On December 31, 2021, the Wynola Inc general ledger contained the following balances prior to adjustments:...
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On December 31, 2021, the Wynola Inc general ledger contained the following balances prior to adjustments: Accounts Receivable $616,300 Allowance for Doubtful Accounts $ 5,800 credit Net Credit Sales $1,529,000 Before completing an aging analysis to determine the estimated amount uncollectible, Wynola decided to write off $6,500 of an account past due over 360 days. Aging of the accounts receivable balance after the write off on December 31 indicated the following Age Amount Estimated percentage uncollectible Under 30 days $338,800 1.5% 30-90 days 156,000 3.0% 91-180 days 86,000 7.0 % 181- 360 days 24,000 20.0% Over 360 days 5,000 60.0 % S09,800 A. Prepare the necessary journal entry to record the write off of $6,500. B. Prepare the adjusting journal entry at December 31 to record Wynola Inc.'s estimated bad debts assuming that the company uses the Aging of accounts receivable method. C. What is the net realizable value of accounts receivable on the December 31, 2021 balance sheet? D. A customer, whose $3,000 accounts receivable had been written off, has paid the amount in full on Jan 10, 2022. Prepare the journal entry, or entries to record the recovery of the accounts receivable previously written off? On December 31, 2021, the Wynola Inc general ledger contained the following balances prior to adjustments: Accounts Receivable $616,300 Allowance for Doubtful Accounts $ 5,800 credit Net Credit Sales $1,529,000 Before completing an aging analysis to determine the estimated amount uncollectible, Wynola decided to write off $6,500 of an account past due over 360 days. Aging of the accounts receivable balance after the write off on December 31 indicated the following Age Amount Estimated percentage uncollectible Under 30 days $338,800 1.5% 30-90 days 156,000 3.0% 91-180 days 86,000 7.0 % 181- 360 days 24,000 20.0% Over 360 days 5,000 60.0 % S09,800 A. Prepare the necessary journal entry to record the write off of $6,500. B. Prepare the adjusting journal entry at December 31 to record Wynola Inc.'s estimated bad debts assuming that the company uses the Aging of accounts receivable method. C. What is the net realizable value of accounts receivable on the December 31, 2021 balance sheet? D. A customer, whose $3,000 accounts receivable had been written off, has paid the amount in full on Jan 10, 2022. Prepare the journal entry, or entries to record the recovery of the accounts receivable previously written off?
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A Date Account titles and explanation Debit Credit Dec31 Allowance for doubtful accounts 6500 Acc... View the full answer
Related Book For
Intermediate Accounting
ISBN: 978-1260481952
10th edition
Authors: J. David Spiceland, James Sepe , Mark Nelson, Wayne Thomas
Posted Date:
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