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Calculation of debt debt expense, writing off receivables

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Wall Inc. uses the allowance method to estimate uncollectible accounts receivable. The company produced the following aging of the accounts receivable at year end.
Number of Days Outstanding
Total 0-30 31-60 61-90 91-120 Over 120
Accounts receivable $375,000 $220,000 $90,000 $40,000 $10,000 $15,000
% uncollectible 1% 4% 5% 8% 10%
Calculate the total estimated bad debts based on the above information.
Number of Days Outstanding
Total 0-30 31-60 61-90 91-120 Over 120
Accounts receivable $375,000 $220,000 $90,000 $40,000 $10,000 $15,00
% uncollectible 1% 4% 5% 8% 10%
Estimated bad debts $ $ $ $ $ $
Prepare the year-end adjusting journal entry to record the bad debts using the aged uncollectible accounts receivable determined in previous question. Assume the current balance in Allowance
for Doubtful Accounts is a $8,000 debit.
Description/Account Debit Credit
Of the above accounts, $5,000 is determined to be specifically uncollectible. Prepare the journal entry to write off the uncollectible account.
Description/Account Debit Credit
The company collects $5,000 subsequently on a specific account that had previously been determined to be uncollectible in previous question. Prepare the journal entry(ies) necessary to restore
the account and record the cash collection.
Description/Account Debit Credit
Accounts receivable
Comment on how your answers to (a)-(d) would change if Wall Inc. used 3% of total accounts receivable, rather than aging the accounts receivable. What are the advantages to the company
of aging the accounts receivable rather than applying a percentage to total accounts receivable?

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The solution explains the process of recording cash received for an account that is written off as well the adjusting entries to be made

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WALL Inc
Total Number of days outstanding
0-30 31-60 61-90 91-120 >120
Amount 375,000 220,000 90,000 40,000 10,000 15,000
% uncollectible 1% 4% 5% 8% 10%
Estimated bad debt 10,100 2,200 3,600 2,000 800 1,500

The bad debts are estimate at $10,100. The balance in the allowance account is $8,000 debit. The balance ...

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