Homework Answers
a.
| 0-30 | 30-60 | 61-90 | Over 90 | Total | |
|
Balance in accounts receivable December 31, 2018 |
$ 4,00,000 | $ 1,50,000 | $ 40,000 | $ 10,000 | |
| % of receivables estimated to be uncollectible | 0.50% | 1% | 2% | 5% | |
| Allowance for Doubtful Debts | $ 2,000 | $ 1,500 | $ 800 | $ 500 | $ 4,800 |
Bad Debt expense = Allowance for Doubtful Debts Dec 31, 2018 -
Balance Jan 1, 2018 + Accounts written off
= $4800 - $5000 + $6500 = $6300
b.
| 0-30 | 30-60 | 61-90 | Over 90 | Total | |
|
Balance in accounts receivable December 31, 2019 |
$ 4,40,000 | $ 1,60,000 | $ 30,000 | $ 20,000 | |
| % of receivables estimated to be uncollectible | 0.50% | 1% | 2% | 5% | |
| Allowance for Doubtful Debts | $ 2,200 | $ 1,600 | $ 600 | $ 1,000 | $ 5,400 |
Accounts Receivable Dec 31, 2019 = Dec 31, 2018 balance + Bad
debts - Accounts written off
$5400 = $4800 + $8000 - Accounts written off
Accounts written off = $7400
c.
| Account Titles | Debit | Credit |
| Bad Debt Expense | $ 6,300 | |
| Allowance for Doubtful accounts | $ 6,300 |
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