Devers Company has the following balances in their accounts receivable account and allowance for doubtful accounts...
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Devers Company has the following balances in their accounts receivable account and allowance for doubtful accounts at the end of the period ending September 30, 2021. Accounts Receviable 505,000 Devers has a past history of uncollectible accounts as shown below: Percentage Accounts Receivable Age Class Uncollectible 1-30 days 0.50% 2.00% 7.00% 18.00% 60.00% $275,000 $100,000 $ 60,000 $ 50,000 $ 20,000 Allow for Doubtful Accts 3,000 31-60 days 61-90 days 91-120 days > 120 days Date Required 1. Estimate the amount that should be in the Allowance for Doubtful Accounts based on the aging of the accounts receivable schedule above Enter the amount here 2. Journalize the necessary entry to record the bad debt expense for September 30. Accounts and Explanations Debit Credit Devers Company has the following balances in their accounts receivable account and allowance for doubtful accounts at the end of the period ending September 30, 2021. Accounts Receviable 505,000 Devers has a past history of uncollectible accounts as shown below: Percentage Accounts Receivable Age Class Uncollectible 1-30 days 0.50% 2.00% 7.00% 18.00% 60.00% $275,000 $100,000 $ 60,000 $ 50,000 $ 20,000 Allow for Doubtful Accts 3,000 31-60 days 61-90 days 91-120 days > 120 days Date Required 1. Estimate the amount that should be in the Allowance for Doubtful Accounts based on the aging of the accounts receivable schedule above Enter the amount here 2. Journalize the necessary entry to record the bad debt expense for September 30. Accounts and Explanations Debit Credit
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Related Book For
Accounting Principles Volume 1
ISBN: 978-1119502425
8th Canadian Edition
Authors: Jerry J. Weygandt, Donald E. Kieso, Paul D. Kimmel, Barbara Trenholm, Valerie Warren, Lori Novak
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