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Columbia Business School | Accounting I: Financial Accounting (B6001)Solution to Homework Assignment 61
Columbia Business School | Accounting I: Financial Accounting (B6001)Solution to Question 1 (Accounts Receivable)a.According to table (c), bad debt expense for all receivables is S/9,717, but, as both table (a) and the text disclosure in (c) indicate, S/9,034 pertain to receivables in non-financial assets, so only the remaining S/683 should be included in the answer. The journal entry for bad debt expense (additions) is therefore:DR bad debt expense683CR allowance for doubtful accounts683There are no write-offs in non-financial receivables, so we can use the amounts from table (c)without further adjustments. The journal entry for write-offs is:DR allowance for doubtful accounts11CR accounts receivable11Only the bad debt expense of S/683 appears on the income statement.b.According to table (a), the allowance for doubtful accounts pertaining to receivables in finan-

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