9 - Prob. 9.20BECh. 9 - Prob. 9.21BECh. 9 - Prob. 9.22BECh. 9 - Internal Controls. Identify whether the following...Ch. 9 - Prob. 9.24BECh. 9 - Prob. 9.25BECh. 9 - Prob. 9.26BECh. 9 - Prob. 9.27BECh. 9 - Prob. 9.28BECh. 9 - Prob. 9.1ECh. 9 - Volume Discounts, Sales Discounts. Sodesta Company...Ch. 9 - Allowance for Uncollectible Accounts, Journal...Ch. 9 - Bad Debt Expense, Aging of Accounts Receivable....Ch. 9 - Bad Debt Expense, Write-Offs, Journal Entry....Ch. 9 - Bad Debt Expense, Aging of Accounts Receivable,...Ch. 9 - Bad Debt Expense, Aging of Accounts Receivable,...Ch. 9 - Bad Debt Expense, Percentage of Accounts...Ch. 9 - Prob. 9.9ECh. 9 - Assigning Receivables, Factoring Receivables....Ch. 9 - Prob. 9.11ECh. 9 - Factoring Receivables with and without Recourse....Ch. 9 - Factoring Receivables without Recourse, Factoring...Ch. 9 - Prob. 9.14ECh. 9 - Prob. 9.15ECh. 9 - Notes Receivable with Year-End Interest Accrual,...Ch. 9 - Prob. 9.18ECh. 9 - Allowance for Uncollectible Accounts, Journal...Ch. 9 - Prob. 9.2PCh. 9 - Allowance for Uncollectible Accounts, Aging of...Ch. 9 - Prob. 9.4PCh. 9 - Bad Debt Expense, Aging of Accounts Receivable....Ch. 9 - Bad Debt Expense, Aging of Accounts Receivable,...Ch. 9 - Prob. 9.7PCh. 9 - Prob. 9.8PCh. 9 - Aging of Accounts Receivable, Write-Offs,...Ch. 9 - Disclosure. Using the transactions listed in P9-9,...Ch. 9 - Accounts Receivable Disclosure. Using Kellogg...Ch. 9 - Prob. 1JCCh. 9 - Financial Statement Analysis Case: Revlon The...Ch. 9 - Prob. 1SSCCh. 9 - Surfing the Standards Case 2: Costs Associated...Ch. 9 - Prob. 1BCC
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- Bad Debt Expense: Aging Method Glencoe Supply had the following accounts receivable aging schedule at the end of a recent year. The balance in Glencoes allowance for doubtful accounts at the beginning of the year was $58,620 (credit). During the year, accounts in the total amount of $62,400 were written off. Required: 1. Determine bad debt expense. 2. Prepare the journal entry to record bad debt expense. 3. If Glencoe had written off $90,000 of receivables as uncollectible during the year, how much would bad debt expense reported on the income statement have changed?arrow_forwardEstimating allowance for doubtful accounts Evers Industries has a past history of uncollectible accounts, as follows. Estimate the allowance for doubtful accounts, based on the aging of receivables schedule you completed in Exercise 8-8.arrow_forwardAging Method Bad Debt Expense Cindy Bagnal, the manager of Cayce Printing Service, has provided the following aging schedule for Cayces accounts receivable Cindy indicates that the $121,100 of accounts receivable identified in the table does not include $4,600 of receivables that should be written off. Required: 1. Journalize the $4,600 write-off. 2. Determine the desired post adjustment balance in allowance for doubtful accounts (round each aging category to the nearest dollar). 3. If the balance in allowance for doubtful accounts before the $4,600 write-off was a debit of $700, compute bad debt expense. Prepare the adjusting entry to record bad debt expense.arrow_forward
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