E6-14 (Algo) Recording and Reporting a Bad Debt Estimate Using Aging Analysis LO6-2 Casilda Company uses the aging method to estimate bad debt expense. Casilda estimates that 4% of receivables that are not yet due, 13% of receivables that are up to 180 days past due, and 31% of receivables that are more than 180 days past due will be uncollectible. The company currently has $50,300 of accounts receivable that are not yet due, $14,100 that are up to 180 days past due, and $5,700 that are more than 180 days past due. At December 31, the end of the current year, the Allowance for Doubtful Accounts balance is $100 (credit) before the end-of-period adjusting entry is made. Required: 1. Prepare the appropriate bad debt expense adjusting entry for the current year. 2. Show how gross accounts receivable, the allowance for doubtful accounts, and net accounts receivable should be shown on the December 31 balance sheet.

E6-14 (Algo) Recording and Reporting a Bad Debt Estimate Using Aging Analysis LO6-2 Casilda Company uses the aging method to estimate bad debt expense. Casilda estimates that 4% of receivables that are not yet due, 13% of receivables that are up to 180 days past due, and 31% of receivables that are more than 180 days past due will be uncollectible. The company currently has $50,300 of accounts receivable that are not yet due, $14,100 that are up to 180 days past due, and $5,700 that are more than 180 days past due. At December 31, the end of the current year, the Allowance for Doubtful Accounts balance is $100 (credit) before the end-of-period adjusting entry is made. Required: 1. Prepare the appropriate bad debt expense adjusting entry for the current year. 2. Show how gross accounts receivable, the allowance for doubtful accounts, and net accounts receivable should be shown on the December 31 balance sheet.

Cornerstones of Financial Accounting

4th Edition

ISBN:9781337690881

Author:Jay Rich, Jeff Jones

Publisher:Jay Rich, Jeff Jones

Chapter5: Sales And Receivables

Section: Chapter Questions

Problem 85APSA: Determining Bad Debt Expense Using the Aging Method At the beginning of the year, Tennyson Auto...

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