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Fundamentals of Financial Accounting 4th Edition by Fred Phillips,Robert Libby,Patricia Libby
Edition 4ISBN: 978-0078025372Fundamentals of Financial Accounting 4th Edition by Fred Phillips,Robert Libby,Patricia Libby
Edition 4ISBN: 978-0078025372 Exercise 7
Recording Bad Debt Expense Estimates and Write-Offs Using the Aging of Receivables Method
At the end of 2013, Blackhorse Productions, Inc., used the aging of accounts receivable method to estimate that its Allowance for Doubtful Accounts should be $19,750. The account had an unadjusted credit balance of $10,000 at December 31, 2013.
Required:
Prepare journal entries for each transaction.
a. The appropriate bad debt adjustment was recorded for the year 2013.
b. On January 31, 2014, an account receivable for $1,000 from March 2013 was determined to be uncollectible and was written off.
At the end of 2013, Blackhorse Productions, Inc., used the aging of accounts receivable method to estimate that its Allowance for Doubtful Accounts should be $19,750. The account had an unadjusted credit balance of $10,000 at December 31, 2013.
Required:
Prepare journal entries for each transaction.
a. The appropriate bad debt adjustment was recorded for the year 2013.
b. On January 31, 2014, an account receivable for $1,000 from March 2013 was determined to be uncollectible and was written off.
Explanation
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The calculation of bad debt ex...
Fundamentals of Financial Accounting 4th Edition by Fred Phillips,Robert Libby,Patricia Libby
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