accounting for bad debts坏账的会计处理.ppt

* 7 * * * * * 7 * 7 * * * * * * * * * * * * * * * * * * Learning Objective 3 Preparing an Aging of Accounts Receivable ? 2010 Prentice Hall Business Publishing, College Accounting: A Practical Approach, 11e by Slater LO-3 Example Mayfair Co. has the following balances in its accounts at the end of 2008 ? 2010 Prentice Hall Business Publishing, College Accounting: A Practical Approach, 11e by Slater Accounts Receivable Bal. 30,000 Allowance for Doubtful Accounts 500 LO-3 ? 2010 Prentice Hall Business Publishing, College Accounting: A Practical Approach, 11e by Slater The following aging schedule is prepared for the end of the year. Complete the schedule. LO-3 ? 2010 Prentice Hall Business Publishing, College Accounting: A Practical Approach, 11e by Slater Example Accounts Receivable Bal. 30,000 Allowance for Doubtful Accounts 500 Desired balance 2,679 2,179 LO-3 ? 2010 Prentice Hall Business Publishing, College Accounting: A Practical Approach, 11e by Slater What if the Allowance account had a debit balance of $500 before adjustment? Accounts Receivable Bal. 30,000 Allowance for Doubtful Accounts 500 Desired balance 2,679 3,179 LO-3 Learning Objective 4 Writing off an account using the Allowance for Doubtful Accounts method ? 2010 Prentice Hall Business Publishing, College Accounting: A Practical Approach, 11e by Slater LO-4 Allowance for Doubtful Accounts When a company deems an account uncollectible, it is written off and no longer considers it an asset. When the journal entry is made, allowance for doubtful accounts and accounts receivable are reduced. Example: J. Monaco’s account balance of $500 is deemed uncollectible on June 1, 20X8. ? 2010 Prentice Hall Business Publishing, College Accounting: A Practical Approach, 11e by Slater LO-4 General Journal Page 8 Date Account Titles and Description PR Dr. Cr. 20X8 Jun 1 Allowance for Doubtful Accounts 500 Accounts Receivable, J. Monaco 500 Recording Recovered Debts using Allowance for