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Prepare the journal entry to record the acquisition

The Webster Company uses the aging method to estimate the allowance for doubtful accounts. The following schedule of accounts receivable was prepared as at December

31, 20x6:

Age Balance %

uncollectible

0-30 days $674,000 0.5%

31-60 days 186,000 1.2%

61-90 days 65,400 10%

91-120 days 19,500 50%

Over 120 Days 7,800 75%

$952,700

The balance in the allowance for doubtful accounts at the beginning of the year was $31,150 (cr). The following transactions were recorded during the year:

Accounts receivable written off 34,500

Recoveries of accounts receivable written off as

uncollectible in prior periods

2,300

Required –

Calculate the bad debt expense for the year 20x6.

Question 4

On December 31, 20x1, the Juniper Company purchase a group of four assets for a total cost of $850,000. An independent appraiser assesses the fair value of each asset as

follows:

Asset Fair Value

Land $100,000

Building 600,000

Equipment 250,000

Fixtures 150,000

Prepare the journal entry to record the acquisition of the four assets.

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