American Public University Operations And Supply Chain Management Assignment Help - Accounting

Question - Swathmore Clothing Corporation grants its customers 30 days' credit. The company uses the
allowance method for its uncollectible accounts receivable. During the year, a monthly bad debt
accrual is made by multiplying 3% times the amount of credit sales for the month. At the fiscal year-
end of December 31, an aging of accounts receivable schedule is prepared and the allowance for
uncollectible accounts is adjusted accordingly.
At the end of 2012, accounts receivable were $586,000 and the allowance account had a credit
balance of $50,000. Accounts receivable activity for 2013 was as follows:
Beginning balance $ 586,000
Credit sales 2,680,000
Collections (2,543,000 )
Write-offs (45,000 )
Ending balance $ 678,000
The company's ...Read More controller prepared the following aging summary of year-end accounts receivable:
Summary
Age Group Amount Percent Uncollectible
0'60 days $ 400,000 4 %
61'90 days 95,000 15
91'120 days 55,000 25
Over 120 days 128,000 36
Total $ 678,000
Required:
1.
Prepare a summary journal entry to record the monthly bad debt accrual and the write-offs during
the year.(If no entry is required for a particular event, select "No journal entry required" in
the first account field.)
A?· Record monthly bad debt expense accrual summary.
A?· Record year 2013 accounts receivable write-offs.

Prepare the necessary year-end adjusting entry for bad debt expense. (If no entry is required for
an event, select "No journal entry required" in the first account field.)

Record the year-end adjusting entry for bad debt expense.

3.1 What is total bad debt expense for 2013?

3.2 Calculate the amount of accounts receivable that would appear in the 2013 balance sheet? ...Read Less

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