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blushfly496Lv1
28 Sep 2019
Assume the Trade Federation uses the aging of receivablesmethod. Below are the details regarding the outstanding grossAccounts Receivable.
Days outstanding
1-30
31-60
61-90
91-120
120+
Customer 1
1,200,000
600,000
400,000
150,000
0
Customer 2
750,000
820,000
580,000
0
0
All other Customers
970,000
1,100,000
470,000
340,000
100,000
Estimated % uncollectable
1%
2%
3%
5%
15%
1. Complete a journal entry necessary at the end of the fiscalyear, December 31, to record bad debt expense.
Date
Account
A.
Debit
Credit
2. What amount would NET receivables be reported on the balancesheet?
Assume the Trade Federation uses the aging of receivablesmethod. Below are the details regarding the outstanding grossAccounts Receivable.
Days outstanding | 1-30 | 31-60 | 61-90 | 91-120 | 120+ |
Customer 1 | 1,200,000 | 600,000 | 400,000 | 150,000 | 0 |
Customer 2 | 750,000 | 820,000 | 580,000 | 0 | 0 |
All other Customers | 970,000 | 1,100,000 | 470,000 | 340,000 | 100,000 |
Estimated % uncollectable | 1% | 2% | 3% | 5% | 15% |
1. Complete a journal entry necessary at the end of the fiscalyear, December 31, to record bad debt expense.
Date | Account | A. | Debit | Credit |
2. What amount would NET receivables be reported on the balancesheet?
Trinidad TremblayLv2
28 Sep 2019