sweetkendra
Nov 26, 2007, 06:14 PM
This I totally do not understand. I have to put this in a general journal but don't understand it.
Caplan Corporation uses the accounts receivable aging method to account for Uncollectible Accounts Expense. As of December 31, Caplan's accountant prepared the following data about ending receivables: $20,000 was not yet due (1percent expected not to be collected), $10,000 was 1-60 days past due (4 percent expected not to be collected), and $2,000 was over 60 days past due (8 percent expected not to be collected). At December 31, Allowance for Uncollectible Accounts had a credit balance prior to adjustment of $200. Prepare Caplan's end-of-period adjusting for estimated uncollectible accounts. Also prepare the entry that would have been made had the credit balance instead been a debt balance.
If you can make any sense of this please let me know.
Caplan Corporation uses the accounts receivable aging method to account for Uncollectible Accounts Expense. As of December 31, Caplan's accountant prepared the following data about ending receivables: $20,000 was not yet due (1percent expected not to be collected), $10,000 was 1-60 days past due (4 percent expected not to be collected), and $2,000 was over 60 days past due (8 percent expected not to be collected). At December 31, Allowance for Uncollectible Accounts had a credit balance prior to adjustment of $200. Prepare Caplan's end-of-period adjusting for estimated uncollectible accounts. Also prepare the entry that would have been made had the credit balance instead been a debt balance.
If you can make any sense of this please let me know.