Current Attempt In Progress Cheyenne Inc Uses The Allowance Method To Estimate Uncollectibles The Company Produced The 1 (32.16 KiB) Viewed 61 times
Current Attempt in Progress Cheyenne Inc. uses the allowance method to estimate uncollectibles. The company produced the following aging of the accounts receivable at year-end. (a) ✓ Your answer is correct. Calculate the total estimated uncollectibles based on the below information. Number of Days Outstanding Total $320,700 0-30 $102,500 31-60 $69,600 61-90 $63.000 Accounts receivable % uncollectible 1% 4% 5% Estimated Bad debts $ eTextbook and Media List of Accounts 18511 1025 2784 3150 91-120 $46,400 8% 3712 $ Over 120 $39,200 20% 7840 Attempts: 1 of 3 used
(b)-(d) (b) Prepare the year-end adjusting journal entry to record the Bad Debt Expense using the aged uncollectible accounts receivable determined in (a). Assume the unadjusted balance in Allowance for Doubtful Accounts is a $8,300 debit. Of the above accounts, $4,800 is determined to be specifically uncollectible. Prepare the journal entry to write off the uncollectible account. (c) (d) The company collects $4,800 subsequently on a specific account that had previously been determined to be uncollectible in (c). Prepare the journal entries necessary to restore the account and record the cash collection. (Credit account titles are automatically indented when amount is entered. Do not indent manually) No Account Titles and Explanation Debit Credit (b) (c) (d) (To reverse write-off.) (To record collection of write off!
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