QUESTION 5 Partisty correct 150 points out o 100g gpuestion Credit Losses Based
ID: 2400340 • Letter: Q
Question
QUESTION 5 Partisty correct 150 points out o 100g gpuestion Credit Losses Based on Accounts Receivable At December 31. Rinchart Company had a balance of $311.800 in its Accounts Receivable account and a credit balance of $2,800 in the Allowance for Doubtful Accounts account. The accounts receivable T-account consisted of $312.600 in debit balances and $5.800 in credit balances. The company aged its accounts as follows Carrent 0-60 days past due 61-180 days pant due13.200 Over 180 days past ue 10400 30,000 317,600 n the past, the company has experienced credit losses as follows 2% of current balances 6% of balances 0 60 days past due 15% of balances 61 180 days past due, and 30% of balances over six months past due. The company bases its allowance for doubtful accounts on an aging analysis of accounts receivable Required a Prepare the adjusting entry to record the alowance for doubhw accounts for the y b. Show how Accounts Receiable dincluding the creait balancesd the Alowance for Doubw Accouns would appear on the December 31 balance sheet General Journal Date Description Debit Credit Dec 31 Bad Debts Expense Allowance for Doubtful Accounes 8695x To record allowance for credr losses b. Current Assets Accounts ReceivableExplanation / Answer
a.
Working:
b.
General Journal Date Description Debit Credit Dec. 31 Bad Debt Expense 12180 Allowance for Doubtful Accounts 12180 To record allowance for credit losses.