Question: On July 31 2013 the Accounts Receivable balance of Questor

On July 31, 2013, the Accounts Receivable balance of Questor Application, Inc. is $320,000. The Allowance for Doubtful Accounts has a $6,400 credit balance. Questor prepares the following aging schedule for its accounts receivable:
Requirements
1. Journalize the year-end adjusting entry for uncollectible accounts 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 July 31, 2013.
2. Assume that instead of a $6,400 credit balance; there is a $500 debit balance in the Allowance account prior to adjustment. Journalize the year-end adjusting entry for uncollectible accounts 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 July 31, 2013.



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  • CreatedJuly 08, 2015
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