Prepare the adjusting entry to record bad debts expense

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Reference no: EM132444066

Question 1:

Wright Company estimates uncollectible accounts using the allowance method at December 31. It prepared the following aging of receivables analysis.

Days Past Due
	Total	0	1-30	31-60	61-90	over 90
Accounts receivable	1,109,000	411,000	105000	515000	33,000	45000
Percent uncollectible		1%	2%	5%	7%	10%

a. Complete the below table to calculate the estimated balance of Allowance for Doubtful Accounts using the aging of accounts receivable method.

b. Prepare the adjusting entry to record Bad Debts Expense using the estimate from part a. Assume the unadjusted balance in the Allowance for Doubtful Accounts is a $5,100 credit.

c. Prepare the adjusting entry to record bad debts expense using the estimate from part a. Assume the unadjusted balance in the Allowance for Doubtful Accounts is a $1,600 debit.

Accounts Receivable	$	Percent Uncollectible (%)	%
Not due:		x		=
1 to 30:		x		=
31 to 60:		x		=
61 to 90:		x		=
Over 90:		x		=
Estimated balance of allowance for uncollectibles

Prepare the adjusting entry to record Bad Debts Expense using the estimate from part a. Assume the unadjusted balance in the Allowance for Doubtful Accounts is a $5,100 credit.

Prepare the adjusting entry to record bad debts expense using the estimate from part a. Assume the unadjusted balance in the Allowance for Doubtful Accounts is a $1,600 debit.

Attachment:- Receivable Aging Template.rar

Reference no: EM132444066

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