60.1K

Verified Solution

Link Copied!

Required information [The following information applies to the questions displayed below) On December 31, Jarden Co.'s Allowance for Doubtful Accounts has an unadjusted credit balance of $14,500. Jard prepares a schedule of its December 31 accounts receivable by age. Accounts Receivable S 840,000 336.000 67,200 33, 600 13,440 Age of Accounts Receivable Not yet due 1 to 30 days past due 31 to 60 days past due 61 to 90 days past due Over 90 days past due Expected Percent Uncollectible 1.30 2.05 6.55 33.00 69.00 Required: 1. Compute the required balance of the Allowance for Doubtful Accounts at December 31 Estimated Uncollectible # Accounts Percent Receivable Uncollectible ( 40%) Not due: 1 to 30 31 to 60: x 61 to 90 Over 90 Estimated balance of allowance for uncollectibles x 11 Over 90 days past due 69.00 2 of 3 2. Prepare the adjusting entry to record bad debts expense at December 31. (Round percentage answers to nearest whole percent. Do not round intermediate calculations.) View transaction list Journal entry worksheet > DOK 1 Record the estimated bad debts. Note: Enter debits before credits Debit Credit Date General Journal Dec 31 nces View general Journal Clear entry Dacord entry Save Required information (The following information applies to the questions displayed below) On December 31, Sarden Co's Allowance for Doubtful Accounts has an unacjusted credit balance of $14,500. Jarden prepares a schedule of Is December 31 accounts receivable by age Age of Expected Percent Account cele conceivable Um collectie 340.000 Not yet du 1.300 336.000 to 30 daye post de 2.05 67.200 31 to 60 days past due 6.55 33.600 61 to 90 days past due 33.00 23.40 Over 90 days past due 3. On June 30 of the next year, Jarden concludes that a customer's 54.550 receivable is uncollectible and the account is written off Does this write off directly affect Jarden's net income? Affects Jardian's net income

Answer & Explanation Solved by verified expert

See Answer