Try another version of these questions Using the data below, assume the allowance for doubtful accounts for Maria Enterprises has a credit balance of $14,190 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 $2,400 (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 $31,300 and Allowance for Bad Debts had a credit balance of $3,600. 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 3% 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. $3,200 $3,200 Account Co. $4,100 $4,100 ... ... ... ... ... ... ... ZZZ Corp. $4,500 $4,500 Subtotals $829,200 $502,200 $176,400 $80,500 $46,000 $24,100 Buffalo-B Inc. $12,100 $12,100 Doodle-Do Co. $8,400 $8,400 Le'Veon Corp. $16,900 $16,900 Vinny Industries $9,600 $9,600 We-Win Company $23,500 $23,500 TOTALS $899,700 $525,700 $186,000 $97,400 $54,400 $36,200
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 $899,700 $525,700 $186,000 $97,400 $54,400 $36,200 Percent Uncollectible 1 4 15 35 60 Allowance for Doubtful Accounts $68,067 $5,257 $7,440 $14,610 $19,040 $21,720 Date Description Debit Credit November 30 November 30 Date Description Debit Credit November 30 Bad Debt Expense 53,877 November 30 Allowance for Bad Debt 53,877
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 266,400 a Sales Revenue 266,400 b Cash 221,700 b A/R 221,700 c Allowance for Bad Debt 6,000 c A/R 6,000 d Bad Debt Expense 5,200 d Allowance for Bad Debt 5,200 Debit Credit 11,700 221,700 266,400 6,000 Double line50,400 Double line Debit Credit 6,000 2,400 5,200 Double line Double line1,600 Debit Credit 5,200 Double line5,200 Double line
Balance Sheet−Partial
December 31, 2020Description Amount Subcategory,Assets Subcategory,Current Assets: Accounts Receivable 50,400 Less: Allowance for Bad Debts -1,600Single line Single line48,800
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 155,300 a. Cash 16,000 a. Sales Revenue 171,300 b. Cash 131,000 b. A/R 131,000 c. Allowance for Bad Debt 2,000 c. A/R 2,000 Debit Credit 31,300 131,000 155,300 2,000 Double line53,600 Double line Debit Credit 2,000 3,600 Double line Double line1,600 Date Description Debit Credit d. Bad Debt Expense 8 d. Allowance for Bad Debt 8 Debit Credit 8 Double line8 Double line Debit Credit 2,000 3,600 8 Double line Double line1,608
Balance Sheet−Partial
December 31, 2020Description Amount Subcategory,Assets Subcategory,Current Assets: Accounts Receivable 53,600 Less: Allowance for Bad Debts -1,608Single line Single line51,992