Account Titles and Explanation Debit Credit Account Titles and Explanation Debit

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Account Titles and Explanation

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Account Titles and Explanation

Debit

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Account Titles and Explanation

Debit

Credit

(To reverse write off of account receivable.)

for part c complete answer as above yes or no and complete sentence : the bad debts expense would be $

please i awaiting for your answer

Problem 8-4A Pukalani Ltd. prepares an aging schedule for its accounts receivable at the end of each month and records bad debts expense monthly. The following selected information is from Pukalani’s partial aging schedule at the end of July: Number of Days
Outstanding Accounts Receivable Estimated Percentage
Uncollectible 0–30 days $727,000 2% 31–60 days 344,000 6% 61–90 days 106,000 13% Over 90 days 71,000 24% Total $1,248,000
The unadjusted balance in Allowance for Doubtful Accounts is a credit of $12,950.

Explanation / Answer

a Number of Days Outstanding Accounts Receivable Estimated Percentage Uncollectible Estimated Uncollectible Accounts 0–30 days 727000 2% 14540 31–60 days 344000 6% 20640 61–90 days 106000 13% 13780 Over 90 days 71000 24% 17040 Total 1248000 66000 b Bad debts expense 53050 =66000-12950          Allowance for Doubtful Accounts 53050 c Yes, the bad debts expense would be $ 78950 (66000+12950) d Allowance for Doubtful Accounts 45480        Accounts Receivable 45480 e Accounts Receivable 9730          Allowance for Doubtful Accounts 9730 Cash 9730         Accounts Receivable 9730

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