2223_S09_hwk_6_solution - HA 2223 Spring 2009 Homework 6...

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HA 2223 – Spring 2009 Homework 6 Solution E6–14. Req. 1 December 31, 2010-Adjusting entry: Bad debt expense (+E, –SE). ........................................ 22,350 Allowance for doubtful accounts (+XA, –A). ....... 22,350 To adjust for estimated bad debt expense for 2010 computed as follows: Aged accounts receivable Estimated percentage uncollectible Estimated amount uncollectible Not yet due $250,000 x 3.5% = $8,750 Up to 120 days past due 50,000 x 10% = 5,000 Over 120 days past due 30,000 x 30% = 9,000 Estimated balance in Allowance for Doubtful Accounts 22,750 Current balance in Allowance for Doubtful Accounts 400 Bad Debt Expense for the year $22,350 Req. 2 Balance sheet: Accounts receivable ($250,000 + $50,000 + $30,000) $330,000 Less allowance for doubtful accounts. ..................... 22,750 Accounts receivable, net of allowance for doubtful accounts. ......................................... $307,250 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…………. . $ 5,200 $5,200 D. Donalds………. . 8,000 $ 8,000 N. Napier…………. 7,000 $ 7,000 S. Strothers……… 22,500 2,000 20,500 T. Thomas………. .. 4,000 4,000 Totals…………… $46,700 $13,000 $28,500 $5,200 Percent…………. 100% 28% 61% 11%
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Req. 2
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2223_S09_hwk_6_solution - HA 2223 Spring 2009 Homework 6...

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