1 of 3 i More Info Dec. 28 Wrote off accounts receivable as uncollectible: Scarl

Question

1 of 3 i More Info Dec. 28 Wrote off accounts receivable as uncollectible: Scarlett Co., $1,400, Oscar Waters $800; and Pristine, Inc., $300. 31 Recorded bad debts expense based on the aging of accounts receivable, as follows: Age of Accounts 1-30 Days 31-60 Days 61-90 Days Over 90 Days $ 97,000S 42,000 S 18,000 s Accounts Receivable 5,000 Estimated percent uncollectible 0.3% 3% 30% 35% Print Done 1.Journalize the transactions 2. Open the Allowance for Bad Debts T-account, and post entries affecting that account. Keep a running balance Show how East Terrace Medical Center should report net accounts receivable on its December 31, 2016, balance sheet 3. Print Done g balance (Enter the September 30 balance and post the December 28 entry on the first line of the accou account)

Explanation / Answer

Requirement 1

December 28

Allowance for Bad Debt Account 2500

To Scarlett Co 1400

Oscar waters 800

Pristine Inc 300

( Since they are certain that they will not be recovered, so written off from Trade Recievable)

December 31

Total 8701

Profit and Loss Account dr 8701

To Allowance for Doubtful Debt 8701

(Since they are uncertain, so a provision is created)

Requirement 2

Requirement 3

Trade Recievables 162000

Less : Allowance for Doubtful Debt 9201 152799

97000 42000 18000 5000 0.3% 3% 30% 35% 291 1260 5400 1750   

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