Bob's Auto Parts has provided you with the accounts receivable information below at year end on...
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Bob's Auto Parts has provided you with the accounts receivable information below at year end on December 31. The allowance for doubtful accounts ledger account Currently has a credit balance of $800. Age Smith Jones White Brown Green LeBlanc Pelletier Totals Estimated uncollectible Dollar amount 1-30 days 31-60 days 61-90 days Over 90 days Total 60,000 20,000 40,000 30,000 50,000 1% 10,000 2% 10,000 10% 10,000 50% 230,000 Required a. Complete the appropriate form to age the accounts receivable. Provide the necessary end-of-year journal entry using the aging of accounts receivable method. You need to fill in the "Dollar amount" row and provide the total. Provide the necessary end-of-year journal entry using the aging of accounts receivable method. b. Net credit sales are $5,000,000. Estimated bad debts are 0.2% of net credit sales. Provide the necessary end-of-year journal entry using the percentage of sales method. In the following year, on January 30, Bob wrote off the account of Pelletier. On March 18, Pelletier won the lottery and repaid us. Prepare the three journal entries. Leave a blank line separating each joural entry. c. Bob's Auto Parts has provided you with the accounts receivable information below at year end on December 31. The allowance for doubtful accounts ledger account Currently has a credit balance of $800. Age Smith Jones White Brown Green LeBlanc Pelletier Totals Estimated uncollectible Dollar amount 1-30 days 31-60 days 61-90 days Over 90 days Total 60,000 20,000 40,000 30,000 50,000 1% 10,000 2% 10,000 10% 10,000 50% 230,000 Required a. Complete the appropriate form to age the accounts receivable. Provide the necessary end-of-year journal entry using the aging of accounts receivable method. You need to fill in the "Dollar amount" row and provide the total. Provide the necessary end-of-year journal entry using the aging of accounts receivable method. b. Net credit sales are $5,000,000. Estimated bad debts are 0.2% of net credit sales. Provide the necessary end-of-year journal entry using the percentage of sales method. In the following year, on January 30, Bob wrote off the account of Pelletier. On March 18, Pelletier won the lottery and repaid us. Prepare the three journal entries. Leave a blank line separating each joural entry. c.
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From the information provided in the image we are to complete the aging of accounts receivable and calculate the estimated uncollectible amounts We wi... View the full answer
Related Book For
Fundamentals of Financial Accounting
ISBN: 978-0078025914
5th edition
Authors: Fred Phillips, Robert Libby, Patricia Libby
Posted Date:
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