Question

2) Mariah's "Vertical/Horizontal Up Down Sideways Company" had the following Information regarding the aging of their accounts receivables: Age Categories Amount % estimated uncollectible Not yet due $58000 2% Less than 30 days past due $35,000 4% 30 to 60 days past due $23,000 6% 81 to 120 days past due $12,000 9% Over 120 days $15,000 25% The allowance for doubtful accounts has a credit balance of $900 prior to this year's adjustment. a) Calculate the total amount of estimated bad debt b) Prepare the journal using the above information to record the bad debt expense for the year c) Prepare the journal entries for the following: 1) The company decides to write off a $750 account of a customer who has gone bankrupt 2) The company receives a $300 check from the customer that they wrote off in Part C d) Assume now that it is the end of the next year. The company at that time has a debit balance of $950 in the allowance for doubtful accounts. The aging of accounts receivables indicates that the total balance for the allowance account should be $14,200

          2)
Mariah's "Vertical/Horizontal Up Down Sideways Company" had the following
Information regarding the aging of their accounts receivables:
Age Categories
Amount
% estimated uncollectible
Not yet due
$58000
2%
Less than 30 days past due
$35,000
4%
30 to 60 days past due
$23,000
6%
81 to 120 days past due
$12,000
9%
Over 120 days
$15,000
25%
The allowance for doubtful accounts has a credit balance of $900 prior to this
year's adjustment.
a) Calculate the total amount of estimated bad debt
b) Prepare the journal using the above information to record the bad debt
expense for the year
c) Prepare the journal entries for the following:
1) The company decides to write off a $750 account of a customer who
has gone bankrupt
2) The company receives a $300 check from the customer that they
wrote off in Part C
d) Assume now that it is the end of the next year. The company at that time
has a debit balance of $950 in the allowance for doubtful accounts. The
aging of accounts receivables indicates that the total balance for the
allowance account should be $14,200

2)
Mariah's "Vertical/Horizontal Up Down Sideways Company" had the following
Information regarding the aging of their accounts receivables:
Age Categories
Amount
% estimated uncollectible
Not yet due
58000
2%
Less than 30 days past due35,000
4%
30 to 60 days past due
23,000
6%
81 to 120 days past due12,000
9%
Over 120 days
15,000
25%
The allowance for doubtful accounts has a credit balance of900 prior to this
year's adjustment.
a) Calculate the total amount of estimated bad debt
b) Prepare the journal using the above information to record the bad debt
expense for the year
c) Prepare the journal entries for the following:
1) The company decides to write off a 750 account of a customer who
has gone bankrupt
2) The company receives a300 check from the customer that they
wrote off in Part C
d) Assume now that it is the end of the next year. The company at that time
has a debit balance of 950 in the allowance for doubtful accounts. The
aging of accounts receivables indicates that the total balance for the
allowance account should be14,200

Added by Frederick L.

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