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On December 31, 2020, Toro Company's Allowance for Doubtful Accounts had an unadjusted credit balance of $30,000. The ac
Posted: Sun Jun 05, 2022 7:37 pm
by answerhappygod
- On December 31 2020 Toro Company S Allowance For Doubtful Accounts Had An Unadjusted Credit Balance Of 30 000 The Ac 1 (30.43 KiB) Viewed 37 times
On December 31, 2020, Toro
Company's Allowance for Doubtful Accounts had an unadjusted credit balance of $30,000. 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 Expected Percentage Uncollectible Receivable 1.25% 2.00 $1,460,000 691,000 147,000 94,000 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 Over 90 days past due 6.50 33.00 24,000 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.