A.

Allowance method - because company has AFDA on its ledger/accounts

B.
% of sales method
Bad debts expense 13500
Allowance for doubtful accounts 13500

% of receivables method
Bad debts expense
Allowance for doubtful accounts
% of receivables method (2)
Bad debts expense
Allowance for doubtful accounts
7500
17500 is the amount we need to show on financial
7500 statement, while 10,000 is the current amount. We
journalize the difference
14000 Same as above, but since AFDA is in debit we have
14000 to futher increase the amount

C.
Allowance for doubtful accounts 900
Accounts receivable 900

D.
Bad debts expense 900
Accounts receivable 900
 to show on financial
e current amount. We
fference

A is in debit we have
he amount
Date

Jan 3 Account Receivable- Mbek Compan 30,000

Sales Revenue 30,000

Jan 25 Notes Receivable-Mbek Company 30,000

Account Receivable- Mbek Company 30,000

Feb 18 Notes Receivable- Teoteblung 7,000

Sales Revenue 7,000

Apr 25 Cash 30,600

Notes Receivable- Mbek Company 30,000
Interest Revenue 600

Apr 30 Cash 15,450

Notes Receivable- Guguk 15,000
Interest Revenue 450

May 26 Notes Receivable-Moo Inc. 5,000

Account Receivable- Moo Inc 5,000

Áug 19 Cash 7,315

Notes Receivable- Teoteblung 7,000
Interest Revenue 315

Aug 26 Account Receivable 5,088

Notes Receivable- Moo Inc 5,000
Interest revenue 88

Sep 2 Notes Receivable- Roar 15,000

Sales Revenue 15,000
Customer Due Date Balance
ABC 8/17/2017 12,500,000 Age Class % Uncollectible
DEF 11/14/2017 30,000,000 Not Pass Due 1%
TUV 12/29/2017 14,500,000 1-30 days past due 4%
XYZ 10/2/2017 8,000,000 31-60 days past due 16%
IJK 12/15/2016 9,250,000 61-90 days past due 25%
MNO 1/4/2018 17,800,000 91-120 days past due 40%
PQR 2/5/2018 3,100,000 >120 days past due 80%
Total 95,150,000

A.
Bad debts expense 15,000,000
Accounts Receivable 15,000,000

Bad debts expense 28,500,000

Accounts Receivable 28,500,000

Bad debts expense 2,000,000

Accounts Receivable 2,000,000

B.
Allowance for Doubtful A 15,000,000
Accounts Receivable 15,000,000

Allowance for Doubtful A 28,500,000

Accounts Receivable 28,500,000

Allowance for Doubtful A 2,000,000

Accounts Receivable 2,000,000

C.
Bad Debts Expense 21,600,000
Allowance for Doubtful Accounts 21,600,000
D. Table of Aging of Receivables
Customer Due Date Not Yet Due 1-30 Days 31-60 Days
ABC 8/17/2017
DEF 11/14/2017 30,000,000
TUV 12/29/2017 14,500,000
XYZ 10/2/2017
IJK 12/15/2016
MNO 1/4/2018 17,800,000
PQR 2/5/2018 3,100,000
Total 20,900,000 14,500,000 30,000,000
% uncollectible 1% 4% 16%
Uncollectible amount 24,989,000 209,000 580,000 4,800,000

Bad debts expense 16,989,000

Allowance for doubtful accounts 16,989,000
61-90 Days 91-120 Days 120+ days
12,500,000

8,000,000
9,250,000

8,000,000 - 21,750,000
25% 40% 80%
2,000,000 - 17,400,000