Jills Jumpers has a Balance in Accounts Receivable of $42,000 and a Debit Balance in...
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Accounting
Jills Jumpers has a Balance in Accounts Receivable of $42,000 and a Debit Balance in the Allowance for Doubtful Accounts of $2,200 on Dec 31, 2014. Sales on Account for 2014 were $125,000. Jill estimates that 10% of the Sales on Account will not be paid.
Required:
Record the entry for Bad Debt Expense for Dec 31, 2014
$125,000 x .10 = $12,500 Dr. Cr.
Bad Debt Expense $12,500
Allowance for Bad Debt $12,500
What is the ending Balance in the Allowance for Uncollectible Accounts on Dec 31, 2014?
12,500 2,200 = $10,300
What is the realizable value on Dec 31, 2014?
125,000 10,300 = $114,700
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