On October 31, 2012, the Accounts Receivable balance of TM Manufacturing is $256,000. The Allowance for Uncollectible
Question:
On October 31, 2012, the Accounts Receivable balance of TM Manufacturing is $256,000. The Allowance for Uncollectible Accounts has a $3,900 credit balance. TM 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 October 31, 2012.
2. Assume that instead of a $3,900 credit balance, there is an $800 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 October 31, 2012.
Aging ScheduleAging 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 2012 Oct 31 Bad debt expense 10070 3900 ...View the full answer
