Addy Weddings uses the balance sheet approach to estimate uncollectible receivables. The aging of receivables on December
Question:
Addy Weddings uses the balance sheet approach to estimate uncollectible receivables. The aging of receivables on December 31, 2021 is shown in part a). Required a) Calculate the required allowance for doubtful accounts. Do not enter dollar signs or commas in the input boxes. Round all answers to the nearest whole number. Aging Category Bad Debt % Balance Required Allowance Under 30 days 2.0% $204,000 $Answer 31 - 60 days 5.0% $48,000 $Answer 61 - 90 days 20.0% $16,000 $Answer More than 90 days 70.0% $3,000 $Answer Total $271,000 $Answer b) Prepare the journal entry on December 31, 2021 to record bad debt expense, assuming the allowance account has a $2,100 credit balance. Date Account Title and Explanation Debit Credit Dec 31 Answer Answer Answer Answer To record estimated bad debt for the year c) Prepare the journal entry on December 31, 2021 to record bad debt expense, assuming instead that the allowance account has a $23,000 credit balance. Date Account Title and Explanation Debit Credit Dec 31 Answer Answer Answer Answer To record estimated bad debt for the year d) Prepare the journal entry on December 31, 2021 to record bad debt expense, now assuming the allowance account has a $1,200 debit balance.
Fraud examination
ISBN: 978-0538470841
4th edition
Authors: Steve Albrecht, Chad Albrecht, Conan Albrecht, Mark zimbelma