Prepare appropriate bad debt expense adjusting journal entry

Reference no: EM131954983

Question: Casilda Company uses the aging approach to estimate bad debt expense. The ending balance of each account receivable is aged on the basis of three time periods as follows: (1) not yet due, $50,000, (2) up to 180 days past due, $15,800, and (3) more than 180 days past due, $4,300. Experience has shown that for each age group, the average loss rate on the amount of the receivables at year-end due to uncollectibility is (1) 3 percent, (2) 13 percent, and (3) 32 percent, respectively. At December 31, end of the current year, the Allowance for Doubtful Accounts balance is $400 (credit) before the end-of-period adjusting entry is made.

Required: 1. Prepare the appropriate bad debt expense adjusting journal entry for the current year. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)

2. Show how the various accounts related to accounts receivable should be shown on the December 31 current year, balance sheet. (Amounts to be deducted should be indicated by a minus sign.)

Reference no: EM131954983

Questions Cloud

Describe the common practice in the songs : Find and describe the following: 1) a common practice in the songs 2) Your sense of the range of diversity of music, lyrics, etc in that category.

What is the smallest value possible for d : A solution to a problem has n possible outcomes. An Algorithm to solve the problem uses a k-way decision tree of depth d.

Utilization of cash flow analysis-calculate bid price : Another utilization of cash flow analysis is setting the bid price on a project. To calculate the bid price,

Examine any five contributions that an entrepreneur is able : This is because an entrepreneur is an individual who is creative, dynamic and innovative.

Prepare appropriate bad debt expense adjusting journal entry : Prepare the appropriate bad debt expense adjusting journal entry for the current year. (If no entry is required for a transaction/event).

What is the percent change in multifactor productivity : What is the percent change in multifactor productivity compared to the current search process? (Keep two decimal places in your answer)

Financial obligation requires the payments : A financial obligation requires the payments of $1000 in 2 months, $3000 in 8 months, and $4000 in 14 months.

What details are required for that defense to be successful : If someone came up to you in a club and you both begin arguing and you are punched in the mouth resulting in the loss of a tooth.....which tort was committed?

Calculate the average rate of return for each year : Calculate the average rate of return for each year from the above information. What is the arithmetic average rate of return earned by investing in Caswell's.

User Account

All Pages