On December 31 2020 Toro Company S Allowance For Doubtful Accounts Had An Unadjusted Credit Balance Of 40 000 The Ac 1 (25.07 KiB) Viewed 55 times
On December 31, 2020, Toro Company's Allowance for Doubtful Accounts had an unadjusted credit balance of $40,000. The accountant for Toro has prepared a schedule of the December 31, 2020, accounts receivable by age and, on the basis of past experience, has estimated the percentage of the receivables in each age category that will become uncollectible. This Information is summarized as follows: December 31, 2020 Accounts Receivable Expected Percentage Uncollectible $1,950,000 1.25% 923,000 Age of Accounts Receivable Not due (under 30 days) 1 to 30 days past due 31 to 60 days past due 61 to 90 days past due 2.00 197,000 6.50 126,000 33.00 32,000 Over 90 days past due 68.00 Required: 1. Calculate the amount that should appear in the December 31, 2020, balance sheet as the allowance for doubtful accounts. Allowance for Doubtful Accounts
2. Prepare the journal entry to record bad debt expense for 2020. View transaction list Journal entry worksheet Record the estimate for uncollectible accounts. Note: Enter debits before credits. Date General Journal December 31 Clear entry Record entry Debit Credit View general Journal
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