On 15 June 2020 Great Hall Pty Ltd reestablishes the account of one customer and records...

On 15 June 2020 Great Hall Pty Ltd reestablishes the account of one customer and records the collection of $2,200 in full payment of the account that had previously been written off. The present balance of the allowance for doubtful debts account is $1,000 CR.

After the above adjustment, Great Hall Pty Ltd assigns the following probability of uncollectible to each age group of receivables as at 30 June 2020 in the below table.

Age category	Amount as at 30 June 2020 ($)	Percentage	Estimated uncollectible as at 30 June 2020 ($)
Not yet due	146,000
1–30 days overdue	24,000
31–60 days overdue	10,000
61–90 days overdue	6,000
Over 90 days overdue	2,600
Total	188,600

Required:

In the table above, estimate the total uncollectible receivables as at 30 June 2020.

Provide journal entries to record the recovery of the bad debt on 15 June 2020, and adjust the closing balance of the allowance for doubtful debts account on 30 June 2020.

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Expert Solution

Answer :

ekkarill92 answered 1 year ago

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