On December 31, 2013, the Accounts Receivable balance of Alterations Express is $300,000. The Allowance for Doubtful
Question:
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.
Accounts ReceivableAccounts receivables are debts owed to your company, usually from sales on credit. Accounts receivable is business asset, the sum of the money owed to you by customers who haven’t paid.The standard procedure in business-to-business sales is that... Aging Schedule
Aging schedule is an accounting table that shows a company’s account receivables. It is an summarized presentation of accounts receivable into a separate time brackets that the rank received based upon the days due or the days past due. Generally...
Step by Step Answer:
Req 1 Journal DATE ACCOUNTS AND EXPLANATIONS POST REF DR CR 2013 Dec 31 Uncolle...View the full answer
Financial Accounting
ISBN: 978-0132889711
1st Canadian Edition
Authors: Jeffrey Waybright, Liang Hsuan Chen, Rhonda Pyper
