Question

The accounts receivable listing of Rogers Corporation shows the following on December 31, 2016. The general...

The accounts receivable listing of Rogers Corporation shows the following on December 31, 2016. The general ledger showed a $150 credit balance in Allowance for doubtful accounts before adjustment.

Name of customer           Invoice date               Amount

Diamonds Inc.               April 1, 2016               $550

Seeter Corporation           July 14, 2016               400

Summer Corporation           october 1, 2016           625

Gainer Inc.               December 12, 2016           175

Pebbles Inc.               August 5, 2016           480

Tinker Corporation           November 15, 2016           700

Hearts Inc.               November 18, 2016           225

Shiftell Inc.               September 2, 2016           765

Shiftell Inc.               July 6, 2016               860

Seeter Corporation           December 10, 2016           450

Required:      

1. Prepare an aging of accounts receivable at December 31, 2016.

2. Compute estimated loss based on the following:

       Age (days)                   Estimated Loss percentage

       1-30                       2%

       31-60                       3%

       61-90                       5%

       91-120                       10%

       121-150                   25%

       Over 150                   50%

3. Prepare journal entry to record the bad debt expense for the year.

Business   Accounting   
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Answer #1
a and b Aging method
1- 30 Days 625 2% 13
31 - 60 Days 925 3% 28
61- 90 days 0 5% 0
91-120 Days 1390 10% 139
121-150 Days 480 25% 120
Over 150 days 1810 50% 905
Total 5230 1204
Aloownace for doubt accounts 1204
Beginning balance 125
Bad debt expense 1079
Journal entry Debit Credit
Bad debt expense 1079
           Allowance for doubtful accounts 1079
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