The following information was taken from the accounts receivable records of Blue Spruce Corporation as at December
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Question:
The following information was taken from the accounts receivable records of Blue Spruce Corporation as at December 31, 2020:
Outstanding Balance | Percentage Estimated to be Uncollectible | |||
0 – 30 days outstanding | $158,600 | 0.5% | ||
31 – 60 days outstanding | 65,000 | 2.5% | ||
61 – 90 days outstanding | 41,000 | 4.0% | ||
91 – 120 days outstanding | 18,200 | 6.5% | ||
Over 120 days outstanding | 4,100 | 10.0% |
Prepare the year-end adjusting entry for bad debt expense, assuming allowance for doubtful accounts had a debit balance of $4,110 prior to the adjustment.
Account Titles and Explanation | Debit | Credit |
Related Book For
Fundamental financial accounting concepts
ISBN: 978-0078025365
8th edition
Authors: Thomas P. Edmonds, Frances M. Mcnair, Philip R. Olds, Edward
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