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Q2 Timber Company has given you the following information from its aging of accounts receivable.  Using  this information,...

Q2

Timber Company has given you the following information from its aging of accounts receivable.  Using  this information, determine the ending balance of the allowance for doubtful accounts and prepare the journal entry to record bad debt expense.

Current amount in the allowance for doubtful accounts is a $958 credit.

Current

$24,400

2% uncollectible

31-60 days

7,350

8% uncollectible

61-90 days

3,380

15% uncollectible

91 and up

1,220

30% uncollectible
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Homework Answers

Answer #1

Number of Days

Receivables

Past Due

Amount

% uncollectible

Uncollectible amount

Current

$24,400

2%

$488

31-60

$7,350

8%

$588

61-90

$3,380

15%

$507

Over 90

$1,220

30%

$366

Adjusted balance required of Allowance for Doubtful Account (A)

$1,949

Unadjusted balance in the Allowance account (B)

$958

Bad Debt expense for Year : (A - B)

$991

>the ending balance of the allowance for doubtful accounts = $ 1949 Credit

>adjusting entry

Accounts title

Debit

Credit

Bad Debt Expense

$991

   Allowance for Doubtful account

$991

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