Will leave a like, please show your work. Joe Company, Inc. reported the following on...
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Will leave a like, please show your work. Joe Company, Inc. reported the following on its December 31, 2020 balance sheet: Accounts Receivable, net of allowance for doubtful accounts of $22,750 $152,250
During 2021, cash collections were $895,000. In addition, $34,400 in accounts receivable were written off and $2,500 was collected from accounts written off in 2020. An aging of accounts receivable as of December 31, 2021 is presented below. The company makes its adjusting entry for bad debts at the end of the year.
Age group. | Amount. | Estimated Percent Uncollectible
Current | 112,800 | 2%
31-60 | 56,400 | 20%
61-90 | 33,840 | 50%
91-120 | 18,048 | 75%
120+ | 4,512 | 100%
What was the accounts receivable - allowance for doubtful accounts balance PRIOR to recording the adjusting entry for bad debts at the end of the year?
What were credit sales during 2021?
If the company records bad debts as 4.2% of credit sales, what is the 12/31/21 adjusting entry? NRV of A/R?
Adjusting journal entry:
NRV of A/R:
If the company records bad debts based on the aging analysis, what is the 12/31/21 adjusting entry? NRV of A/R?
Adjusting journal entry:
Net realizable value of A/R:
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