Jarden Company has credit sales of $2.3 million for year 2013. On December 31, 2013, the company's Allowance for Doubtful Accounts has an unadjusted credit balance of $15,141. Jarden prepares a schedule of its December 31, 2013, accounts receivable by age. On the basis of past experience, it estimates the percent of receivables in each age category that will become uncollectible. This information is summarized in the attached document.
1. Estimate the required balance of the Allowance for Doubtful Accounts at December 31, 2013, using the aging accounts receivable method.
(See attached for full problem description).
2. Prepare the adjusting entry to record bad debts expense at December 31, 2013.© BrainMass Inc. brainmass.com October 2, 2020, 5:22 am ad1c9bdddf
See attached Excel file for formatted response.
Age of Accounts Recivable Accounts Receivable Expected Percent Uncollectible Estimated Uncollectible
This solution provides a solution to a question involving calculating the bad debt expense for Account Receivables with varying expected percentage uncollectable. The answer is provided in an Excel spreadsheet.