Try another version of these questions Using the data below, assume the allowance for doubtful accounts for Maria Enterprises has a credit balance of $13,400 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 $10,800 and $2,200 (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 $3,800. 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. $3,300 $3,300 Account Co. $4,200 $4,200 ... ... ... ... ... ... ... ZZZ Corp. $4,800 $4,800 Subtotals $825,200 $493,500 $181,200 $79,900 $45,500 $25,100 Buffalo-B Inc. $12,000 $12,000 Doodle-Do Co. $8,400 $8,400 Le'Veon Corp. $16,500 $16,500 Vinny Industries $9,900 $9,900 We-Win Company $22,400 $22,400 TOTALS $894,400 $515,900 $191,100 $96,400 $53,900 $37,100
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 $894,400 $515,900 $191,100 $96,400 $53,900 $37,100 Percent Uncollectible 1 4 15 35 60 Allowance for Doubtful Accounts $68,388 $5,159 $7,644 $14,460 $18,865 $22,260 Date Description Debit Credit November 30 November 30 Date Description Debit Credit November 30 Bad Debt Expense 54,988 November 30 Allowance for Bad Debt 54,988
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 265,600 a Sales Revenue 265,600 b Cash 218,600 b A/R 218,600 c Allowance for Bad Debt 6,500 c A/R 6,500 d Bad Debt Expense 5,700 d Allowance for Bad Debt 5,700 Debit Credit 10,800 218,600 265,600 6,500 Double line51,300 Double line Debit Credit 6,500 2,200 5,700 Double line Double line1,400 Debit Credit 5,700 Double line5,700 Double line
Balance Sheet−Partial
December 31, 2020Description Amount Subcategory,Assets Subcategory,Current Assets: Accounts Receivable 51,300 Less: Allowance for Bad Debts -1,400Single line Single line49,900
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 154,100 a. Cash 18,000 a. Sales Revenue 172,100 b. Cash 130,700 b. A/R 130,700 c. Allowance for Bad Debt 2,300 c. A/R 2,300 Debit Credit 30,900 130,700 154,100 2,300 Double line52,000 Double line Debit Credit 2,300 3,800 Double line Double line1,500 Date Description Debit Credit d. Bad Debt Expense 580 d. Allowance for Bad Debt 580 Debit Credit 580 Double line580 Double line Debit Credit 2,300 3,800 580 Double line Double line2,080
Balance Sheet−Partial
December 31, 2020Description Amount Subcategory,Assets Subcategory,Current Assets: Accounts Receivable 52,000 Less: Allowance for Bad Debts -2,080Single line Single line49,920