Giaraldi Garden Products, Inc. developed an aged schedule of accounts receivable at the end of each year
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Giaraldi Garden Products, Inc. devel- E94. oped an aged schedule of accounts receivable at the end of each year Giaraldi Garden Products: Aged Schedule of Accounts Receivable Past Due Totals Current 1-30 Days 31-60 Days 61-90 Days Over 90 Days Customer $ 10.000 $ 34,500 2. 44,500 Carey Company 450,000 Gibson, Ltd. $423,000 $ 22000 33.000 $ 62000 1,500 101,600 KW Quarterly Onix Construction 100.000 45.000 90.500 235,500 500 512,500 387000 $810.000 Carpenter Lumber 125.000 Totals $185,000 $162000 $55.000 $127000 $1,344.000 The company estimated an allowance for uncollectible accounts based on the following estimates: Aging Category Allowance Provided Current 3% 1-30 days past due 6. 31-60 days past due 18 61-90 days past due 45 Over 90 days past due 100 Giaraldi reported net credit sales of S18,500,000 for the current year. We present the company's ending bal- ances of accounts receivable and the allowance for uncollectible accounts: Accounts Receivable Ending Balance 1,344,000 Allowance for Uncollectible Accounts 130,000 Unadjusted Ending Balance Required» a Compute the balance required in the allowance for uncollectible accounts at the end of the year. b. Prepare the journal entry to record the bad debt provision for the current year. c. Independent of your answer to part (b), prepare the journal entry to record the bad debt provision for the current year assuming that the allowance for uncollectible accounts had a $30,000 debit balance. E9-5. Bad Debt Expense, Write-Offs, Journal Entry. Answer the following questions using the information provided in E9-4. Required Prepare the journal entries required to record each of the following events. a. Giaraldi's credit management decided to write off all accounts that were more than 90 days past due. b. A vear after the write-offs recorded in part (a), assume that Onix Construction pays the entire bal- ance due. Giaraldi Garden Products, Inc. devel- E94. oped an aged schedule of accounts receivable at the end of each year Giaraldi Garden Products: Aged Schedule of Accounts Receivable Past Due Totals Current 1-30 Days 31-60 Days 61-90 Days Over 90 Days Customer $ 10.000 $ 34,500 2. 44,500 Carey Company 450,000 Gibson, Ltd. $423,000 $ 22000 33.000 $ 62000 1,500 101,600 KW Quarterly Onix Construction 100.000 45.000 90.500 235,500 500 512,500 387000 $810.000 Carpenter Lumber 125.000 Totals $185,000 $162000 $55.000 $127000 $1,344.000 The company estimated an allowance for uncollectible accounts based on the following estimates: Aging Category Allowance Provided Current 3% 1-30 days past due 6. 31-60 days past due 18 61-90 days past due 45 Over 90 days past due 100 Giaraldi reported net credit sales of S18,500,000 for the current year. We present the company's ending bal- ances of accounts receivable and the allowance for uncollectible accounts: Accounts Receivable Ending Balance 1,344,000 Allowance for Uncollectible Accounts 130,000 Unadjusted Ending Balance Required» a Compute the balance required in the allowance for uncollectible accounts at the end of the year. b. Prepare the journal entry to record the bad debt provision for the current year. c. Independent of your answer to part (b), prepare the journal entry to record the bad debt provision for the current year assuming that the allowance for uncollectible accounts had a $30,000 debit balance. E9-5. Bad Debt Expense, Write-Offs, Journal Entry. Answer the following questions using the information provided in E9-4. Required Prepare the journal entries required to record each of the following events. a. Giaraldi's credit management decided to write off all accounts that were more than 90 days past due. b. A vear after the write-offs recorded in part (a), assume that Onix Construction pays the entire bal- ance due.
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Related Book For
Intermediate Accounting
ISBN: 978-0132162302
1st edition
Authors: Elizabeth A. Gordon, Jana S. Raedy, Alexander J. Sannella
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