problem 7-4 - Student Name: Class: Problem 07-01 SWATHMORE...

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Student Name: Class: Problem 07-01 SWATHMORE CLOTHING CORPORATION General Journal Account Debit Credit Requirement 1: Monthly bad debt expense accrual summary. Bad Debt Expense Allowance for uncollectible accounts To record year 2009 accounts receivable write-offs. Allowance for uncollectible accounts Accounts receivable Requirement 2: Account Debit Credit Bad debt expense Allowance for uncollectible accounts Summary Percent Estimated Age Group Amount Uncollectible Allowance 0-60 days 4% 61-90 days 15% 91-120 days 25% Over 120 days 40% Totals Allowance for uncollectible accounts analysis: Beginning balance Add: Monthly bad debt accruals Deduct: Write-offs Balance before adjustments Required allowance Required year-end increase in allowance Requirement 3: Bad debt expense for 2009: Monthly accruals Year-end adjustment Total SWATHMORE CLOTHING CORPORATION Balance Sheet Current Assets: Accounts Receivable, net of allowance for uncollectible accounts
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Given Data P07-01: SWATHMORE CLOTHING CORPORATION Accounts Receivable, 12/31/08 $574,000 Allowance for uncollectibles, 12/31/08 $54,000 Credit sales, year 2009 $2,620,000 Collections, year 2009 ($2,483,000) Write-offs, year 2009 ($68,000) Ending A/R balance at 12/31/09 $643,000 A/R aging at 12/31/2009: Percentage Age Group Amount Uncollectible 0-60 days $430,000 4% 61-91 days 98,000 15% 91-120 days 60,000 25% Over 120 days 55,000 40% Total $643,000 Bad debt estimate (percentage of 3% credit sales)
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Student Name: Class: Problem 07-04 RAINTREE COSMETIC COMPANY General Journal Account Debit Credit Requirement 1: To record accounts receivable written off during the year 2009: Allowance for uncollectible accounts 35,000 Accounts receivable
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This note was uploaded on 02/24/2010 for the course ACCT 302 taught by Professor Staff during the Spring '08 term at Old Dominion.

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problem 7-4 - Student Name: Class: Problem 07-01 SWATHMORE...

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