Solution-Calculate the balance of the allowance for

Calculate the balance of the allowance for doubtful accounts

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Reference no: EM132476775

The Allowance for Doubtful Accounts balance on 1/1/X8 is $ 528.00 for the Farrior Hotel. The aged accounts receivables listing as of 12/31/x8 is as follows:

	CURRENT	30 days	60 days	90 days	120 Days
		300		200	¹⁰⁰
Bortz Carl^Adert		200	250
	300
Diker	500			200		Ca
Ebbert			300		300
Others	26,200	5,200	2,450	1,600	1,500	^C ^C^O
The estimated percentage of bad debts is as follows: Current 2% ((300+500+26,200)2%)= $540 30 4% ((300+200+5,200)4%)= $ 228 60 10% ((250+300+2450)10%)= $ 300 90 20% ((200+200+1600)20%)= $ 400 120 40% ((100+300+1500)*40%)= $ 760

REQUIRED

Question a) Using the Allowance Method-Aged Accounts Receivable, calculate the balance of the allowance for doubtful accounts as of 12/31/X8.

Question b) Prepare the appropriate journal entry.

Reference no: EM132476775

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Calculate the balance of the allowance for doubtful accounts

Reference no: EM132476775

Reference no: EM132476775

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