Kingston Corporation had a debit balance of $2,500 in the allowance for doubtful accounts at December 31.
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Question:
Kingston Corporation had a debit balance of $2,500 in the allowance for doubtful accounts at December 31. Calculate the bad debt expense estimate for the current year using the aging of accounts receivable data given below as of Dec 31. Also write the journal entry if the company decides to write off $3,100 of the accounts that were over 90 days old.
Account Classification | Amount | Estimated % Uncollectible | Amount |
1-30 days | $310,000 | 1.50% | |
31-60 days | 140,000 | 3% | |
61-90 days | 65,000 | 5% | |
Over 90 days | 23,000 | 15% |
Related Book For
College Accounting A Practical Approach
ISBN: 978-0132564441
11th Canadian Edition
Authors: Jeffrey Slater, Brian Zwicker
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