Part 2 of 3 As the recently appointed controller of Lynbrook, you would like to

Question

Part 2 of 3
As the recently appointed controller of Lynbrook, you would like to begin using the aging method to determine the ending balance in the Allowance for Doubtful Accounts. Your accounting staff provided you with the following aging schedule for Lynbrook’s accounts receivable at December 31, 2019:
Accounts Receivable Amount Proportion Expected to Default

0-30 days 225,000$ 0.03

31-60 65,000 0.10

61-90 35,000 0.15

Over 91 days 10,000 0.45

335,000$
Required:
If the unadjusted balance in allowance for doubtful accounts was a debit of $2,500, prepare an answer the following questions:

1. Prepare the adjusting journal entry to record the bad debt expense.
2. Determine the Net Accounts Receivable (Net Realizable Value) amount that will be reported in the December 31, 2019 Balance Sheet.

Explanation / Answer

1.Adjusting entry

2.

0-30 days $ 225,000 3% $    6,750 31-60 days $    65,000 10% $    6,500 61-90 Days $    35,000 15% $    5,250 More than 90 days $    10,000 45% $    4,500 Estimated uncollectible account $ 23,000

Related Questions

Navigate

• Browse (All)
• Browse P
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.