hw6 - the more likely it will be bad debt. 8-8B GENERAL...

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Tim Zhao HW -6 BUAD 305 Total 0-30 31-60 61-90 91-120 over 120 AR $378,000 222000 90000 38000 10000 18000 % uncollectible 1% 4% 5% 6% 10% Estimated BD 10120 2220 3600 1900 600 1800 GENERAL JOURNAL Date Description Debit Credit 2007 Dec. 31 B. Bad Debt expense 14,120 Allowance for doubtful 14,120 C.31 allowance for doubtful 5,000 account recievable 5,000 D.31 account receivable 5,000 allowance for doubtful 5,000 31 cash 5,000 account receievable 5,000 E. If it was to use 3% instead of aging, it will overstate the bad debt, and understate the revenue and realizable cash. aging schedule makes more sense because the longer the account remain unpaid
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Unformatted text preview: the more likely it will be bad debt. 8-8B GENERAL JOURNAL A. Date Description Debit Credit 2007 account receievable 5600 oct.7 sales 5600 12 cash 582 service charge expense 18 sales 600 15 cash 8,628 note receivable 8,500 interest revenue 127.5 25 cash 6,070 note receivable 6,000 interest revenue 70 B. note recieveable account recieveable Oct 1. 24,700 Oct 1. 15 8500 7 5,600 25 6000 Bal. 5600 Bal. 10200 C. Haley company Balance sheet Oct. 31, 2007 Current assets Cash $582 account receivable $5,600 note receviable 10200 15868...
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