Sage Hill Merchandising uses an aging schedule to determine its estimated uncollectible accounts at year end

Accounting Nov 26, 2020

Sage Hill Merchandising uses an aging schedule to determine its estimated uncollectible accounts at year end. The percentage estimates of bad debts are as follows: SAGE HILL MERCHANDISING Aged Schedule of Accounts Receivable No. of Days Estimated % Outstanding Amount Uncollectible 0-30 days $61.200 0.60% 31-60 days 26,100 6,30% 61-90 days 12.000 19.000 Over 90 days 5.000 51.00% $104,300 Using the information above for Manoir Merchandising.prepare the adjusting entry to record bad debt expense for each of the following independent situations:
The Allowance for Doubtful Accounts has an unadjusted $1,680 debit balance and the company uses the aging schedule to determine estimated uncollectible accounts. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. Round answers to 2 decimal places, e.g. 52.76.) Number of Days Outstanding 0-30 days SAGE HILL MERCHANDISING Aged Schedule of Accounts Receivable Estimated Estimated % Uncollectible Amount Uncollectible Accounts $61.200 0.60% S 31-60 days 26,100 6.30% 61-90 days 12.000 19.00% 5.000 51.00% Over 90 days $104,300 Debit Credit Date Account Titles and Explanation Der 31
31-ou days 20,100 0:3U70 61-90 days 12.000 19.0096 Over 90 days 5.000 51.00% $104,300 Debit Credit Date Account Titles and Explanation Dec 31
The Allowance for Doubtful Accounts has an unadjusted $1,680 credit balance and the company uses the aging schedule to determine estimated uncollectible accounts. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. Round answers to 2 decimal places, e.g. 52.76.) Debit Credit Date Account Titles and Explanation Dec. 31
The Allowance for Doubtful Accounts has an unadjusted $1.680 debit balance and management estimates that 5% of accounts receivable will be uncollectible. (Credit account titles are automatically indented when the amount is entered. Do not indent manually.) Credit Debit Date Account Titles and Explanation Dec. 31

Expert Solution

Number of	Amount		Estimated
Days	Estimated %	Uncollectible
Outstanding	Uncollectible	Accounts
0-30 Days	61200	0.60%	367.2
31-60 Days	26100	6.30%	1644.3
61-90 Days	12000	19%	2280
Over 90 Days	5000	51%	2550
	104300		6841.5

Journal Entries
Date	Account Titles and Explanation	Debit	Credit
Dec-31	Bad debt Expense	5161.5
	To Allowance for Doubtful Accounts		5161.5
	(To record Bad debt expense)

Dec-31	Bad debt Expense	8521.5
	To Allowance for Doubtful Accounts		8521.5
	(To record Bad debt expense)

Archived Solution

Unlocked Solution

You have full access to this solution. To save a copy with all formatting and attachments, use the button below.

Already a member? Sign In

Important Note: This solution is from our archive and has been purchased by others. Submitting it as-is may trigger plagiarism detection. Use it for reference only.

For ready-to-submit work, please order a fresh solution below.

Or get 100% fresh solution

Get Custom Quote