Business, 14.11.2019 19:31 jdvazquez18p7a7vs

(a) determine the amount estimated to be uncollectible by completing the aging of receivables schedule. round calculations to the nearest dollar. est. uncollectible accounts age interval balance percentage amount not past due $550,000 2.50% 1—30 days past due 96,500 4.00% 31—60 days past due 43,750 9.50% 61—90 days past due 22,250 16.00% 91—180 days past due 5,600 31.00% 181—365 days past due 3,100 60.00% over 365 days past due 1,250 95.00% total $722,450(b) if the allowance for doubtful accounts has a credit balance of $9,700, record the adjusting entry for the bad debt expense for the year. (c) if the allowance for doubtful accounts has a debit balance of $9,700, record the adjusting entry for the bad debt expense for the year.

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(b) If the Allowance for Doubtful Accounts has a credit balance of $9,700, record the adjusting entry for the bad debt expense for the year.

Dr Bad Debt Expense$ 20,410

Cr Allowance for Uncollectible Accounts$ 20,410

(c) If the Allowance for Doubtful Accounts has a debit balance of $9,700, record the adjusting entry for the bad debt expense for the year.

Dr Bad Debt Expense$ 39,810

Cr Allowance for Uncollectible Accounts$ 39,810

Explanation:

$550,000 2,5% $13,750 Not Past Due

$96,500 4,0% $3,860 Past Due 1-30 days

$43,750 9,5% $4,156 Past Due 31-60 days

$22,250 16,0% $3,560 Past Due 61-90 days

$5,600 31,0% $1,736 Past Due 91-180 days

$3,100 60,0% $1,860 Past Due 181-365 days

$1,250 95,0% $1,188 Past Due Over 365 days

$722,450 $30,110

(b) If the Allowance for Doubtful Accounts has a credit balance of $9,700, record the adjusting entry for the bad debt expense for the year.

Dr Bad Debt Expense$ 20,410

Cr Allowance for Uncollectible Accounts$ 20,410

If the company applies the allowance method, it means that the account Allowance for Uncollectible Accounts must show as balance the % of estimated value.

Because the company already has a CREDIT balance ($9,700) in the Allowance for Doubtful Accounts it's necessary to register an entry that complement ($20,410) the existing value and reflect the value ($30,110) as % of account receivable.

record the adjusting entry for the bad debt expense for the year.

Dr Bad Debt Expense$ 39,810

Cr Allowance for Uncollectible Accounts$ 39,810

If the company applies the allowance method, it means that the account Allowance for Uncollectible Accounts must show as balance the % of estimated value.

Because the company already has a DEBIT balance ($9,700) in the Allowance for Doubtful Accounts it's necessary to register an entry that compensate ($39,810) the existing value and reflect the value ($30,110) as % of account receivable.

Answer from: Quest

you get one warning and if you do something to violate the guidelines of after that you get kicked off.

mark as

Answer from: Quest

Ibelieve that the answer is d. because that is the only option that is efficient.

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(a) determine the amount estimated to be uncollectible by completing the aging of receivables schedu...