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This question was created from Week 3 Problem Set-2.docx https://www.coursehero.com/file/33928210/Week-3-Problem-Set-2docx/

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The Allowance for Doubtful Accounts balance on 1/1/X8 is $ 528.00 for the Farrior Hotel. The
aged accounts receivables listing as of 12/31/x8 is as follows:
CURRENT
30 days
60 days
90 days
120
Adert
300
200
100
Bortz
200
250
Carl
300
Diker
500
200
Ebbert
300
300
Others
26,200
5,200
2,450
1,600
1,500
The estimated percentage of bad debts is as follows:
Current
2%
((300+500+26,200)*2%)= $540
30
4%
((300+200+5,200)*4%)= $ 228
60
10% ((250+300+2450)*10%)= $ 300
90
20% ((200+200+1600)*20%)= $ 400
120
40% ((100+300+1500)*40%)= $ 760
REQUIRED
a) Using the Allowance Method-Aged Accounts Receivable, calculate the balance of
the allowance for doubtful accounts as of 12/31/X8.
b) Prepare the appropriate journal entry.

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Answer a) Balance of the allowance for doubtful accounts as of... View the full answer

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