02G IM WP B-6 Allow for Bad Debts - Prn

02G IM WP B-6 Allow for Bad Debts - Prn - EXPECTED AGED...

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Apple Blossom Cologne Company B-6 Allowance for Bad Debts 1-22-04 12-31-03 JWP =========================================================================================================== Allowance Provision for for Bad Debts Bad Debts =========================================================================================================== Balance at 12-31-02 11,889 A 2003 write-offs 14,760 Y (2,871) 2003 provision 22,790 Z 22,790 Balance per client at 12-31-03 19,919 22,790 (TB-BS) (TB-IS) Adjusting journal entry: (AJE # 1) (B-1) (750) Adjusted balance 19,169 (4) N 22,790 Journal entry to adjust allowance account: (AJE #4) (13,580) (13,580) Balance per audit 5,589 9,210 Provision For Bad Debts Reasonableness Test:
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Unformatted text preview: EXPECTED AGED UNCOLL. EST AGE AMOUNT PERCENT UNCOLL. 1-30 187107 (1) 1.50% 2807 30-60 20570 (B-1) 10.00% 2057 60-90 1450 (2) 50.00% 725 Over 90 0 (3) 100.00% Balance per Analysis 5589 Adjusted Balance 19169 (4) N Difference 13580 A Agreed to prior year's working papers. Y All write-offs approved by credit manager. Z Provision appears reasonable and in line with prior years. N Allowance requires adjustment. Propose (AJE #4) to adjust: 106 Allowance for doubtful accounts 13580 833 Provision for bad debts 13580 (1) $188187 - $1080 = $187107 (B-1) (AJE #2) (2) $3198 - $1748 = $1450 (B-1) (AJE #3) (3) $750 - $750 = 0 (B-1) (AJE #1)...
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