The following is an aging schedule for a company's accounts receivable as at December 31, 2011: On

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The following is an aging schedule for a company's accounts receivable as at December 31, 2011:
The following is an aging schedule for a company's accounts

On December 31, 2011, the unadjusted balance in the allowance for doubtful accounts is a credit of $9,000.
Required:
a. Journalize the adjusting entry for bad debts on December 31, 2011.
b. Journalize the following selected events and transactions in 2012:
€¢ On March 1, an $800 customer account that originated in 2012 is judged uncollectible.
€¢ On September 1, an $800 cheque is received from the customer whose account was written off as uncollectible on March 1.
c. Journalize the adjusting entry for bad debts on December 31, 2012, assuming that the unadjusted balance in the allowance for doubtful accounts at that time is a debit of $1,000 and an aging schedule indicates that the estimated value of uncollectibles is $33,500.

Accounts Receivable
Accounts receivables are debts owed to your company, usually from sales on credit. Accounts receivable is business asset, the sum of the money owed to you by customers who haven’t paid.The standard procedure in business-to-business sales is that...
Aging Schedule
Aging schedule is an accounting table that shows a company’s account receivables. It is an summarized presentation of accounts receivable into a separate time brackets that the rank received based upon the days due or the days past due. Generally...
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Related Book For  book-img-for-question

Financial Accounting A User Perspective

ISBN: 978-0470676608

6th Canadian Edition

Authors: Robert E Hoskin, Maureen R Fizzell, Donald C Cherry

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