Try another version of these questions Using the data below, assume the allowance for doubtful accounts for Maria Enterprises has a credit balance of $13,770 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 $11,700 and $2,300 (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 $31,000 and Allowance for Bad Debts had a credit balance of $3,700. 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. $4,300 $4,300 ... ... ... ... ... ... ... ZZZ Corp. $5,000 $5,000 Subtotals $827,700 $504,300 $172,800 $80,100 $45,200 $25,300 Buffalo-B Inc. $11,900 $11,900 Doodle-Do Co. $8,900 $8,900 Le'Veon Corp. $16,900 $16,900 Vinny Industries $9,200 $9,200 We-Win Company $23,000 $23,000 TOTALS $897,600 $527,300 $182,000 $97,000 $54,100 $37,200
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 $897,600 $527,300 $182,000 $97,000 $54,100 $37,200 Percent Uncollectible 1 4 15 35 60 Allowance for Doubtful Accounts $68,358 $5,273 $7,280 $14,550 $18,935 $22,320 Date Description Debit Credit November 30 November 30 Date Description Debit Credit November 30 Bad Debt Expense 54,588 November 30 Allowance for Bad Debt 54,588
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 264,500 a Sales Revenue 264,500 b Cash 229,600 b A/R 229,600 c Allowance for Bad Debt 6,400 c A/R 6,400 d Bad Debt Expense 5,100 d Allowance for Bad Debt 5,100 Debit Credit 11,700 229,600 264,500 6,400 Double line40,200 Double line Debit Credit 6,400 2,300 5,100 Double line Double line1,000 Debit Credit 5,100 Double line5,100 Double line
Balance Sheet−Partial
December 31, 2020Description Amount Subcategory,Assets Subcategory,Current Assets: Accounts Receivable 40,200 Less: Allowance for Bad Debts -1,000Single line Single line39,200
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 155,600 a. Cash 16,100 a. Sales Revenue 171,700 b. Cash 130,100 b. A/R 130,100 c. Allowance for Bad Debt 2,300 c. A/R 2,300 Debit Credit 31,000 130,100 155,600 2,300 Double line54,200 Double line Debit Credit 2,300 3,700 Double line Double line1,400 Date Description Debit Credit d. Bad Debt Expense 768 d. Allowance for Bad Debt 768 Debit Credit 768 Double line768 Double line Debit Credit 2,300 3,700 768 Double line Double line2,168
Balance Sheet−Partial
December 31, 2020Description Amount Subcategory,Assets Subcategory,Current Assets: Accounts Receivable 54,200 Less: Allowance for Bad Debts -2,168Single line Single line52,032