Question: Glencoe Supply had the following accounts
Glencoe Supply had the following accounts receivable aging schedule at the end of a recent year.
The balance in Glencoe’s allowance for doubtful accounts at the beginning of the year was $58,620 (credit). During the year, accounts in the total amount of $62,400 were written off.
Required:
1. Determine bad debt expense.
2. Prepare the journal entry to record bad debt expense.
3. If Glencoe had written off $90,000 of receivables as uncollectible during the year, how much would bad debt expense reported on the income statement have changed?
Transcribed Image Text:
Proportion Expected to Default Accounts Allowance Receivable Age Amount Required Current $ 1,553 $310,500 47,500 25,000 0.005 0.01 0.13 1-30 days past due 31-45 days past due 46-90 days past due 91-135 days past due Over 135 days past due 475 3,250 12,800 6,100 4,200 0.20 2,560 1,525 2,520 $11,883 0.25 0.60
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