Vision Consulting Inc. had credit sales of $2,300,000 in 2014. At year End, December 31, 2014...

  

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Vision Consulting Inc. had credit sales of $2,300,000 in 2014. At year End, December 31, 2014 the company's Allowance for Doubtful Accounts had an unadjusted credit balance of $16,000. The accountant for Vision Consulting Inc. has prepared a schedule of the December 31, 2014 accounts receivable by age and, on the basis of past experience, has estimated the percentage of the receivables in each age category that will become uncollectible. This information is summarized as follows: December 31, 2014 Accounts Receivable $ 736,000 422,000 88,000 28,000 6,000 Age of Accounts Receivable Not due (under 30 days) 1 to 30 days past due 31 to 60 days past due 61 to 90 days past due Over 90 days past due Date a) Compute the amount that should appear in the December 31, 2014 balance sheet as the allowance for doubtful accounts. Allowance for doubtful accounts = $ Estimated Percentage Uncollectible b) Prepare the journal entry to record bad debt expense for 2014. General Journal Account/Explanation Page GJ1 Credit To record bad debt expense 1.40 % 2.10 7 32.25 69 F Debit Vision Consulting Inc. had credit sales of $2,300,000 in 2014. At year End, December 31, 2014 the company's Allowance for Doubtful Accounts had an unadjusted credit balance of $16,000. The accountant for Vision Consulting Inc. has prepared a schedule of the December 31, 2014 accounts receivable by age and, on the basis of past experience, has estimated the percentage of the receivables in each age category that will become uncollectible. This information is summarized as follows: December 31, 2014 Accounts Receivable $ 736,000 422,000 88,000 28,000 6,000 Age of Accounts Receivable Not due (under 30 days) 1 to 30 days past due 31 to 60 days past due 61 to 90 days past due Over 90 days past due Date a) Compute the amount that should appear in the December 31, 2014 balance sheet as the allowance for doubtful accounts. Allowance for doubtful accounts = $ Estimated Percentage Uncollectible b) Prepare the journal entry to record bad debt expense for 2014. General Journal Account/Explanation Page GJ1 Credit To record bad debt expense 1.40 % 2.10 7 32.25 69 F Debit

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Age of Accs receivable Not due 1 to 30 days 31 to 60 days 61 to 9... View the full answer