Question

On December 31, Jarden Co.'s Allowance for Doubtful Accounts has an unadjusted credit balance of $14,000. Jarden prepares a schedule of its December 31 accounts receivable by age. Accounts Receivable Age of Accounts Receivable Expected Percent Uncollectible $ 880,000 Not yet due 1.20 % 352,000 1 to 30 days past due 1.95 70,400 31 to 60 days past due 6.45 35,200 61 to 90 days past due 32.50 14,080 Over 90 days past due 67.00 2. Prepare the adjusting entry to record bad debts expense at December 31. (Round

Answer 1

Dr Bad debt expense 28,799.40

Cr Allowance for doubtful accounts 28,799.40

Step-by-step explanation:

allowance for doubtful accounts balance $14,000

$880,000 not due yet 1.2% $10,560

$350,000 1 to 30 days 1.95% $6,825

$70,400 31 to 60 days 6.45% $4,540.80

$35,200 61 to 90 days 32.50% $11,440

$14,080 over 90 days 67% $9,433.60

total $42,799.40

Journal entry

Dr Bad debt expense 28,799.40

Cr Allowance for doubtful accounts 28,799.40