Try another version of these questions Using the data below, assume the allowance for doubtful accounts for Maria Enterprises has a credit balance of $15,730 before adjustments on November 30. Journalize the adjusting entry for uncollectible accounts as of November 30. The Accounts Receivable balance and Allowance for Bad Debts for Turning Leaves Furniture at December 31, 2019, was $11,300 and $2,400 (credit balance). During 2020, Turning Leaves Furniture completed the following transactions: Journalize Turning Leaves Furniture transactions for 2020 assuming Turning Leaves Furniture uses the allowance method. Post the transactions to the Accounts Receivable, Allowance for Bad Debts, and Bad Debts Expense T accounts, and determine the ending balance of each account. Show how accounts receivable would be reported on the balance sheet at December 31, 2020. At January 1, 2020, Hilly Mountain Flagpoles had Account Receivable of $30,900 and Allowance for Bad Debts had a credit balance of $3,900. During the year, Hilly Mountain Flagpoles recorded the following: Journalize Hilly Mountain Flagpoles transactions that occurred during 2020. The company uses the allowance method. Post the transactions to the Accounts Receivable and Allowance for Bad Debts T accounts. d. Journalize Hilly Mountain Flagpoles adjustment to record bad debts expense assuming Hilly Mountain Flagpoles estimates bad debts as 4% of accounts receivable. Post the adjustment to the appropriate T accounts. Show how Hilly Mountain Flagpoles will report net accounts receivable on its December 31, 2020, Balance Sheet. Days Past Due Customer Balance Not Past Due 1-30 31-60 61-90 Over 90 Abbott Inc. $2,600 $2,600 Account Co. $4,400 $4,400 ... ... ... ... ... ... ... ZZZ Corp. $4,800 $4,800 Subtotals $834,300 $509,800 $175,100 $80,700 $44,500 $24,200 Buffalo-B Inc. $11,600 $11,600 Doodle-Do Co. $7,900 $7,900 Le'Veon Corp. $17,100 $17,100 Vinny Industries $9,400 $9,400 We-Win Company $23,000 $23,000 TOTALS $903,300 $532,800 $184,500 $97,800 $52,400 $35,800
Age Class
% Uncollectible
Not past due
1%
1 – 30 days past due
4%
31 – 60 days past due
15%
61 – 90 days past due
35%
Over 90 days past due
60%
Days Past Due Customer Balance Not Past Due 1-30 31-60 61-90 Over 90 Total receivables $903,300 $532,800 $184,500 $97,800 $52,400 $35,800 Percent Uncollectible 1 4 15 35 60 Allowance for Doubtful Accounts $67,198 $5,328 $7,380 $14,670 $18,340 $21,480 Date Description Debit Credit November 30 November 30 Date Description Debit Credit November 30 Bad Debt Expense 51,468 November 30 Allowance for Bad Debt 51,468
Date Description Debit Credit a a b b c c d d Debit Credit Double line Double line Debit Credit Double line Double line Debit Credit Double line Double line
Balance Sheet−Partial
December 31, 2020Description Amount Subcategory,Assets Subcategory,Current Assets: Single line Single line Date Description Debit Credit a A/R 266,300 a Sales Revenue 266,300 b Cash 222,400 b A/R 222,400 c Allowance for Bad Debt 5,700 c A/R 5,700 d Bad Debt Expense 5,500 d Allowance for Bad Debt 5,500 Debit Credit 11,300 222,400 266,300 5,700 Double line49,500 Double line Debit Credit 5,700 2,400 5,500 Double line Double line2,200 Debit Credit 5,500 Double line5,500 Double line
Balance Sheet−Partial
December 31, 2020Description Amount Subcategory,Assets Subcategory,Current Assets: Accounts Receivable 49,500 Less: Allowance for Bad Debts -2,200Single line Single line47,300
Date Description Debit Credit a. a. a. b. b. c. c. Debit Credit Double line Double line Debit Credit Double line Double line Date Description Debit Credit d. d. Debit Credit Double line Double line Debit Credit Double line Double line
Balance Sheet−Partial
December 31, 2020Description Amount Subcategory,Assets Subcategory,Current Assets: Single line Single line Date Description Debit Credit a. A/R 158,500 a. Cash 17,700 a. Sales Revenue 176,200 b. Cash 130,000 b. A/R 130,000 c. Allowance for Bad Debt 1,800 c. A/R 1,800 Debit Credit 30,900 130,000 158,500 1,800 Double line57,600 Double line Debit Credit 1,800 3,900 Double line Double line2,100 Date Description Debit Credit d. Bad Debt Expense 204 d. Allowance for Bad Debt 204 Debit Credit 204 Double line204 Double line Debit Credit 1,800 3,900 204 Double line Double line2,304
Balance Sheet−Partial
December 31, 2020Description Amount Subcategory,Assets Subcategory,Current Assets: Accounts Receivable 57,600 Less: Allowance for Bad Debts -2,304Single line Single line55,296