Try another version of these questions Using the data below, assume the allowance for doubtful accounts for Maria Enterprises has a credit balance of $15,520 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 $10,500 and $2,100 (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 $31,200 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 5% 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. $2,900 $2,900 Account Co. $4,400 $4,400 ... ... ... ... ... ... ... ZZZ Corp. $5,500 $5,500 Subtotals $832,400 $503,900 $177,500 $80,300 $45,100 $25,600 Buffalo-B Inc. $11,800 $11,800 Doodle-Do Co. $7,900 $7,900 Le'Veon Corp. $17,500 $17,500 Vinny Industries $10,600 $10,600 We-Win Company $22,700 $22,700 TOTALS $902,900 $526,600 $188,100 $97,800 $53,000 $37,400
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 $902,900 $526,600 $188,100 $97,800 $53,000 $37,400 Percent Uncollectible 1 4 15 35 60 Allowance for Doubtful Accounts $68,450 $5,266 $7,524 $14,670 $18,550 $22,440 Date Description Debit Credit November 30 November 30 Date Description Debit Credit November 30 Bad Debt Expense 52,930 November 30 Allowance for Bad Debt 52,930
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 266,100 a Sales Revenue 266,100 b Cash 212,500 b A/R 212,500 c Allowance for Bad Debt 6,000 c A/R 6,000 d Bad Debt Expense 5,700 d Allowance for Bad Debt 5,700 Debit Credit 10,500 212,500 266,100 6,000 Double line58,100 Double line Debit Credit 6,000 2,100 5,700 Double line Double line1,800 Debit Credit 5,700 Double line5,700 Double line
Balance Sheet−Partial
December 31, 2020Description Amount Subcategory,Assets Subcategory,Current Assets: Accounts Receivable 58,100 Less: Allowance for Bad Debts -1,800Single line Single line56,300
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 158,000 a. Cash 16,600 a. Sales Revenue 174,600 b. Cash 130,200 b. A/R 130,200 c. Allowance for Bad Debt 2,200 c. A/R 2,200 Debit Credit 31,200 130,200 158,000 2,200 Double line56,800 Double line Debit Credit 2,200 3,900 Double line Double line1,700 Date Description Debit Credit d. Bad Debt Expense 1,140 d. Allowance for Bad Debt 1,140 Debit Credit 1,140 Double line1,140 Double line Debit Credit 2,200 3,900 1,140 Double line Double line2,840
Balance Sheet−Partial
December 31, 2020Description Amount Subcategory,Assets Subcategory,Current Assets: Accounts Receivable 56,800 Less: Allowance for Bad Debts -2,840Single line Single line53,960