On January 31, 2012, the Accounts Receivable balance of Advanced Automotive Technology is $270,000. The Allowance for
Question:
On January 31, 2012, the Accounts Receivable balance of Advanced Automotive Technology is $270,000. The Allowance for Uncollectible Accounts has a $4,100 credit balance. Advanced Automotive Technology prepares the following aging schedule for its accounts receivable:
.png)
Requirements
1. Journalize the year-end adjusting entry for uncollectible accounts on the basis of the aging schedule. Calculate the resulting ending balance of the Allowance account based on the account aging. Show the T-account for the Allowance on January 31, 2012.
2. Assume that instead of a $4,100 credit balance, there is a $900 debit balance in the Allowance account prior to adjustment. Journalize the year-end adjusting entry for uncollectible accounts on the basis of the aging schedule. Calculate the resulting ending balance of the Allowance account based on the account aging.
Show the T-account for the Allowance on January 31,2012.
Aging schedule is an accounting table that shows a company’s account receivables. It is an summarized presentation of accounts receivable into a separate time brackets that the rank received based upon the days due or the days past due. Generally...
Step by Step Answer:
Req 1 Journal DATE ACCOUNTS AND EXPLANATIONS POST REF Dr Cr 2012 Jan 31 Bad debt expense 12980 4100 ...View the full answer
