Question: On December 31 2013 the Accounts Receivable balance of Alterations

On December 31, 2013, the Accounts Receivable balance of Alterations Express is $300,000. The Allowance for Doubtful Accounts has a $3,900 credit balance. Alterations prepare the following aging schedule for its accounts receivable:
Requirements
1. Journalize the year-end adjusting entry for bad debts on the basis of the aging schedule. Calculate the resulting ending balance of the Allowance account based on the account aging. Show the T-account for the Allowance on December 31, 2013.
2. Assume that instead of a $3,900 credit balance, there is a $1,300 debit balance in the Allowance account prior to adjustment. Journalize the year-end adjusting entry for bad debts on the basis of the aging schedule. Calculate the resulting ending balance of the Allowance account based on the account aging. Show the T-account for the Allowance on December 31, 2013.



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  • CreatedJuly 08, 2015
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