141.At the end of the current year, Accounts Receivable has a balance of $675,000; Allowance for Doubtful Accountshas a debit balance of $5,400; and sales for the year total $3,000,000. An analysis of receivables indicates theuncollectible receivables are estimated to be $45,000.
Determine (a) the amount of the adjusting entry for bad debt expense; (b) the adjusted balances of AccountsReceivable, Allowance for Doubtful Accounts, and Bad Debt Expense; and (c) the net realizable value of accountsreceivable.
142.Discount Mart utilizes the allowance method of accounting for uncollectible receivables. On December 12 thecompany receives a $550 check from Chad Thomas in settlement of Thomas’s $1,100 outstanding accountsreceivable. Due to Thomas’s failing health he is closing his company and is expecting to make no further paymentsto Discount Mart. Journalize this declaration.
143.On June 30 (the end of the period), Brown Company has a credit balance of $2,275 in Allowance for DoubtfulAccounts. An evaluation of accounts receivable indicates that the proper balance should be $30,025. Journalize theappropriate adjusting entry.
144.a) The aging of Torme Designs' accounts receivable is shown below. Calculate the amount of each periodicityrange that is deemed to be uncollectible.
|
Est. Uncollectible Accts
|
Age Interval:
|
Balance:
|
Percentage:
|
Amount:
|
Not past due
|
850,000
|
3.50%
|
|
1~30 days past due:
|
47,500
|
5.00%
|
|
31~60 days past due:
|
21,750
|
10.00%
|
|
61~90 days past due:
|
11,250
|
20.00%
|
|
91~180 days past due:
|
5,065
|
30.00%
|
|
181~365 days past due:
|
2,500
|
50.00%
|
|
Over 365 days past due:
|
1,145
|
95.00%
|
|
Total:
|
939,210
|
|
|
|
|
|
|
b) If the Allowance for Doubtful Accounts has a credit balance of $1,135.00, record the adjusting entry forthe bad debt expense for the year.