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Accounting problems for Bogus Company

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.

Solution Preview

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 ...

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.

$2.19