Bad debts expense: The bad debts expense can be defined as the loss or the expense incurred due to the non-payment for the goods sold on credit. There are two methods of its recording – Allowance method for bad debts and direct method for bad debts. Aging method of bad debts expense: In aging method of bad debts expense, the bad debts expense is calculated on the estimates based on the prior experience and the age of the accounts receivables overdue. Requirement 1 To prepare: Journal entries for all the transactions
Bad debts expense: The bad debts expense can be defined as the loss or the expense incurred due to the non-payment for the goods sold on credit. There are two methods of its recording – Allowance method for bad debts and direct method for bad debts. Aging method of bad debts expense: In aging method of bad debts expense, the bad debts expense is calculated on the estimates based on the prior experience and the age of the accounts receivables overdue. Requirement 1 To prepare: Journal entries for all the transactions
Definition Definition Act of publishing journal entries in their respective general ledger accounts to create a consolidated view of an account. At the end of the fiscal year, ledger accounts are balanced and account balances in every ledger are consolidated together to create the trial balance.
Chapter 9, Problem P9.35BPGB
To determine
Concept Introduction:
Bad debts expense:
The bad debts expense can be defined as the loss or the expense incurred due to the non-payment for the goods sold on credit. There are two methods of its recording – Allowance method for bad debts and direct method for bad debts.
Aging method of bad debts expense:
In aging method of bad debts expense, the bad debts expense is calculated on the estimates based on the prior experience and the age of the accounts receivables overdue.
Requirement 1
To prepare:
Journal entries for all the transactions
To determine
Requirement 2
1.To open:
Allowance for Bad debts T-accounts
2.To post:
Journal entries from requirement 1 to T-accounts
To determine
Requirement 3
To show:
How the net accounts receivables would be reported on December 31, 2016, balance sheet
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