A partially completed aging of receivables schedule for Lindy Designs is shown below.
(a) Determine the amount estimated to be uncollectible by completing the aging of receivables schedule. Round calculations to the nearest dollar. (b) If the Allowance for Doubtful Accounts has a credit balance of $9,700, record the adjusting entry for the bad debt expense for the year.(c) If the Allowance for Doubtful Accounts has a debit balance of $9,700, record the adjusting entry for the bad debt expense for the year.

Question

A partially completed aging of receivables schedule for Lindy Designs is shown below.
(a) Determine the amount estimated to be uncollectible by completing the aging of receivables schedule. Round calculations to the nearest dollar.

(b) If the Allowance for Doubtful Accounts has a credit balance of $9,700, record the adjusting entry for the bad debt expense for the year.(c) If the Allowance for Doubtful Accounts has a debit balance of $9,700, record the adjusting entry for the bad debt expense for the year.

Schlindlyne Bellamour · Accepted Answer

Final Answer :

(a)

(a) (b) Dec. 31 Bad Debt Expense 20,410 Allowance for Doubtful Accounts 20,410 (c) Dec. 31 Bad Debt Expense 39,810 Allowance for Doubtful Accounts 39,810 Calculation of expense: Amount of calculated uncollectible accounts $30,110 Plus debit balance of account 9,700 Bad debt expense $39,810

(b) Dec. 31 Bad Debt Expense 20,410
Allowance for Doubtful Accounts 20,410 (a) (b) Dec. 31 Bad Debt Expense 20,410 Allowance for Doubtful Accounts 20,410 (c) Dec. 31 Bad Debt Expense 39,810 Allowance for Doubtful Accounts 39,810 Calculation of expense: Amount of calculated uncollectible accounts $30,110 Plus debit balance of account 9,700 Bad debt expense $39,810

(c) Dec. 31 Bad Debt Expense 39,810
Allowance for Doubtful Accounts 39,810
Calculation of expense:
Amount of calculated uncollectible accounts
$30,110
Plus debit balance of account
9,700
Bad debt expense
$39,810

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