Bull Moose Company reported the balance in Allowance for Doubtful Accounts at $145,600 (Cr.) at January...
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Bull Moose Company reported the balance in Allowance for Doubtful Accounts at $145,600 (Cr.) at January 1, 2021. During 2021, credit sales totaled $5,250,000, $112,000 of bad debts were written off, and recoveries of accounts previously written off amounted to $9,750. The aging schedule for accounts receivable at December 31, 2021 is as follows: Estimated % Classification by Month of Sale Balance in each Category Uncollectible November-December 2021 $875,000 2% July-October 658,000 10% January-June 289,600 25% Prior to January 2021 136,500 80% $1,959,100 Based on the review of collectibility of the account balances in the "prior to January 2021" aging category, additional receivables totaling $103,000 were written off as of December 31, 2021. The 80% uncollectible estimate applies to the remaining amount in the category. Required: a. Determine the balance in the allowance for doubtful accounts prior to the year end adjusting entry to recognize bad debts expense. b. Prepare the journal entry to recognize bad debts expense as of 12/31/2021. Bull Moose Company reported the balance in Allowance for Doubtful Accounts at $145,600 (Cr.) at January 1, 2021. During 2021, credit sales totaled $5,250,000, $112,000 of bad debts were written off, and recoveries of accounts previously written off amounted to $9,750. The aging schedule for accounts receivable at December 31, 2021 is as follows: Estimated % Classification by Month of Sale Balance in each Category Uncollectible November-December 2021 $875,000 2% July-October 658,000 10% January-June 289,600 25% Prior to January 2021 136,500 80% $1,959,100 Based on the review of collectibility of the account balances in the "prior to January 2021" aging category, additional receivables totaling $103,000 were written off as of December 31, 2021. The 80% uncollectible estimate applies to the remaining amount in the category. Required: a. Determine the balance in the allowance for doubtful accounts prior to the year end adjusting entry to recognize bad debts expense. b. Prepare the journal entry to recognize bad debts expense as of 12/31/2021.
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a b Working notes Age of Accounts November December 2021 JulyOctober Ja... View the full answer
Related Book For
Intermediate Accounting IFRS
ISBN: 978-1119372936
3rd edition
Authors: Donald E. Kieso, Jerry J. Weygandt, Terry D. Warfield
Posted Date:
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