Part $2$ Ques $2$

Barney Co$.$

December $312023$

$\backslash$table$[[,,$December $312023,],[,,$Estimated Percent Considered,$\backslash$table$[[$Estimated Amount Needed$],[$in Allowance for Doubtful$]]],[$Not yet due,Amount,to be Bad Debts Expense,Accounts$],[0-60,$$$180,000,3\%,],[61-180,14,000,7\%,],[$Over $6$ months,$12,000,16\%,],[$Total$,9,000,37\%,],[,$$$215,000,,]]$

Requirements:

Compute the amount of expected bad debts at December $31,2023$

Prepare the December $31$ adjusting entry for Bad Debt Expense assuming a $$250$ credit balance in the Allowance for Doubtful Accounts.

$\frac{\text{D}\text{a}\text{t}\text{e}}{\text{D}\text{e}\text{c}31}\frac{\text{A}\text{c}\text{c}\text{o}\text{u}\text{n}\text{t}\text{s}}{\frac{\text{B}\text{a}\text{d}\text{D}\text{e}\text{b}\text{t}\text{e}\text{x}\text{p}\text{e}\text{n}\text{s}\text{e}}{\text{A}\text{l}\text{l}\text{o}\text{w}\text{a}\text{n}\text{c}\text{e}\text{f}\text{o}\text{r}\text{D}\text{o}\text{u}\text{b}\text{t}\text{f}\text{u}\text{l}\text{A}\text{c}\text{c}\text{o}\text{u}\text{n}\text{t}\text{s}}\text{D}\text{e}\text{b}\text{i}\text{t}}$

Allowance for Doubtful Accounts $250$

$250$

target

$3.$ How much of the accounts receivable is expected to be collectible at December $31,2023?$

$4.$ Show how accounts receivable will be shown on a partial balance sheet assuming Cash, $$26,000$; and Inventory, $$15,000.$

Assets

Current Assets

Cash

Accounts Receivable

Less: Allowance for Doubtful Accts

Inventory

Total Current Assets