The J.T. Traverse Company is well known for its Traverse pens The company recent

Question

The J.T. Traverse Company is well known for its Traverse pens The company recently reported the following amounts in its unadjusted trial balance as of December 31 Debits 31,691000 Credts Allowance for Doubtul Accounts Sales Revenue $ 954,000 159,312.000 Required 1.42 Prepare the adjusting journal entry required at December 31 for recording Bad Debt Expense. (If no entry is required for a transaction/event, select No Journal Entry Required" in the first account field.) ) Assume Traverse uses 1/2 of 1 percent of sales to estimate its bad debt expense for the year TIP: Th Bad Debt Expense e percentage of credi it sales method directly calculates (ii) Assume instead that Traverse uses the aging of accounts receivable method and estimates that $1,011,000 of Accounts Receivable will be uncollectible TIP: The aging of accounts receivable method focuses on calculating what the adjusted Allowance for Doubtful Accounts balance should be. You need to consider the existing balance when determining the adjustment. Journal entry worksheet Record the entry for bad debt expenses under the percentage of credit sales method. Note: Enter debits before 2/31

Explanation / Answer

Solution 1:

Solution 2:

Solution 3:

Solution 4:

Note: As multiple questions are posted i have answered first question with all parts as per chegg policy, kindly post separate question for answer of remaining questions.

Journal Entries - Traverse Company Event Date Particulars Debit Credit a 31-Dec Bad debts expense Dr ($159,312,000*1%*1/2) $796,560.00         To Allowance for doubtful accounts $796,560.00 (To record bad debts expense)

Related Questions

Navigate

• Browse (All)
• Browse T
• Subjects

---

---

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