Zyler Company Is Analyzing Its Accounts Receivable for Purposes of Preparing

question 62

Essay

Zyler Company is analyzing its accounts receivable for purposes of preparing its financial report for the year-ended December 31,2017.The company uses the aging method to estimate bad debts.During this analysis,Zyler discovered that staff had written off a $55,000 account in 2017 even though the company had received information about the bankruptcy of the client in late 2016.
The company has already recorded bad debts expense for 2017,but the general ledger for the year has not yet been closed.The following table provides information relating to Zyler's accounts receivables just prior to the discovery of the $55,000 error:
Required:
Record any adjusting journal entries necessary to correct the error in Zyler's accounts receivable.

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Definitions:

Stimulus Motive

An innate tendency to respond to stimuli in the environment in a certain manner, driven by needs for exploration, manipulation, and activity.

Exploration

The act of investigating, studying, or traveling to new areas to learn about them.

Manipulation

An attempt to influence or control the behavior or emotions of others for one’s own purposes, often without their consent.

Sexual Response Cycle

The sequence of physical and emotional changes that occur as a person becomes sexually aroused and participates in sexually stimulating activities, including phases like excitement, plateau, orgasm, and resolution.