Ivanhoe Company uses the allowance method to estimate uncollectible a.docx - Ivanhoe Company uses the allowance method to estimate uncollectible

Ivanhoe Company uses the allowance method to estimate uncollectible a.docx

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Ivanhoe Company uses the allowance method to estimate uncollectible accounts receivable. The unadjusted balance in Allowance for Doubtful Accounts is a debit of $6,000. The company produced the following information from aging its accounts receivable at year end. Complete the aging schedule and calculate the total estimated uncollectible accounts. Total 0-30 91-120 $580,000 $350,000 296 $80,000 10% Number of Days Outstanding 31-60 61-90 $120,000 6% 7200 $ Accounts receivable Estimated % uncollectible Estimated uncollectible accounts $30,000 30% 0 $ 7000 8000 $ 9000 Record the bad debt adjusting entry using the information determined in part (a). (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry"for the account titles and enter for the amounts.) Account Titles and Explanation Debit Credit Bad Debt Expense Allowance for Doubtful Accounts (To record estimate of uncollectible accounts.) In the following year. $19,000 of the outstanding accounts receivable is determined to be uncollectible. Record the write off of the
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  • Fall '18
  • Perry Haan

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