Summer and Sandcastle’s Resort uses the aging of accounts receivable. Calculate the estimated percent uncollectible as of December 31,2014 before the year end adjustment.
Aging of Accounts Receivable
Accounts Receivable 0-60 Days Over 60 Days Total Receivables
$75000 $3000 = $78000
percent uncollectible 4% 24%
Estimated percent uncollectible 3000 720 = $3720
The end of year balance in the Allowance for Bad Debts is $1900. Journalize the bad debts expense using the allowance method of accounts receivable. (show all math calculations)
Date Account Titles and Explanation Debit Credit
1. On November 1, Horne Corporation accepted a 180-day, 6%, $10000 note receivable from H. Eng in exchange for this account receivable.
2. Journalize the end of year adjustment on Dec 31. (show all math calculations)
3. Journalize:
1)initial entry
2)end of year adjustment, and
3)the collection of the principal interest at maturity, while means you must also calculate the maturity date.
(show all math calculations. If necessary, round up the amount to the nearest dollar)
Date Accounts Debit Credit
