Question

Problem 5-66B Aging Method Bad Debt Expense Carol Simon, the manager of Handy Plumbing, has provided the following aging schedule for Handy's accounts receivable: Accounts Proportion Expected Receivable Category Amount to Default 0-20 days $ 92,600 0.03 21-40 days 12,700 0.09 41-60 days 17,800 0.14 Over 60 days 2,100 0.30 $125,200 Carol indicates that the $125,200 of accounts receivable identified in the table does not include $9,400 of receivables that should be written off. Required: 1. Journalize the $9,400 write-off. 2. Determine the desired postadjustment balance in allowance for doubtful accounts. 3. If the balance in allowance for doubtful accounts before the $9,400 write-off was a debit of $550, compute bad debt expense. Prepare the adjusting entry to record bad debt expense.

          Problem 5-66B Aging Method Bad Debt Expense
Carol Simon, the manager of Handy Plumbing, has provided the following aging schedule for
Handy's accounts receivable:
Accounts
Proportion Expected
Receivable Category
Amount
to Default
0-20 days
$ 92,600
0.03
21-40 days
12,700
0.09
41-60 days
17,800
0.14
Over 60 days
2,100
0.30
$125,200
Carol indicates that the $125,200 of accounts receivable identified in the table does not include
$9,400 of receivables that should be written off.
Required:
1. Journalize the $9,400 write-off.
2. Determine the desired postadjustment balance in allowance for doubtful accounts.
3. If the balance in allowance for doubtful accounts before the $9,400 write-off was a debit
of $550, compute bad debt expense. Prepare the adjusting entry to record bad debt
expense.

Problem 5-66B Aging Method Bad Debt Expense
Carol Simon, the manager of Handy Plumbing, has provided the following aging schedule for
Handy's accounts receivable:
Accounts
Proportion Expected
Receivable Category
Amount
to Default
0-20 days
92,600
0.03
21-40 days
12,700
0.09
41-60 days
17,800
0.14
Over 60 days
2,100
0.30125,200
Carol indicates that the 125,200 of accounts receivable identified in the table does not include9,400 of receivables that should be written off.
Required:
1. Journalize the 9,400 write-off.
2. Determine the desired postadjustment balance in allowance for doubtful accounts.
3. If the balance in allowance for doubtful accounts before the9,400 write-off was a debit
of 550, compute bad debt expense. Prepare the adjusting entry to record bad debt
expense.

Added by Gregorio J.

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