Question

O thon Help Al December 31, 2018, the Accounts Receivable balance of Questor Application Inc is $195,000. The Allowance for Bad Dobis accounts aging schedule for its accounts receivable: 1. (Click the icon to view the aging schedule.) Read the requirements 511610 de los Oestor plication Inc prepares the following

Answer 1

account receivable =195000

ALLOWANCE FOR BAD DEBT= 11610 DEBIT

	1-30	31-60	61-90	over 90	Total balance
account receivable	80000	55000	50000	10000	195000
estimated percent	0.7	5	9	49
estimated total uncollectible	560[80000*0.7%]	2750	4500	4900	12710

journal

allowance for bad debt account is credit balance.

the balance should be 12710credit

however it is 11610$ debit

so it should be adjusted by debiting bad debts [12710+11610]=24320$

Dec 31	bad debt expense	24320
	allowance for bad debt account		24320

3.T account allowance for bad debts

	31/12	11610	24320	31/12
	end bal.		12710	31/12

4. balance sheet

current assets
account receivable	195000
less: allowance for bad debt account	12710	182290