p7-4 - at December 31, 2010 Aging Category Balance %...

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

View Full Document Right Arrow Icon
(a) FORTNER CORPORATION Analysis of Changes in the Allowance for Doubtful Accounts For the Year Ended December 31, 2010 Balance at January 1, 2010 $130,000 Provision for doubtful accounts ($9,000,000 X 2%) 180,000 Recovery in 2010 of bad debts written off previously 15,000 325,000 Deduct write-offs for 2010 ($90,000 + $60,000) 150,000 Balance at December 31, 2010 before change in accounting estimate 175,000 Increase due to change in accounting estimate during 2010 ($263,600 – $175,000) 88,600 Balance at December 31, 2010 adjusted (Schedule 1) $263,600
Background image of page 1

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

View Full DocumentRight Arrow Icon
Schedule 1 Computation of Allowance for Doubtful Accounts
Background image of page 2
This is the end of the preview. Sign up to access the rest of the document.

Unformatted text preview: at December 31, 2010 Aging Category Balance % Doubtful Accounts NovDec 2010 $1,080,000 2 $ 21,600 JulyOct 650,000 10 65,000 JanJun 420,000 25 105,000 Prior to 1/1/10 90,000(a) 80 72,000 $263,600 (a) $150,000 $60,000 (b) The journal entry to record this transaction is as follows: Bad Debt Expense. ........................................ $88,600 Allowance for Doubtful Accounts. ........... (To increase the allowance for doubtful accounts at December 31, 2010, resulting from a change in accounting estimate) $88,600...
View Full Document

This note was uploaded on 05/23/2011 for the course ACCOUTNING 550 taught by Professor Abner during the Spring '11 term at DeVry Houston.

Page1 / 2

p7-4 - at December 31, 2010 Aging Category Balance %...

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

View Full Document Right Arrow Icon
Ask a homework question - tutors are online