Heathers Handbags' accounts receivable ledger provides the following aged trial balance at December 31, 2014: 0-30...

  

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Heathers Handbags' accounts receivable ledger provides the following aged trial balance at December 31, 2014: 0-30 days $ 1,500 + 90 days $ 250 Customer 31-60 days 61-90 days Total Anderson $ 1,750 Guest 790 $ 220 Logan Piquette Tembrall 1,010 3,250 22,000 975 500 2,750 12,000 975 8,600 $1,400 1,000 $16,265 Zaperniak 1,000 $29,985 $9,320 $1,400 $3,000 The related general ledger account balances are: Accounts receivable (control account) $ 29,085 Debit Allowance for doubtful accounts 900 Debit Heathers estimates that the estimated percentage of uncollectible accounts are as follows: accounts between 0 and 30 days, 1%; accounts between 31 and 60 days, 3%; accounts between 61 and 90 days, 5%; and accounts over 90 days old, 20%. Instructions Prepare the adjusting entry to record the current year's bad debt expense. Heathers Handbags' accounts receivable ledger provides the following aged trial balance at December 31, 2014: 0-30 days $ 1,500 + 90 days $ 250 Customer 31-60 days 61-90 days Total Anderson $ 1,750 Guest 790 $ 220 Logan Piquette Tembrall 1,010 3,250 22,000 975 500 2,750 12,000 975 8,600 $1,400 1,000 $16,265 Zaperniak 1,000 $29,985 $9,320 $1,400 $3,000 The related general ledger account balances are: Accounts receivable (control account) $ 29,085 Debit Allowance for doubtful accounts 900 Debit Heathers estimates that the estimated percentage of uncollectible accounts are as follows: accounts between 0 and 30 days, 1%; accounts between 31 and 60 days, 3%; accounts between 61 and 90 days, 5%; and accounts over 90 days old, 20%. Instructions Prepare the adjusting entry to record the current year's bad debt expense.

Answer rating: 100% (QA)

1 Calculation of Allowances for uncollectible accounts to be made Days Past due Amount unc... View the full answer