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B-Good, Inc. has accounts receivable at September 30 of $1,000,000. At September 30, Allowance for Doubtful...

B-Good, Inc. has accounts receivable at September 30 of $1,000,000. At September 30, Allowance for Doubtful Accounts has a
credit balance (prior to adjustment) of $               2,250
The Company uses the percentage of receivables basis for estimating uncollectible accounts. An analysis of the accounts
and the percentage of estimated bad debts are as follows:
Month of Age of 9/30 Estimated %
Sale: Accounts Balance Uncollectible
September 1 - 30 days $650,000 2.5%
August 31 - 60 days 150,000 6.0%
July 61 - 90 days 120,000 33.0%
June 91-120 days 50,000 59.0%
Prior to June over 120 days 30,000 90.0%
$1,000,000
Instructions:
(a) Determine the total estimated uncollectibles.
Total
Age of Estimated
Accounts Balance % Uncollectible
Cell Reference Cell Reference Cell Reference Formula
Cell Reference Cell Reference Cell Reference Formula
Cell Reference Cell Reference Cell Reference Formula
Cell Reference Cell Reference Cell Reference Formula
Cell Reference Cell Reference Cell Reference Formula
Formula
(b) Record the adjusting journal entry to estimate bad debts. Include an explanation of the entry.
Debit Credit
Sep 30 Account Title Formula
Account Title Cell Reference
Explanation
(c) On 10/15, management authorizes the write-off of an uncollectible customer account with a balance of $      9,640
Record this write off.
Debit Credit
Oct. 15 Account Title Cell Reference
Account Title Cell Reference

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ekkarill92 answered 1 year ago
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