Question

In: Accounting

A summary of Klugman Company's December 31, 2021, accounts receivable aging schedule is presented below along wit...

A summary of Klugman Company's December 31, 2021, accounts receivable aging schedule is presented below along with the estimated percent uncollectible for each age group:

Age GroupAmount%
0-60 days$58,0000.5
61-90 days21,0001.0
91-120 days2,88010.0
Over 12 theta days1,00050.0

The allowance for uncollectible accounts had a balance of $1,380 on January 1, 2021. During the year, bad debts of $730 were written off. 


Required: 

Prepare all journal entries for 2021 with respect to bad debts and the allowance for uncollectible accounts. (If no entry is required for a transaction/event, select "No journal entry required in the first account field.)


A summary of Klugman Companys December 31, 2021, accounts receivable aging schedule is presented below along with the estima

Record the entry to write-off specific accounts. Note: Enter debits before credits. Transaction General Journal Debit Credit

Record the entry to adjust allowance for uncollectible accounts at the year- end. Note: Enter debits before credits. Transact


Solutions

Expert Solution

Requirement 1

Transaction General Journal Debit Credit
1 Allowance for uncollectible Accounts $              730.00
Accounts receivable $        730.00
(To record write off of accounts)

Requirement 2

Transaction General Journal Debit Credit
2 Bad debts expense $              630.00
        Allowance for doubtful accounts $        630.00
(To record bad debts expense)

.Working

Days Accounts receivables x Percent Uncollectable (%) = Estimated Uncollectable
0 TO 60 $      58,000.00 x 0.50% = $             290.00
61 to 90 $      21,000.00 x 1.00% = $             210.00
91 to 120 $        2,800.00 x 10.00% = $             280.00
Over 120 $        1,000.00 x 50.00% = $             500.00
Estimated balance of allowance for doubtful accounts $         1,280.00

.

Beginning balance of Allowance for Bad Debts account $    1,380.00
Less: Amount written off $        730.00
Unadjusted balance for allowance for bad debts $        650.00

.

Estimated balance of allowance for uncollectables $    1,280.00 Cr
Balance in Allowance for uncollectable account (Cr) $        650.00 Cr
Total bad debts to be recorded $        630.00 Cr

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