The allowance for doubtful accounts of Beta Care Limited had a credit balance of $1,500 on December
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Question:
The allowance for doubtful accounts of Beta Care Limited had a credit balance of $1,500 on December 31, 2019, before the current year's provision for uncollectible accounts. Based on historical data, the Accountant prepared the following schedule:
Period $ % Estimated Collectible
Current 200,000.00 99%
1-30 days 50,000.00 97%
31-60 days 20,000.00 94%
61-90 days 10,000.00 90%
Over 90 days 5,000.00 80%
Total Accounts Receivable 285,000.00
- Required:
1. Determine the total uncollectible Accounts Receivable as of December 31, 2019.
2. Journalize the entry on December 31, 2019 to recognize bad debt expense.
3. Assume that the Allowance for doubtful account had a $1,500 debit balance. Prepare the journal entry for the current year provision.
4. Assume that on December 31, 2019, a previously written off account of $900, was subsequently collected. Prepare the journal entry required to record the collection.
Related Book For
Fundamental Accounting Principles Volume 1
ISBN: 9781259259807
15th Canadian edition
Authors: Kermit Larson, Tilly Jensen, Heidi Dieckmann
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