This Website Has Been Moved To A New Address

Loading

E9-6 Hecter Company estimates uncollectible accounts

Price: $2.99


Hecter Company estimates uncollectible accounts using the allowance method at December 31. It prepared the following aging of receivables analysis.

Accounts receivable . . . . . . . . . $190,000 Percent uncollectible . . . . . . . .
0
$132,000 1%
1 to 30
$30,000 2%
31 to 60
$12,000 4%
61 to 90
$6,000 7%
Over 90
$10,000 12%

a. Estimate the balance of the Allowance for Doubtful Accounts using the aging of accounts receivable method.
b. Prepare the adjusting entry to record Bad Debts Expense using the estimate from part a. Assume the unadjusted balance in the Allowance for Doubtful Accounts is a $600 credit.
c. Prepare the adjusting entry to record Bad Debts Expense using the estimate from part a. Assume the unadjusted balance in the Allowance for Doubtful Accounts is a $400 debit.

No comments:

Post a Comment