The accounts receivable listing of Grant Corporation shows the following on December 31, 2015. The general ledger showed a $200 credit balance in Allowance for Doubtful Accounts before adjustment.
|
Name of customer |
Invoice date |
Amount |
|
Greenwood Fruit Packers Ltd. |
May 2 |
$ 600 |
|
Granville Ltd. |
August 15 |
335 |
|
Kutcher Inc. |
October 2 |
720 |
|
Kutcher Inc. |
December 8 |
275 |
|
Lamb Fruit Inc. |
March 3 |
445 |
|
Grimm Fruit Company |
November 11 |
822 |
|
Fehr Produce Corp. |
November 20 |
250 |
|
Fehr Produce Corp. |
September 4 |
465 |
|
Fehr Produce Corp. |
July 10 |
922 |
|
Golden Fruit Ltd. |
December 5 |
500 |
|
Required: |
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|
1. |
Prepare an aging of accounts receivable at December 31, 2015, divided into five time periods as follows: |
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|
Age (days) |
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|
1-30 |
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|
31-60 |
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|
61-90 |
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|
91-120 |
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|
121-150 |
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|
Over 150 |
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2. |
Compute the estimated loss (rounded to two decimal places) based on the following: |
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|
Age(days) |
Estimated loss percentage |
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|
1-30 |
0.05% |
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|
31-60 |
1% |
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|
61-90 |
3% |
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|
91-120 |
10% |
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|
121-150 |
25% |
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|
Over 150 |
50% |
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|
3. |
Prepare the journal entry to record the bad debt expense for the year. |
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