P8-4a - 18500 Allowance for doubtful accounts 18500 Of the...

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Wall Inc. uses the allowance method to estimate uncollectible accounts receivable. The company produced the following aging of the accounts receivable at year end. Number of Days Outstanding Total 0-30 31-60 61-90 91-120 Over 120 Accounts receivable $375,000 $220,000 $90,000 $40,000 $10,000 $15,000 % uncollectible 1% 4% 6% 8% 10%
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Calculate the total estimated bad debts based on the above information. $ 10500 Prepare the year-end adjusting journal entry to record the bad debts using the aged uncollectible accounts receivable determined in the question above. Assume the current balance in Allowance for Doubtful Accounts is a $8,000 debit. Account/Description Debit Credit Bad debts expense
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Unformatted text preview: 18500 Allowance for doubtful accounts 18500 Of the above accounts, $5,000 is determined to be specifically uncollectible. Prepare the journal entry to write off the uncollectible account. Account/Description Debit Credit Allowance for doubtful accounts 5000 Accounts receivable 5000 The company collects $5,000 subsequently on a specific account that had previously been determined to be uncollectible in the question above. Prepare the journal entry(ies) necessary to restore the account and record the cash collection. Account/Description Debit Credit Accounts receivable 5000 Allowance for doubtful accounts 5000 (To reinstate the account) Cash 5000 Accounts receivable 5000 (To record the collection)...
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P8-4a - 18500 Allowance for doubtful accounts 18500 Of the...

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