On April 1, ABC has an Accounts Receivable balance of $190,000. During the month, credit sales total $210,000. As aresult of collections efforts, the aging of Accounts Receivable is as follows for April 30: Current $100,000 (1% is estimatedto be uncollectible) 0-30 Days Past Due $50,000 (5% is estimated to be uncollectible) 31-60 Days Past Due $20,000 (10% is estimated to be uncollectible) 31-90 Days Past Due $10,000 (20% is estimated to be uncollectible) > 90Days Past Due $20,000 (50% is estimated to be uncollectible) Balance in Allowance for Doubtful Accounts (prior to anyApril 30 entry) $5,000 Credit If ABC is using the % of sales method of estimating its bad debts, what is the journal entrymade at the end of the month if the estimated % of sales that are uncollectible is 4% ?

Accounts receivable is an asset account which is reported on the balance sheet of the firm. Accounts…

On April 1, ABC has an Accounts Receivable balance of $190,000. During the month, credit sales total $210,000. As a result of collections efforts, the aging of Accounts Receivable is as follows for April 30: Current $100,000 (1% is estimated

On April 1, ABC has an Accounts Receivable balance of $190,000. During the month, credit sales total $210,000. As a result of collections efforts, the aging of Accounts Receivable is as follows for April 30: Current $100,000 (1% is estimated

College Accounting, Chapters 1-27

23rd Edition

ISBN:9781337794756

Author:HEINTZ, James A.

Publisher:HEINTZ, James A.

Chapter16: Accounting For Accounts Receivable

Section: Chapter Questions

Problem 2CE: Tonis Tech Shop has total credit sales for the year of 170,000 and estimates that 3% of its credit...

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Question

On April 1, ABC has an Accounts Receivable balance of $190,000. During the month, credit sales total $210,000. As a
result of collections efforts, the aging of Accounts Receivable is as follows for April 30: Current $100,000 (1% is estimated
to be uncollectible) 0-30 Days Past Due $50,000 (5% is estimated to be uncollectible) 31-60 Days Past Due $
20,000 (10% is estimated to be uncollectible) 31-90 Days Past Due $10,000 (20% is estimated to be uncollectible) > 90
Days Past Due $20,000 (50% is estimated to be uncollectible) Balance in Allowance for Doubtful Accounts (prior to any
April 30 entry) $5,000 Credit If ABC is using the % of sales method of estimating its bad debts, what is the journal entry
made at the end of the month if the estimated % of sales that are uncollectible is 4% ?

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