Bad Debt Expense: Aging Method Glencoe Supply had the following accounts receivable aging schedule at the end
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Bad Debt Expense: Aging Method Glencoe Supply had the following accounts receivable aging schedule at the end of a recent year.
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Accounts Receivable Age Current 1-30 days past due 31-45 days past due 46-90 days past due 91-135 days past due Over 135 days past due Required: Amount $310,500 47,500 25,000 12,800 6,100 4,200 1. Determine bad debt expense. Proportion Expected to Default 0.005 0.01 0.13 0.20 0.25 0.60 The balance in Glencoe allowance for doubtful accounts at the beginning of the year was $47,600 (credit). During the year, accounts in the total amount of $51,232 were written off. Allowance Required $1,553 475 3,250 2,560 1,525 2,520 $11,883 2. Prepare the journal entry to record bad debt expense. If an amount box does not require an entry, leave it blank. Bad Debt Expense 38 Allowance for Doubtful Accounts (Record adjusting entry for bad debt expense estimate) 3. If Glencoe had written off $92,000 of receivables as uncollectible during the year, how much would bad debt expense reported on the income statement have changed? Accounts Receivable Age Current 1-30 days past due 31-45 days past due 46-90 days past due 91-135 days past due Over 135 days past due Required: Amount $310,500 47,500 25,000 12,800 6,100 4,200 1. Determine bad debt expense. Proportion Expected to Default 0.005 0.01 0.13 0.20 0.25 0.60 The balance in Glencoe allowance for doubtful accounts at the beginning of the year was $47,600 (credit). During the year, accounts in the total amount of $51,232 were written off. Allowance Required $1,553 475 3,250 2,560 1,525 2,520 $11,883 2. Prepare the journal entry to record bad debt expense. If an amount box does not require an entry, leave it blank. Bad Debt Expense 38 Allowance for Doubtful Accounts (Record adjusting entry for bad debt expense estimate) 3. If Glencoe had written off $92,000 of receivables as uncollectible during the year, how much would bad debt expense reported on the income statement have changed?
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Answer rating: 100% (QA)
Balance in allowance for doubtful accounts after write off 62400 58620 3780 ... View the full answer
Related Book For
Intermediate Accounting
ISBN: 978-0132162302
1st edition
Authors: Elizabeth A. Gordon, Jana S. Raedy, Alexander J. Sannella
Posted Date:
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