bad depts expense

Sigchi4life
Category:
Accounting
Price: $20 USD

Question description

At December 31, 2007 end of the annual reporting period, the accounts of Weasel Company showed the following.

a: Sales revenue for 2007, $180,000, of which one-sixth was on credit.

b. Allowance for doubtful accounts, balance January 1, 2007, $900 credit.

C. Accounts Receivable, balance December 31, 2007, prior to any write offs of uncollectible acounts during 2007. $18050

d. UNcollectible accounts past due 120 days to be written off, December 31, 2007, $1050

e. Aging schedule at December 31, 2007, showing the following breakdown of total accounts receivable.

Not past due   $10000

Past Due 1-60 Days  $4000

Past Due over 60 days $4050

Question?

1. Give the 2007 adjusting entry to record bad debts expense for each of the following independent assumptions concerning bad dept loss rates.

a. On credit Sales, 1.5%

B. On total recievables at year end, 2.5%

c. On aging Schedule: Not past due .5%; past due 1-60 says, 1%, and past due over 60 days, 8%

2. What would be reported on the 2007 balance sheet as net accounts recievable for each case.


Tutor Answer

(Top Tutor) Daniel C.
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School: University of Virginia
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