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    Ghc318's Avatar
    Ghc318 Posts: 13, Reputation: 1
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    #1

    Feb 7, 2010, 12:42 AM
    Adjustment entry, aging schedule to find Allowance for bad debts
    Accounts Recievable Balance $34,825; Allowance for Bad Debt Balance $409
    0-30 days = 20,000 = 5%
    30-60 days = 10,000 = 20%
    Over 60 days = Balance = 40%

    I assumed that "Balance" meant the remaining amount of Acc./Rec. after 60 days. The adjusting entry I came up with was..
    Bad Debt Expense 4,521
    Allowance for Bad Debt 4,521
    After this adjustment entry the balance on Allowance for Bad Debts would be $4,930.
    ROLCAM's Avatar
    ROLCAM Posts: 1,420, Reputation: 23
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    #2

    Feb 7, 2010, 02:49 AM

    1 20,000.00 0.05 1,000.00
    2 10,000.00 0.20 2,000.00
    3 4,825.00 0.40 1,930.00

    34,825.00 4,930.00

    The journal entry is 100% correct.
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