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Problem 9-04A a-d (Video)
Whispering Inc. uses the allowance method to estimate uncollectible accounts receivable. The company produced the following aging of the accounts receivable at year-end.
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Calculate the total estimated bad debts based on the below information.
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Number of Days Outstanding
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Total
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0–30
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31–60
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61–90
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91–120
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Over 120
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| Accounts receivable |
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276,800 |
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92,000 |
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60,700 |
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53,300 |
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38,600 |
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$32,200 |
| % uncollectible |
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1% |
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4% |
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5% |
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8% |
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20% |
| Estimated Bad debts |
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$
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$
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$
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$
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$
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$
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SHOW LIST OF ACCOUNTS
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LINK TO TEXT
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| (b) |
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Prepare the year-end adjusting journal entry to record the bad debts using the aged uncollectible accounts receivable determined in (a).
Assume the current balance in Allowance for Doubtful Accounts is a $7,600 debit. |
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Of the above accounts, $4,700 is determined to be specifically uncollectible.
Prepare the journal entry to write off the uncollectible account. |
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The company collects $4,700 subsequently on a specific account that had previously been determined to be uncollectible in (c).
Prepare the journal entries necessary to restore the account and record the cash collection. |
(Credit account titles are automatically indented when amount is entered. Do not indent manually.)
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No
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Account Titles and Explanation
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Debit
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Credit
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| (b) |
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| (c) |
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| (d) |
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(To reverse write-off.)
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(To record collection of write off.) |
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| Click if you would like to Show Work for this question: |
Open Show Work
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SHOW LIST OF ACCOUNTS
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LINK TO TEXT
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| Question Attempts: 0 of 5 used |
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SAVE FOR LATER
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SUBMIT ANSWER
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