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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:

  1. 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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Answer :

ekkarill92 answered 1 year ago
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