Question

Herska Corp at December 31, 2017

Credit sales: 1,200,000

Accounts Receivable: 350,000

Allowance for doubtful accounts = 1,200 Debit

1. Assume that the accountants for Herska performed an aging of accounts receivable and determined the following

AGE                             Amount                       % estimated uncollectable

Not yet due                 300,000                       5

0-60 day past              40,000                         40

> 60 days past             10,000                         60

1. The entry to adjust for estimated bad debts at December 31, 2017 would be:

2. After the entry #1 is made above, what is the amount of net realizable receivables?

3. After the entry in #1 is made above, what is the amount showing on the income statement as Bad debt expense?

4. on January 10, 2018 Domino Corp determined that one receivable in the amount of 2,200 was not going to be collectible. the entry to write off this receivable is as follows?

 

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