The following summarizes the aging of accounts receivable for Johnston Supplies, Inc. as of July...
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Accounting
The following summarizes the aging of accounts receivable for Johnston Supplies, Inc. as of July 31, 2016:
Number of Days Unpaid
Total Accounts Receivable
Historical % Uncollectible
Not yet due
$127,700
2%
1-30 days past due
$90,400
12%
31-60 days past due
$54,800
18%
Over 60 days past due
$33,000
37%
Required:
a.
The unadjusted balance of the Allowance for Doubtful Accounts of Johnston Supplies, Inc. is a credit balance in the amount of $29,307 on July 31, 2016. Prepare the required adjusting entry to record Bad Debt Expense for the year. (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field.)
b.
Johnston Supplies, Inc. writes off $3,201 of uncollectible accounts on August 15, 2016. Prepare the required adjusting entry to record the write-off. (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field.)
c.
Use a T-account to determine the account balance in the Allowance for Doubtful Accounts on August 15, 2016.
rev: 11_04_2015_QC_CS-31712
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