Apple Blossom Cologne Company

Allowance for Bad Debts

12-31-03
allowanc
e
for
bad debt
11889

balance at 12-31-02
2003
write
offs

provisio
n
for
bad
debt

14760
-2781

2003
provisi
on
balance per client at
12-31-03

22790

22790

19919

22790

-750
19169 4

22790

adjusting journal entry

(#1)
(B-1)
Adjusted balance
journal entry to adjust
allowance accounting
(#4)
balance per audit

-13580
5589

-13580
9210

provision for
bad deb
Debts

AGE
1-30.
30-60
60-90
more than 90

AGED
AMOUN
T
187107
20570 B1
1450
0
Balance
per

EXPECT
ED
UNCOLL
PERCEN
T
1 1.50%
10.00%
2 50.00%
100.00
3 %

EST
UNCOL
L
2807
2057
725
0
5589

analysis
Adjusted
Balance
Differenc
e

accrued to prior year's working

paper
all write-offs approved by credit
manager
provision appears reasonable and in
line
with prior years
allowances require adjustment reports ( #4 ) to
adjusting
Allowances for doubtful
1358
account
0
Provision for bad
debt

1 188187 - 1080 = 187107

2 3198 - 1748 = 1450
3 750 - 750 = 0

1358
0

4
19169
13580