Apple Blossom Cologne Company B-5

Allowance for Bad Debts 1-22-03

12-31-03 JWP

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Allowance Provision
for for
Bad Debts Bad Debts
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Balance at 12-31-02 11889 A
2003 write-offs 14760 Y
-2871
2003 provision 22790 Z 22790
Balance per client at 12-31-03 19919 22790
(TB-BS) (TB-IS)

Adjusting journal entries:

(AJE # 2) (B-1) 0
Adjusted balance 19919 (2) N 22790
Journal entry to adjust allowance account:
(None required)
Balance per audit 19919 22790

Provision For Bad Debts Reasonableness Test:

EXPECTED
AGED UNCOLL. EST
AGE AMOUNT PERCENT UNCOLL.
1-30 188187 (B-1) 1.5% 2823
30-60 20570 (B-1) 10.0% 2057
60-90 3198 (B-1) 50.0% 1599
Over 90 750 (1) 100.0% 750
Balance per Analysis 7229
Adjusted Balance 19919 (2) N
Difference 12690

A Agreed to prior year's working papers.

Y All write-offs approved by credit manager.
Z Provision appears reasonable and in line
with prior years.
N Allowance balance per reasonableness test is lower than client balance
per books. Client declined to reduce the account. The adjusted balance
appears reasonable and is in line with prior year. As the adjustment
would increase income and is less than 1% of net income (before
adjustments), no adjustment is considered necessary. JWP
Catatan Piutang Menurut Buku 212,705
Penyesuaian dari Piutang
a. Tears and doefall company 59,000
b. Darings 26,000
c. Young and beautiful 1,748
d. Insence 1,080
Total penyesuaian 87,828
Piutang menurut audit 124,877
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