What will the bad debt expense be the month

Assignment Help Financial Accounting

Reference no: EM13754355

You are the accountant for the I love Accounting company. You have to perform the month end procedures for the Accounts Receivable and Allowance for Doubtful Account.

Given data:

The beginning balance in Accounts Receivable was $12,000- Debit

The beginning balance in Allowance for Doubtful Accounts was $1,000- Credit

During the period $8,500 new credit sales were made. There were $9,700 in cash collections on charge accounts.

An account that was previously written off was collected, the amount was $500.

The companies policy for aged receivables is:

Current portion 0%

31 to 60 10%

61 to 90 40%

Over 90 80%

When you print the month end Accounts receivable aging it shows the following partial data:

Amounts 31 to 60 61 to 90 over 90

2500 900 606

Question 1- show the adjusting entry to show the receipt of the previously written off account?

Question 2- what will the Bad Debt Expense be the month?

Question 3- what is the new balance be in the allowance for Doubtful Accounts?

Question 4- what is the ending balance for Accounts Receivable?

Question 5- what will be the cash realizable value for Accounts Receivable?

Reference no: EM13754355

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