Malcolm Company uses the aging method of estimating bad debts as of December 31, the end of the fiscal year. Terms of sales are net 30 days. While preparing the aging schedule, the accountant became ill and was unable to finish the job. The accountant’s report, as he left it, is as follows:

The accountant still had to analyze the following accounts:

From past experience, the company has found that the following percentages for estimated uncollectible accounts produce an adequate balance for Allowance for Doubtful Accounts.

Prior to aging the accounts receivable, Allowance for Doubtful Accounts had a credit balance of $ 7,467.

1. Enter the Balance Forward balances and complete the aging schedule.
2. Complete the table for estimating the allowance for doubtful accounts.
3. Record the adjusting entry in general journalform.

  • CreatedOctober 21, 2014
  • Files Included
Post your question