The following summarizes the aging of accounts receivable for Johnston Supplies,

Question

The following summarizes the aging of accounts receivable for Johnston Supplies, Inc. as of July 31, 2016 unts Historical Number of Days Unpaid Not yet due 1-30 days past due 31-60 days past due Over 60 days past due Receivable $128,400 $91,100 $55,500 $33,700 Historical % Uncollectible 5% 10% 16% 35% Required a. The unadjusted balance of the Allowance for Doubtful Accounts of Johnston Supplies, Inc. is a credit balance in the amount of $29,517 on July 31, 2016. Prepare the required adjusting entry to record Bad Debt Expense for the year. (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field.) View transaction list Journal entry worksheet Record the adjusting entry to record bad debt expense for the year July 31, 2016 Note: Enter debits before credits Date General Journal Debit Credit July 31, 2016 Record entry Clear entry View general journal

Explanation / Answer

Estimated bad debts total Historical % estimated Number of days unpaid Account uncollectible bad receivable debts not yet due 128,400 5% 6420 1--30 days past due 91,100 10% 9110 31--60 days past due 55,500 16% 8880 over 60 days past due 33,700 33% 11121 total 35531 a. Date General Journal Debit Credit 7/31/2016 Bad debts expense 6014 Account receivable 6,014 (35,531-29517) b. 8/15/2016 allowance for uncollectible 3,271 Account receivable 3,271 c. T- Account Allowance for Doubtful accounts 8/15/2016 3,271 7/31/2016 29,517 7/31/2016 6,014 end bal 32,260

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