Question: hi, I cant seem to solve this problem, its from the book of Fundamental Accounting, please i need help to solve it, thank you:) Problem

hi, I cant seem to solve this problem, its from the book of Fundamental Accounting, please i need help to solve it, thank you:)
hi, I cant seem to solve this problem, its from the book
of Fundamental Accounting, please i need help to solve it, thank you:)

Problem 8-3B Aging accounts receivable LO2,3 eXcel CHECK FIGURE: 2. Bad Debt Expense = $43,860 On December 31, 2017, RCA Company's Allowance for Doubtful Accounts had an unadjusted debit balance of $7,800. The accountant for RCA has prepared a schedule of the December 31, 2017 accounts receivable by age and, on the basis of past experience, has estimated the percentage of the receivables in each age category that will become uncollectible. This information is summarized as follows: December 31, 2017 Age of Expected Percentage Accounts Receivable Accounts Receivable Uncollectible $620,000 Not due (under 30 days) 1.75% 355,600 1 to 30 days past due 2.5 91.000 31 to 60 days past due 8.5 11,500 61 to 90 days past due 7.600 Over 90 days past due Click here for a description of Tables Problem 8-3B. 35 Required 1. Calculate the amount that should appear in the December 31, 2017, balance sheet as the Allowance for Doubtful Accounts. 2. Prepare the journal entry to record bad debt expense for 2017 Analysis Component: On July 31, 2018, RCA concluded that a customer's $4,200 receivable (created in 2017) was uncollectible and that the account should be written off. What effect will this action have on RCA's 2018 profit? Explain your

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Accounting Questions!