Box Ca. has a balance in the alowance for doubtful debts account of $8,020 Credit. Before the adjustment at the year ended 30 June 2022, no bad debts are expected to be recovered. Aged Schedals of accounts receivable at 30 Ame 2022 Accounts Receivable Not yet due $100.000 1 - 30 days overdue 220.000 31 - 90 days overdue 92.000 Over 90 day overdue 18,200 Estimated ¾ Uncodectable 209 10% 50% 10.  

Required: 

A Using the aging of accourts recenable method, calculate estimated bad debts from the above information. (3 marks) 

B. Prepare a general journal entry to adjust allowance for doubtful debts (ignore GST. (2 marks) 

C. On 6 August 2022, Felix Ltd, whose $6,000 account had been written off as uncollectable in Jay, paid its account in full Prepare journal entries to record the collection (2 marks) 

A basic difference between the direct write-off and the allowance method of recording bad debts is that of timing. Explain.

Answer rating: 100% (QA)

Box Co Bad Debts and Allowance for Doubtful Debts A Estimated Bad Debts using Aging Method 3 marks Calculate the estimated uncollectible amount for ea... View the full answer