At the end of current period, Heller Corporation's balance for allowance for uncollectible accounts is $120...

At the end of current period, Heller Corporation's balance for allowance for uncollectible accounts is $120 (credit). Heller has aged its accounts receivable and estimated uncollectible accounts as follows (in thousands). Age of Receivables A/R Balance Estimated % uncollectible (Current $12,100 1%) (30-60 days past due 2,640 3%) (61-90 days past due 1,870 6%) (Over 90 days past due 926 10% )

Required:

a)Determine the appropriate allowance for uncollectible accounts.

b) How will Heller Corporation report its accounts receivable on the balance sheet?

c) What is Heller’s bad debt expense of the period.

d) Prepare a journal entry to record the necessary adjusting entry for the current period. Early next period, Heller wrote off $50 owed by a bankrupted customer.

e) Prepare a journal entry to record the write-off.

Solutions

Expert Solution

Please comment for any explanation,

Thanks,

ekkarill92 answered 1 year ago

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