During 2017 Lopez Inc. recorded bad debt expense based upon the percentage sales

Question

During 2017 Lopez Inc. recorded bad debt expense based upon the percentage sales method At the end of the year, Lopez recorded an adjusting entry for Bad debt expense that is based upon an aging schedule of the Account Receivables outstanding at theend of the year 2,654,000.00 Net credit sales during the year During the year a provision for bad debts was made at 2.00% percent of sales The balance sheet at the end of 2016 shows Gross accounts receivable = Allowance for doubtful accounts 442,000.00 38,000.00 Accounts Receivable activity during 2017: Beginning balance Net Credit sales Collections on credit sales Accounts receivable written off as uncollectible Ending balance 442,000.00 2,654,000.00 -2,590,000.00 72,000.00 434,000.00 This is the aging schedule for the year-end accounts receivable Age Group 0-60 days 61-90 days 91-120 days Over 120 davs Total Percentage expected Amount to be uncollectible 282,100 65100 50,200 36,600 434,000 3.00% 10.00% 15.00% 25.00% Required 1) Show the journal entry to record bad debt expense during the year based upon the percentage sales method 2) Show the journal entry to record the accounting receivable write-offs during the year. 3) Show the year-end adjusting entry for bad debt expense based upon the ageing schedule 4) What was the total bad debt expense for 2017'?

Explanation / Answer

Net credit sale for the year 2654000 Estimated uncollectible balance 2.00% Total amount 53080 1 Bad debt expense 53080             Allowance for doubtful accounts 53080 2 Allowance for dobtful accounts 72000             Accounts receivable 72000 3 Aging method 0 1- 60 Days 282100 3% 8463 61 - 90 Days 65100 10% 6510 91- 120 days 50200 15% 7530 over 120 Days 36600 25% 9150 Total 434000 31653 4 Ending allowance for doubtful accounts 31653 Add Accounts receivable written off 72000 103653 Less Beginning allowance for douvtful accounts 38000 Bad debt expense 65653

Related Questions

Navigate

• Browse (All)
• Browse D
• Subjects

---

---

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