FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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The following information was taken from the accounts receivable records of Monty Corporation as at December 31, 2020:

    Outstanding
Balance
  Percentage Estimated
to be Uncollectible
0 – 30 days outstanding   $156,000   0.5%
31 – 60 days outstanding   65,400   2.5%
61 – 90 days outstanding   40,000   4.0%
91 – 120 days outstanding   20,800   6.5%
Over 120 days outstanding   5,100   10.0%

(a) Prepare the year-end adjusting entry for bad debt expense, assuming allowance for doubtful accounts had a credit balance of $1,280 prior to the adjustment. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.)

Account Titles and Explanation
Debit
Credit
 
 
 
 
 
 

(b) Prepare the year-end adjusting entry for bad debt expense, assuming allowance for doubtful accounts had a debit balance of $4,010 prior to the adjustment. (Round answers to 0 decimal places, e.g. 8,971. Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.)

Account Titles and Explanation
Debit
Credit
 
 
 
 
 
 
 

List of Accounts

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