Chapter 6 Practice Problem with Solutions

# Chapter 6 Practice - Chapter 6 Practice Problem On December 1st Tahoe Thunder Inc.s accounts receivable has a balance of \$260,000 The net

This preview shows pages 1–2. Sign up to view the full content.

Accounts Receivable 1 - 30 days 31-60 days 61-90 days > 90 days \$230,000 \$160,000 \$35,000 \$14,000 \$21,000 % uncollectible estimate 0.2% 1.0% 5.0% 30.0% Chapter 6 Practice Problem On December 1 st , Tahoe Thunder Inc.’s accounts receivable has a balance of \$260,000. The net realizable value was \$251,900. Tahoe Thunder uses the aging method to estimate bad debt. On December 15 th , Tahoe Thunder wrote off a \$1,500 and a \$400 receivable from a customer that just filed bankruptcy. At the end of December, Tahoe Thunder aged their receivables and the results are below. Tahoe Thunder had \$400,000 of credit sales (they only sell on credit) during the period and historically 2% of credit sales have been uncollectible. Required Using the aging method Book a journal entry to write-off the customer’s receivables. Allowance for Doubtful Accounts \$1,900 Accounts Receivable \$1,900 Book a journal entry to record bad debt expense for the month of December. Bad Debt Expense

This preview has intentionally blurred sections. Sign up to view the full version.

View Full Document
This is the end of the preview. Sign up to access the rest of the document.

## This note was uploaded on 12/17/2010 for the course ACC 311 taught by Professor Charrier during the Fall '08 term at University of Texas at Austin.

### Page1 / 3

Chapter 6 Practice - Chapter 6 Practice Problem On December 1st Tahoe Thunder Inc.s accounts receivable has a balance of \$260,000 The net

This preview shows document pages 1 - 2. Sign up to view the full document.

View Full Document
Ask a homework question - tutors are online