Ageing Schedule for Cain Ltd. Assignment | Top Universities
The following is an account receivable ageing schedule for Cain Ltd. Customer Not yet due Number of days past due 1-30 31-60 61-90 Over 90 $ 9000 $11000 Aber Bohr Case Total $ 20000 30 000 50 000 38 000 120 000 258 000 $ 30 000 15000 5000 $30 000 Datz Major Ltd $38000 92 000 137000 15000 29 000 13 000 24000 30 000 38 000 Estimated percentage uncollectable Total estimated bad debts 3% $ 34 930 $ 4110 6% $ 1740 12% $ 2880 24% $ 7200 50% $19000 At 31 December 2019 the unadjusted balance in allowance for doubtful debts is a credit of $10000.
Required
(a) Journalise and post the adjusting entry for bad debts on 31 December 2019.
b) Journalise and post to the allowance account these 2020 events and transactions. (Use running-balance format.) 1. 1 March, a $600 customer balance originating in 2020 is judged uncollectable. 2. 1 May, a cheque for $600 is received from the customer whose account was written off as uncollectable on 1 March
c) Journalise the adjusting entry for bad debts at 31 December 2020, assuming that the unadjusted balance in allowance for doubtful debts is a debit of $1100 and the ageing schedule of accounts receivable indicates that total estimated bad debts will be $29 100. Get Accounting homework help today
