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Accounting problems for Bogus Company

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At December 31st, 2007, The Accounts Receivable balance of "Bogus Company" is $300,000. The Allowance for Doubtful Accounts has a $3,900 credit balance. "Bogus Company" prepares the following aging schedule for its accounts receivable.
Age of Accounts:

total balance 1-30 days 31-60 days 61-90 days over 90
days

$30,000 $140,000 $80,000 $70,000 $10,000

estimated percent
uncollectible 0.5% 1.0% 6.0% 50%

Need assistance in:

1) Journalizing the year end adjusting entry for doubtful accounts on the basis of the aging schedule. Show the T-account for the Allowance at December 31st,2007

2) Show how "Bogus Company" will report Accounts Receivable on its December 31st, 2007 balance sheet.

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Solution Summary

This solution is comprised of a detailed explanation to journalize the year end adjusting entry for doubtful accounts on the basis of the aging schedule, show the T-account for the Allowance at December 31st, 2007, and show how "Bogus Company" will report Accounts Receivable on its December 31st, 2007 balance sheet.

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At December 31st, 2007, The Accounts Receivable balance of "Bogus Company" is $300,000. The Allowance for Doubtful Accounts has a $3,900 credit balance. "Bogus Company" prepares the following aging schedule for its accounts receivable.
Age of Accounts:

total balance 1-30 days 31-60 days 61-90 days over 90
days

$30,000 $140,000 $80,000 $70,000 $10,000

estimated percent ...

Purchase this Solution


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