Problem 8-1A Flint Corporation uses the allowance method of accounting for bad d
ID: 2564746 • Letter: P
Question
Problem 8-1A Flint Corporation uses the allowance method of accounting for bad debts. The company produced the following aging of the accounts receivable at year-end Calculate the total estimated bad debts on the below information Number of Days Outstanding 61-90 $48,000 Total 0-30 31-60 91-120 Over 120 Accounts Receivable $537,000 $376,000 $85,000 $18,000 $10,000 % uncollectible 196 4% 5% 996 11% Estimated bad debts Prepare the year-end adjusting journal entry to record the bad debts using the aged uncollectible accounts receivable determined in above. Assume the unadjusted balance in Allowance for Doubtful Accounts is a $3,700 debit. (Credit account titles are automatically indented when amount is entered. Do not indent manually.) Account Titles and Explanation Debit CreditExplanation / Answer
Description Total 0-30 31-60 61-90 91-120 over 120 Accounts receivable 537000 376000 85000 48000 18000 10000 % uncollectible 1% 4% 5% 9% 11% Estimated bad debts 12280 3760 3400 2400 1620 1100 journal entries NO Accounts Title and Explanation Debit Credit a Bad debts Expense(12280+3700) 15980 Allowance for doubtful accounts 15980 b Allowance for doubtful accounts 5200 Accounts receivable 5200 c(1) Accounts receivable 5200 Allowance for doubtful accounts 5200 c(2) cash 5200 Accounts receivable 5200