The following was taken from the records of Smith Company in the year ending December 31,...

The following was taken from the records of Smith Company in the year ending December 31, 20X7. Journalize the following transactions in an Excel spreadsheet for year-end 20X7 using the aging method. Assume that the allowance for doubtful accounts has a beginning credit balance of $8,000 on January 1, 20X7. The assignment template is attached below. Label the transactions below as journal entries #1 to #4, along with the dates of the entries: February 20, 20x7: Wrote off Jones account: $250. May 20, 20x7: Received $410 as partial payment on the $700 account receivable due from Garcia. August 10, 20x7: Received $725 from Jones on the account written off on February 20, 20x7. September 15: Wrote off the individual account receivables for the following customers as payment not expected in future: Tang: $400; Mulaka: $210; Quan: $375. December 31, 20x7: Smith Company prepared the following aging schedule for it accounts receivables: $120,000 of Accounts Receivable (A/R) are 0-30 days late: 3% probability of being uncollectible. $30,000 of A/R are 31-60 days late: 10% probability of being uncollectible. $14,000 of A/R are 61-90 days late: 20% probability of being uncollectible $1,000 of A/R are later than 90 days late: 50% probability of being uncollectible Instructions: Using the Excel spreadsheet template provided for this assignment, submit the following items: The four journal entries (1 to 4 above) with a one-sentence description for each The T-account for the allowance for doubtful accounts The journal entry to record bad debt expense The balance sheet presentation of net realizable value, including gross accounts receivables of $29,500 Company Company- December 31, 201X

Journal#	Date	Account Title			Debit	Credit
a	20-Feb	Allowance for doutful accounts
		Jones- Accounts receivable

b
	20-May	Cash
		Garcia-Accounts Receivables


c	10-Aug	Cash
		Allowance for doubtful accounts



d	15-Sep	Allowance for doubtful accounts
		Tang-Accounts Receivable
		Mukala-Accounts Receivable
		Quan-Accounts Receivable



Question 2
			Dates	T-Account for Allowance for doubtful accounts
				Debit	Credit
			Begining balance
			20-Feb
			15-Sep
			Bad Debt Expense=
			Ending Balance

Calculations: Aging schedule
	Days Late	Accounts Receivable Amount	Uncollection Probability	Uncollectible Amount








Question 3

	Date	Account Title			Debit	Credit
	31-Dec	Bad Debt Expense
		Allowance for doubtful accounts



Question 4
Balance Sheet Presentaion
	Gross Accounts Receivables
	Ending Balance of Allowance for Doubtbul Accounts
		Net Realizable Balance

Expert Solution

All working forms part of the answer
Answers are provided as asked
Journal

Journal#	Date	Account Title	Debit	Credit
a	20-Feb	Allowance for doutful accounts	$ 250.00
		Jones- Accounts receivable		$ 250.00
		(Bad debts written off)

b	20-May	Cash	$ 410.00
		Garcia-Accounts Receivables		$ 410.00
		(cash received)

c	10-Aug	Cash	$ 725.00
		Allowance for doubtful accounts		$ 725.00
		(Cash received fron aaccount written off)


d	15-Sep	Allowance for doubtful accounts	$ 985.00
		Tang-Accounts Receivable		$ 400.00
		Mukala-Accounts Receivable		$ 210.00
		Quan-Accounts Receivable		$ 375.00
		(Bad debt written off)

Question 2

Dates	T-Account for Allowance for doubtful accounts
	Debit	Credit
Begining balance		$ 8,000.00
20-Feb	$ 250.00
15-Sep	$ 985.00
10-Aug		$ 725.00
Unadjusted balance		$ 7,490.00
Bad Debt expense [See Question 3 working solution]		$ 2,410.00
Ending Balance		$ 9,900.00

Question 3

Days Late	Accounts Receivable Amount	Uncollection Probability	Uncollectible Amount
0-30	$ 1,20,000.00	3%	$ 3,600.00
31-60	$ 30,000.00	10%	$ 3,000.00
61-90	$ 14,000.00	20%	$ 2,800.00
90-x	$ 1,000.00	50%	$ 500.00
TOTAL	$ 1,65,000.00		$ 9,900.00

Question 4

Date	Account Title	Debit	Credit
31-Dec	Bad Debt Expense	$ 2,410.00
	Allowance for doubtful accounts		$ 2,410.00

Question 5

Gross Accounts Receivables (A)	$ 1,65,000.00
Ending Balance of Allowance for Doubtful Accounts (B)	$ 9,900.00
Net Realizable Balance (A – B)	$ 1,55,100.00

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