Question : 148. A summary of Klugman Company's December 31, 2016, accounts receivable : 1412695

148.

A summary of Klugman Company's December 31, 2016, accounts receivable aging schedule is presented below along with the estimated percent uncollectible for each age group:

Age Group	Amount	%
0–60 days	$60,000	.5
61–90 days	22,000	1.0
91–120 days	3,000	10.0
Over 120 days	1,000	50.0

The allowance for uncollectible accounts had a balance of $1,400 on January 1, 2016. During the year, bad debts of $750 were written off.

Required:

Prepare all journal entries for 2016 with respect to bad debts and the allowance for uncollectible accounts.

149.

A summary of London Fashion's December 31, 2016, accounts receivable aging schedule is presented below along with the estimated percent uncollectible for each age group:

Age Group	Amount	%
0–60 days	$40,000	.5
61–90 days	15,000	1.5
91–120 days	2,000	15.0
over 120 days	800	80.0

The allowance for uncollectible accounts had a balance of $1,600 at January 1, 2016. During the year bad debts of $1,150 were written off.

Required:

Prepare all 2016 journal entries with respect to bad debts and the allowance for uncollectible accounts.

		Estimated
Age	Amount	Loss Rate	Allowance
0–60 days	$40,000	.005	$ 200
61–90 days	15,000	.015	225
91–120 days	2,000	.150	300
Over 120 days	800	.800	640
			$1,365

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Question : 148. A summary of Klugman Company's December 31, 2016, accounts receivable : 1412695

Solution 5 (1 Ratings )

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5 (1 Ratings )