223_Hwk_6_Solutions - HA 223 Fall 2006 Homework 6 Solution...

Info iconThis preview shows pages 1–3. Sign up to view the full content.

View Full Document Right Arrow Icon
HA 223 – Fall 2006 – Homework 6 – Solution E6–14. Req. 1 December 31, 2008-Adjusting entry: Bad debt expense (+E, –SE). ........................................ 14,100 Allowance for doubtful accounts (+XA, –A). ....... 14,100 To adjust for estimated bad debt expense for 2008 computed as follows: Aged accounts receivable Estimated percentage uncollectible Estimated amount uncollectible Not yet due $300,000 x .5% = $1,500 Up to 120 days past due 50,000 x 10% = 5,000 Over 120 days past due 26,000 x 30% = 7,800 Estimated balance in Allowance for Doubtful Accounts $14,300 Current balance in Allowance for Doubtful Accounts 200 Bad Debt Expense for the year $14,100 Req. 2 Balance sheet: Accounts receivable ($300,000 + $50,000 + $26,000) $376,000 Less allowance for doubtful accounts. ..................... 14,300 Accounts receivable, net of allowance for doubtful accounts. ......................................... $361,700 P6–5. Req. 1 Aging Analysis of Accounts Receivable Customer Total Receivables (a) Not Yet Due (b) Up to One Year Past Due (c) More Than One Year Past Due B. Brown…………. . $ 5,000 $5,000 D. Donalds………. . 4,000 $ 4,000 N. Napier…………. 7,000 $ 7,000 S. Strothers……… 19,000 3,000 16,000 T. Thomas………. .. 7,000 7,000 Totals…………… $42,000 $17,000 $20,000 $5,000 Percent…………. 100% 40% 48% 12%
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Req. 2 Aging Schedule--Estimated Amounts Uncollectible Age Amount of Receivables Estimated Uncollectible Percentage Estimated Amount Uncollectible a. Not yet due…………………… $17,000 1% $ 170 b. Up to one year past due……. 20,000
Background image of page 2
Image of page 3
This is the end of the preview. Sign up to access the rest of the document.

Page1 / 5

223_Hwk_6_Solutions - HA 223 Fall 2006 Homework 6 Solution...

This preview shows document pages 1 - 3. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online