Try another version of these questions Using the data below, assume the allowance for doubtful accounts for Maria Enterprises has a credit balance of $14,850 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 $11,200 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 $31,500 and Allowance for Bad Debts had a credit balance of $3,100. 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. $3,500 $3,500 Account Co. $4,000 $4,000 ... ... ... ... ... ... ... ZZZ Corp. $4,600 $4,600 Subtotals $835,400 $500,200 $184,400 $80,800 $44,600 $25,400 Buffalo-B Inc. $12,400 $12,400 Doodle-Do Co. $8,100 $8,100 Le'Veon Corp. $16,100 $16,100 Vinny Industries $11,000 $11,000 We-Win Company $22,700 $22,700 TOTALS $905,700 $522,900 $195,400 $96,900 $52,700 $37,800
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 $905,700 $522,900 $195,400 $96,900 $52,700 $37,800 Percent Uncollectible 1 4 15 35 60 Allowance for Doubtful Accounts $68,705 $5,229 $7,816 $14,535 $18,445 $22,680 Date Description Debit Credit November 30 November 30 Date Description Debit Credit November 30 Bad Debt Expense 53,855 November 30 Allowance for Bad Debt 53,855
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 265,400 a Sales Revenue 265,400 b Cash 225,400 b A/R 225,400 c Allowance for Bad Debt 6,400 c A/R 6,400 d Bad Debt Expense 5,200 d Allowance for Bad Debt 5,200 Debit Credit 11,200 225,400 265,400 6,400 Double line44,800 Double line Debit Credit 6,400 2,300 5,200 Double line Double line1,100 Debit Credit 5,200 Double line5,200 Double line
Balance Sheet−Partial
December 31, 2020Description Amount Subcategory,Assets Subcategory,Current Assets: Accounts Receivable 44,800 Less: Allowance for Bad Debts -1,100Single line Single line43,700
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 155,800 a. Cash 16,700 a. Sales Revenue 172,500 b. Cash 132,000 b. A/R 132,000 c. Allowance for Bad Debt 2,600 c. A/R 2,600 Debit Credit 31,500 132,000 155,800 2,600 Double line52,700 Double line Debit Credit 2,600 3,100 Double line Double line500 Date Description Debit Credit d. Bad Debt Expense 1,608 d. Allowance for Bad Debt 1,608 Debit Credit 1,608 Double line1,608 Double line Debit Credit 2,600 3,100 1,608 Double line Double line2,108
Balance Sheet−Partial
December 31, 2020Description Amount Subcategory,Assets Subcategory,Current Assets: Accounts Receivable 52,700 Less: Allowance for Bad Debts -2,108Single line Single line50,592