.Harper Industries started its business in 2020, and its fiscal year ends on December 31. The...

 

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.Harper Industries started its business in 2020, and its fiscal year ends on December 31. The following table provides information regarding Harper Industries" "Accounts Receivables": Accounts Receivables Date Total Balance Age Not yet due 1-30 days 31-60 past due past due days Over 60 days past due Dec 31, 2020 $300,000 230,000 40,000 30,000 Dec 31, 2021 $400,000 300,000 50,000 40,000 10,000 Additional Information: All sales were on credit with terms 2/10, n/30. Harper Industries used the Aging Method to determine the amount of receivables that may not be collectible in the future, and it recorded bad debt expense only at fiscal year-end. After a thorough review of its trade receivables, Harper Industries determined that receivables totaling $5,000 were not collectible on May 5. 2021. A write-off was recorded on the same day. On Oct 10, 2021. Harper Industries recovered and recorded $1,000 from the receivables that were written off earlier. Required: 1. Prepare the journal entries to record the transactions on May 5, 2021 and October 10, 2021 respectively. 2. Calculate the amount of receivables that may not be collectible in the future using the aging schedule below, and prepare the journal entry to record bad debt expense on December 31, 2021. Show your calculations. (Hint: You may want to start your work from 2020). Estimated Uncollectible Rate Not yet Due........... 1-30 days past due.. 31-60 days past due. 1% 5% 10% 15% More than 60 days overdue... 3. Show (in proper form) how accounts receivables would be presented on Harper Industries' statement of financial position as at December 31, 2021. .Harper Industries started its business in 2020, and its fiscal year ends on December 31. The following table provides information regarding Harper Industries" "Accounts Receivables": Accounts Receivables Date Total Balance Age Not yet due 1-30 days 31-60 past due past due days Over 60 days past due Dec 31, 2020 $300,000 230,000 40,000 30,000 Dec 31, 2021 $400,000 300,000 50,000 40,000 10,000 Additional Information: All sales were on credit with terms 2/10, n/30. Harper Industries used the Aging Method to determine the amount of receivables that may not be collectible in the future, and it recorded bad debt expense only at fiscal year-end. After a thorough review of its trade receivables, Harper Industries determined that receivables totaling $5,000 were not collectible on May 5. 2021. A write-off was recorded on the same day. On Oct 10, 2021. Harper Industries recovered and recorded $1,000 from the receivables that were written off earlier. Required: 1. Prepare the journal entries to record the transactions on May 5, 2021 and October 10, 2021 respectively. 2. Calculate the amount of receivables that may not be collectible in the future using the aging schedule below, and prepare the journal entry to record bad debt expense on December 31, 2021. Show your calculations. (Hint: You may want to start your work from 2020). Estimated Uncollectible Rate Not yet Due........... 1-30 days past due.. 31-60 days past due. 1% 5% 10% 15% More than 60 days overdue... 3. Show (in proper form) how accounts receivables would be presented on Harper Industries' statement of financial position as at December 31, 2021.

Answer rating: 100% (QA)

Answer 1 Journal Entries May 5 2021 Bad Debt Expense 5000 Accounts Receivable 5000 October 10 2021 C... View the full answer